e Obama Administration’s Eff orts to Stabilize the Housing Market and Help American Homeowners | May 2012 U.S. Department of Housing and Urban Development | Office of Policy Development and Research

U.S Department of Housing and Urban Development

U.S. Department of the Treasury

Spotlight on Cincinnati MSA | Page 1

Spotlight on the Housing 

Market in Cincinnati-Middletown, 

Ohio-Kentucky-Indiana

The Cincinnati-Middletown OH-KY-IN Metropolitan Statistical Area (Cincinnati) is located along the Ohio River and includes 15 counties in 3 states: Hamilton in southwestern 

Ohio (includes City of Cincinnati) and four other Ohio counties; six counties in Kentucky; and three counties in Indiana. The challenges in the Cincinnati housing market have 

been more severe than those in many areas of the nation. The foreclosure crisis in Cincinnati, as in other parts of the Midwest, developed much earlier than in other parts of 

the country. As early as 2002, the share of distressed mortgages rose above the national average - the rise in distressed mortgage shares did not begin until 2007 in most 

other regions. The Cincinnati MSA did not see the rapid appreciation of the house price bubble; yet, local house prices have fallen below their 2000 levels. Declining property 

values in Cincinnati were fueled in part by excess housing construction in the years prior to the housing crisis, but mainly by rising defaults, driven fi rst by unsustainable 

mortgages, then by the economic downturn and climbing unemployment. Economic conditions in Cincinnati are starting to improve, but the local housing market remains 

fragile - with high concentrations of distressed mortgages (those 90 or more days delinquent or in foreclosure), large numbers of vacant homes, and nearly 25 percent 

of home mortgages underwater. However, the Administration’s broad approach to stabilize the housing market has been a real help to homeowners in Cincinnati and 

surrounding cities. This addendum to the Obama Administration’s Housing Scorecard provides a summary of trends and conditions in the local economy and the impact of the 

Administration’s efforts to stabilize the housing market and help local homeowners.

Population Growth, Employment, and 

Housing Market: 

With 2.13 million people according to the most recent Census, the Cincinnati 

MSA is the 27th largest in the nation. From 2000 to 2010, population 

growth was slow, increasing at an average rate of just 0.6 percent per year. 

Natural population growth (births minus deaths) accounted for nearly all of that 

increase, as an average of only 350 more people moved into the Cincinnati 

MSA each year than moved out. In Hamilton County, the population declined 

by an average of 4,300 people, or 0.5 percent, annually. 

During the decade spanned by the Census, new housing production 

exceeded household growth in the Cincinnati MSA; net annual housing unit 

growth at 1.0 percent was greater than the corresponding population and 

household growth rates of 0.6 and 0.7 percent, respectively. This excess 

construction, while not as great as in some parts of the nation, nevertheless 

contributed to an oversupply of housing and may have led to steeper price 

declines after 2006. According to the Census Bureau, the number of vacant 

units in Cincinnati increased by an average of 3,300, or 6.1 percent annually 

during the 2000s, higher than the national rate of 4.4 percent during the same 

period. While overbuilding in some other metro areas was fueled by investor 

speculation, investor home purchases in Cincinnati represented a relatively 

small share of total purchases in the years leading into the crisis. However, 

subprime lending increased significantly in the Cincinnati MSA in that time, as 

data prepared by the Cincinnati Enquirer shows that the number of subprime 

mortgages increased from 5,836 in 1995 to 15,969 in 2005 and that one 

in every seven new local borrowers in 2005 received a subprime loan.

Date	
  of	
  Census 4/1/00 

Cincinnati	
  Population 2,009,66

	
  	
  	
  Annual	
  Growth	
  Rate	
   -­‐ 

Cincinnati	
  Households 779,226 

	
  	
  	
  Annual	
  Growth	
  Rate	
   -­‐ 

Cincinnati	
  Housing	
  Units 833,067 

	
  	
  	
  Annual	
  Growth	
  Rate	
   -­‐ 

Cincinnati	
  Housing	
  Unit	
  Growth	
  Outpaced	
  Pop

During	
  the	
  Past	
  De

Spotlight on the Housing Market in Cincinnati-Middletown, Ohio-Kent

Source: Census Bureau (2000 and 2010 Decennial)

The Obama Administration's Efforts to Stabilize the Housing Market and Help American Homeowners 

The	
  Cincinna9-­‐Middletown	
  OH-­‐KY-­‐IN	
  Metropolitan	
  Sta9s9cal	
  Area	
  (Cincinna9)	
  is	
  located	
  along	
  the	
  Ohio	
  River	
  and	
  includes	
  15	
  coun9es	
  in	
  3	
  sta

Cincinna9)	
  and	
  four	
  other	
  Ohio	
  coun9es;	
  six	
  coun9es	
  in	
  Kentucky;	
  and	
  three	
  coun9es	
  in	
  Indiana.	
  The	
  challenges	
  in	
  the	
  Cincinna9	
  housing	
  mark

of	
  the	
  na9on.	
  	
