HONK is bettering the Northern Kentucky housing market, one family, one household at a time.
Once an achievable goal for Northern Kentuckians through consistency and hard work, homeownership now seems like a distant fantasy. Housing costs continue to outpace wages, and the current housing stock cannot support the workforce. Add inflation to the mix, and the dream of homeownership becomes even more elusive. Many are struggling to make rent, let alone afford a home. In what many call a housing crisis, HONK’s work is more valuable than ever before.
How Unaffordable is Homeownership in Northern Kentucky?
- A household must earn at least $70,000 annually to afford a median-priced home in Northern Kentucky, which is just over $290,000.
- Nearly one in four Northern Kentucky households are paying more than 30% of their income on housing, making them housing cost burdened.
- Only 16% of housing in Northern Kentucky is considered affordable for a resident making $48,000 annually (according to the NKADD).
The Specifics
Area Median Income (AMI) percentages are often used to calculate purchase and rent affordability. According to the U.S. Department of HUD, 80% of the AMI in Campbell, Kenton, and Boone counties is currently $58,700 a year- not enough to afford a median priced home. Spending more than 30% of income on housing is considered housing cost-burdened, forcing other essential needs (such as food and gas) to fall on the backburner. Many hard-working Northern Kentuckians, such as firefighters, schoolteachers, medical assistants, etc., earn less than $70,000 annually and therefore wouldn’t be able to reasonably afford a median priced home.
HONK offers services to those at or below 80% of AMI. Many HONK clients work full-time jobs and don’t qualify for welfare or other forms of assistance. Many are single-income households and first-time homebuyers who need a hand-up. Through a lease-to-own purchase model of homeownership, HONK prepares future homeowners for the responsibility of owning a home. These new homeowners build generational wealth, create lasting stability, and strengthen their surrounding neighborhoods.
HONK Qualifications 2024
| Family Size | Income Under |
| 1 | $58,700 |
| 2 | $67,100 |
| 3 | $75,500 |
| 4 | $83,850 |
| 5 | $90,600 |
| 6 | $97,300 |
| 7 | $110,700 |
Limits are based on HUD’s 80% AMI limits as of June 2024 (subject to change).
Breaking the Cycle
Northern Kentucky is stuck in a positive feedback loop between a lack of affordable housing and stagnant wages, reinforcing each other and creating a cycle that exacerbates economic challenges. As more people struggle to afford housing, the demand for affordable units increases further, worsening the shortage. A Google search for houses in Northern Kentucky selling under the median cost of $290,000 reveals slim pickings. This is because income-aligned housing for people earning around $15-$25 an hour is almost nonexistent.
What’s Next
Housing prices are not expected to decrease anytime soon. Northern Kentucky’s economic future is at risk unless the affordable housing problem is addressed. Officials say it’s best for the government to stay out of the way and leave the issue up to the private sector. But with staggering building costs, developers have no incentive to lay foundations for smaller one- or two-bedroom units. To make their investment worthwhile and generate a greater return, they are building bigger homes. This is bad news for small families and individuals.
Since 1991, HONK has been working to bring affordable homeownership to Northern Kentucky. HONK is able to restore smaller dilapidated houses to functioning, livable spaces while simultaneously keeping costs low thanks to donations and volunteer labor. When a HONK home is complete, it becomes an affordable solution to someone who wouldn’t otherwise be able achieve homeownership.
If you own a home, you understand the positive impact it can have on your life. We need support from our community to propel HONK’s mission forward. Let’s keep our essential workers-many of whom are priced out of the housing market- in Northern Kentucky. We need to increase the number of homeownership opportunities with can create each year for Northern Kentuckians. Please consider donating to HONK today online or by mail. All donations are secure, go entirely towards our mission, and are tax deductible. https://honkhomes.networkforgood.com/projects/239208-double-your-gift-of-home
Sources:
Housing affordability in Northern Kentucky: A critical issue – LINK nky