  The	
  foreclosure	
  crisis	
  in	
  Cincinna9,	
  as	
  in	
  other	
  parts	
  of	
  the	
  Midwest,	
  developed	
  much	
  earlier	
  than	
  in	
  other	
  parts	
  of	
  the	
  country.	
  

rose	
  above	
  the	
  na9onal	
  	
  average	
  -­‐	
  the	
  rise	
  in	
  distressed	
  mortgage	
  shares	
  did	
  not	
  begin	
  un9l	
  2007	
  in	
  most	
  other	
  regions.	
  	
  The	
  Cincinna9	
  MSA	
  d

bubble;	
  yet,	
  local	
  house	
  prices	
  have	
  fallen	
  below	
  their	
  2000	
  levels.	
  	
  Declining	
  property	
  values	
  	
  in	
  Cincinna9	
  were	
  fueled	
  in	
  part	
  by	
  excess	
  housi

crisis,	
  but	
  mainly	
  by	
  rising	
  defaults,	
  driven	
  first	
  by	
  unsustainable	
  mortgages	
  ,	
  then	
  by	
  the	
  economic	
  downturn	
  and	
  climbing	
  unemployment.	
  Eco

improve,	
  but	
  the	
  local	
  housing	
  market	
  remains	
  fragile	
  -­‐	
  with	
  high	
  concentra9ons	
  of	
  distressed	
  mortgages	
  (those	
  90	
  or	
  more	
  days	
  delinquent	
  o

and	
  nearly	
  25	
  percent	
  of	
  home	
  mortgages	
  underwater.	
  However,	
  the	
  Administra9on’s	
  broad	
  approach	
  to	
  stabilize	
  the	
  housing	
  market	
  has	
  bee

surrounding	
  ci9es.	
  This	
  addendum	
  to	
  the	
  Obama	
  Administra9on’s	
  Housing	
  Scorecard	
  provides	
  a	
  summary	
  of	
  trends	
  and	
  condi9ons	
  in	
  the	
  local

efforts	
  to	
  stabilize	
  the	
  housing	
  market	
  and	
  help	
  local	
  homeowners.	
  

Population Growth, Employment, and Housing Market: 

With	
  2.13	
  million	
  people	
  according	
  to	
  the	
  most	
  recent	
  Census,	
  the	
  Cincinna9	
  MSA	
  is	
  the	
  

27th	
  largest	
  in	
  the	
  na9on.	
  From	
  2000	
  to	
  2010,	
  popula9on	
  growth	
  was	
  slow,	
  increasing	
  

at	
  an	
  average	
  rate	
  of	
  just	
  0.6	
  percent	
  per	
  year.	
  Natural	
  popula9on	
  growth	
  (births	
  minus	
  

deaths)	
  accounted	
  for	
  nearly	
  all	
  of	
  that	
  increase,	
  as	
  an	
  average	
  of	
  only	
  350	
  more	
  people	
  

moved	
  into	
  the	
  Cincinna9	
  MSA	
  each	
  year	
  than	
  moved	
  out.	
  In	
  Hamilton	
  County,	
  the	
  

popula9on	
  declined	
  by	
  an	
  average	
  of	
  4,300	
  people,	
  or	
  0.5	
  percent,	
  annually.	
  	
  

A	
  modest	
  economic	
  recovery	
  is	
  underway	
  in	
  Cincinna?.	
  The	
  local	
  economy	
  had	
  expanded	
  by	
  an	
  average	
  of	
  8,020	
  jobs	
  per	
  year	
  since	
  the	
  third

job	
  losses	
  were	
  significant	
  as	
  a	
  result	
  of	
  the	
  recent	
  recession:	
  during	
  the	
  two	
  year	
  period	
  beginning	
  the	
  first	
  quarter	
  of	
  2008,	
  the	
  region	
  averag

economy	
  has	
  made	
  modest	
  gains	
  in	
  the	
  years	
  since,	
  with	
  an	
  average	
  of	
  9,250	
  jobs	
  added	
  annually,	
  or	
  0.9	
  percent.	
  The	
  professional	
  and	
  busine

have	
  been	
  the	
  major	
  contributors	
  to	
  job	
  growth	
  during	
  the	
  past	
  2	
  years,	
  increasing	
  jobs	
  by	
  a	
  combined	
  total	
  of	
  13,000	
  per	
  year.	
  Employment	
  d

same	
  period	
  by	
  an	
  average	
  of	
  2,000	
  jobs	
  lost	
  each	
  year.	
  The	
  na9onal	
  unemployment	
  rate	
  peaked	
  in	
  October	
  2009	
  at	
  10.0	
  and	
  fell	
  to	
  8.2	
  percen

has	
  followed	
  a	
  more	
  favorable	
  trend,	
  improving	
  from	
  a	
  high	
  of	
  10.0	
  in	
  March	
  2010	
  to	
  7.5	
  percent	
  in	
  April	
  2012.	
  	
  	
  

124	
  

126	
  

128	
  

130	
  

132	
  

134	
  

136	
  

138	
  

140	
  

940	
  

960	
  

980	
  

1,000	
  

1,020	
  

1,040	
  

1,060	
  

Thousands	
  

Year	
  and	
  Quarter	
  

Job Market Conditions Improving for Cincinnati and Nation 

Quarterly	
  Nonfarm	
  Employment	
  

Cincinna9	
  MSA	
   Na9on	
  (right	
  axis)	
  

Seasonally	
  Adjusted	
  Data	
  	
  

Source:	
  Bureau	
  of	
  Labor	
  	
  Sta9s9cs	
  

Millions	
  

0	
  

2	
  

4	
  

6	
  

8	
  

10	
  

12	
  

Seaso

Sourc

During	
  the	
  decade	
  spanned	
  by	
  the	
  Census,	
  new	
  housing	
  produc9on	
  exceeded	
  household	
  growth	
  in	
  the	
  Cincinna9	
  MSA;	
  net	
  annual	
  housing	
  uni

greater	
  than	
  the	
  corresponding	
  popula9on	
  and	
  household	
  growth	
  rates	
  of	
  0.6	
  and	
  0.7	
  percent,	
  respec9vely.	
  This	
  excess	
  construc9on,	
  while	
  no

na9on,	
  nevertheless	
  contributed	
  to	
  an	
  oversupply	
  of	
  housing	
  and	
  may	
  have	
  led	
  to	
  steeper	
  price	
  declines	
  aher	
  2006.	
  According	
  to	
  the	
  Census	
  B

units	
  in	
  Cincinna9	
  increased	
  by	
  an	
  average	
  of	
  3,300,	
  or	
  6.1	
  percent	
  annually	
  during	
  the	
  2000s,	
  higher	
  than	
  the	
  na9onal	
  rate	
  of	
  4.4	
  percent	
  duri

overbuilding	
  in	
  some	
  other	
  metro	
  areas	
  was	
  fueled	
  by	
  investor	
  specula9on,	
  investor	
  home	
  purchases	
  in	
  Cincinna9	
  represented	
  a	
  rela9vely	
  sma

years	
  leading	
  into	
  the	
  crisis.	
  However,	
  subprime	
  lending	
  increased	
  significantly	
  in	
  the	
  Cincinna9	
  MSA	
  in	
  that	
  9me,	
  as	
  data	
  prepared	
  by	
  the	
  Cinc

number	
  of	
  subprime	
  mortgages	
  increased	
  from	
  5,836	
  in	
  1995	
  to	
  15,969	
  in	
  2005	
  and	
  that	
  one	
  in	
  every	
  seven	
  new	
  local	
  borrowers	
  in	
  2005	
  recei

Date	
  of	
  Census 4/1/00 4/1/10

Cincinnati	
  Population 2,009,664 2,130,151

	
  	
  	
  Annual	
  Growth	
  Rate	
   -­‐ 0.6%

Cincinnati	
  Households 779,226 830,608

	
  	
  	
  Annual	
  Growth	
  Rate	
   -­‐ 0.7%

Cincinnati	
  Housing	
  Units 833,067 917,396

	
  	
  	
  Annual	
  Growth	
  Rate	
   -­‐ 1.0%

Cincinnati	
  Housing	
  Unit	
  Growth	
  Outpaced	
  Population	
  and	
  Household	
  Growth	
  

During	
  the	
  Past	
  Decade

Spotlight on the Housing Market in Cincinnati-Middletown, Ohio-Kentucky-Indiana

Source: Census Bureau (2000 and 2010 Decennial)

The Obama Administration's Efforts to Stabilize the Housing Market and Help American Homeowners - May 2012 

inna9-­‐Middletown	
  OH-­‐KY-­‐IN	
  Metropolitan	
  Sta9s9cal	
  Area	
  (Cincinna9)	
  is	
  located	
  along	
  the	
  Ohio	
  River	
  and	
  includes	
  15	
  coun9es	
  in	
  3	
  states:	
  Hamilton	
  in	
  southwestern	
  Ohio	
  (includes	
  City	
  of	
  

9)	
  and	
  four	
  other	
  Ohio	
  coun9es;	
  six	
  coun9es	
  in	
  Kentucky;	
  and	
  three	
  coun9es	
  in	
  Indiana.	
  The	
  challenges	
  in	
  the	
  Cincinna9	
  housing	
  market	
  have	
  been	
  more	
  severe	
  than	
  those	
  in	
  many	
  areas	
  

a9on.	
  	
  The	
  foreclosure	
  crisis	
  in	
  Cincinna9,	
  as	
  in	
  other	
  parts	
  of	
  the	
  Midwest,	
  developed	
  much	
  earlier	
  than	
  in	
  other	
  parts	
  of	
  the	
  country.	
  As	
  early	
  as	
  2002,	
  the	
  share	
  of	
  distressed	
  mortgages	
  

ove	
  the	
  na9onal	
  	
  average	
  -­‐	
  the	
  rise	
  in	
  distressed	
  mortgage	
  shares	
  did	
  not	
  begin	
  un9l	
  2007	
  in	
  most	
  other	
  regions.	
  	
  The	
  Cincinna9	
  MSA	
  did	
  not	
  see	
  the	
  rapid	
  apprecia9on	
  of	
  the	
  house	
  price	
  

yet,	
  local	
  house	
  prices	
  have	
  fallen	
  below	
  their	
  2000	
  levels.	
  	
  Declining	
  property	
  values	
  	
  in	
  Cincinna9	
  were	
  fueled	
  in	
  part	
  by	
  excess	
  housing	
  construc9on	
  in	
  the	
  years	
  prior	
  to	
  the	
  housing	
  

t	
  mainly	
  by	
  rising	
  defaults,	
  driven	
  first	
  by	
  unsustainable	
  mortgages	
  ,	
  then	
  by	
  the	
  economic	
  downturn	
  and	
  climbing	
  unemployment.	
  Economic	
  condi9ons	
  in	
  Cincinna9	
  are	
  star9ng	
  to	
  

,	
  but	
  the	
  local	
  housing	
  market	
  remains	
  fragile	
  -­‐	
  with	
  high	
  concentra9ons	
  of	
  distressed	
  mortgages	
  (those	
  90	
  or	
  more	
  days	
  delinquent	
  or	
  in	
  foreclosure),	
  large	
  numbers	
  of	
  vacant	
  homes,	
  

rly	
  25	
  percent	
  of	
  home	
  mortgages	
  underwater.	
  However,	
  the	
  Administra9on’s	
  broad	
  approach	
  to	
  stabilize	
  the	
  housing	
  market	
  has	
  been	
  a	
  real	
  help	
  to	
  homeowners	
  in	
  Cincinna9	
  and	
  

ding	
  ci9es.	
  This	
  addendum	
  to	
  the	
  Obama	
  Administra9on’s	
  Housing	
  Scorecard	
  provides	
  a	
  summary	
  of	
  trends	
  and	
  condi9ons	
  in	
  the	
  local	
  economy	
  and	
  the	
  impact	
  of	
  the	
  Administra9on’s	
  

o	
  stabilize	
  the	
  housing	
  market	
  and	
  help	
  local	
  homeowners.	
  

ation Growth, Employment, and Housing Market: 

3	
  million	
  people	
  according	
  to	
  the	
  most	
  recent	
  Census,	
  the	
  Cincinna9	
  MSA	
  is	
  the	
  

gest	
  in	
  the	
  na9on.	
  From	
  2000	
  to	
  2010,	
  popula9on	
  growth	
  was	
  slow,	
  increasing	
  

erage	
  rate	
  of	
  just	
  0.6	
  percent	
  per	
  year.	
  Natural	
  popula9on	
  growth	
  (births	
  minus	
  

accounted	
  for	
  nearly	
  all	
  of	
  that	
  increase,	
  as	
  an	
  average	
  of	
  only	
  350	
  more	
  people	
  

nto	
  the	
  Cincinna9	
  MSA	
  each	
  year	
  than	
  moved	
  out.	
  In	
  Hamilton	
  County,	
  the	
  

on	
  declined	
  by	
  an	
  average	
  of	
  4,300	
  people,	
  or	
  0.5	
  percent,	
  annually.	
  	
  

st	
  economic	
  recovery	
  is	
  underway	
  in	
  Cincinna?.	
  The	
  local	
  economy	
  had	
  expanded	
  by	
  an	
  average	
  of	
  8,020	
  jobs	
  per	
  year	
  since	
  the	
  third	
  quarter	
  of	
  2003,	
  represen9ng	
  a	
  0.8	
  percent	
  pace	
  of	
  growth.	
  	
  But	
  

s	
  were	
  significant	
  as	
  a	
  result	
  of	
  the	
  recent	
  recession:	
  during	
  the	
  two	
  year	
  period	
  beginning	
  the	
  first	
  quarter	
  of	
  2008,	
  the	
  region	
  averaged	
  35,900	
  jobs	
  lost,	
  or	
  a	
  3.4	
  percent	
  annual	
  decline.	
  The	
  local	
  

y	
  has	
  made	
  modest	
  gains	
  in	
  the	
  years	
  since,	
  with	
  an	
  average	
  of	
  9,250	
  jobs	
  added	
  annually,	
  or	
  0.9	
  percent.	
  The	
  professional	
  and	
  business	
  services,	
  leisure	
  and	
  hospitality,	
  and	
  manufacturing	
  sectors	
  

en	
  the	
  major	
  contributors	
  to	
  job	
  growth	
  during	
  the	
  past	
  2	
  years,	
  increasing	
  jobs	
  by	
  a	
  combined	
  total	
  of	
  13,000	
  per	
  year.	
  Employment	
  declines,	
  mainly	
  in	
  the	
  government,	
  offset	
  job	
  gains	
  during	
  this	
  

riod	
  by	
  an	
  average	
  of	
  2,000	
  jobs	
  lost	
  each	
  year.	
  The	
  na9onal	
  unemployment	
  rate	
  peaked	
  in	
  October	
  2009	
  at	
  10.0	
  and	
  fell	
  to	
  8.2	
  percent	
  by	
  May	
  2012.	
  The	
  unemployment	
  rate	
  for	
  the	
  Cincinna9	
  MSA	
  

wed	
  a	
  more	
  favorable	
  trend,	
  improving	
  from	
  a	
  high	
  of	
  10.0	
  in	
  March	
  2010	
  to	
  7.5	
  percent	
  in	
  April	
  2012.	
  	
  	
  

124	
  

126	
  

128	
  

130	
  

132	
  

134	
  

136	
  

138	
  

140	
  

940	
  

960	
  

980	
  

000	
  

020	
  

040	
  

060	
  

Year	
  and	
  Quarter	
  

Job Market Conditions Improving for Cincinnati and Nation 

Quarterly	
  Nonfarm	
  Employment	
  

Cincinna9	
  MSA	
   Na9on	
  (right	
  axis)	
  

Seasonally	
  Adjusted	
  Data	
  	
  

Source:	
  Bureau	
  of	
  Labor	
  	
  Sta9s9cs	
  

Millions	
  

0	
  

2	
  

4	
  

6	
  

8	
  

10	
  

12	
  

Unemployment Rate Remains High, 

But Shows Improvement 

Monthly	
  Unemployment	
  Rate	
  (Percent)	
  

Cincinna9	
  MSA	
   Na9on	
  

Seasonally	
  Adjusted	
  Data	
  

Source:	
  Bureau	
  of	
  Labor	
  Sta9s9cs	
  

he	
  decade	
  spanned	
  by	
  the	
  Census,	
  new	
  housing	
  produc9on	
  exceeded	
  household	
  growth	
  in	
  the	
  Cincinna9	
  MSA;	
  net	
  annual	
  housing	
  unit	
  growth	
  at	
  1.0	
  percent	
  was	
  

han	
  the	
  corresponding	
  popula9on	
  and	
  household	
  growth	
  rates	
  of	
  0.6	
  and	
  0.7	
  percent,	
  respec9vely.	
  This	
  excess	
  construc9on,	
  while	
  not	
  as	
  great	
  as	
  in	
  some	
  parts	
  of	
  the	
  

evertheless	
  contributed	
  to	
  an	
  oversupply	
  of	
  housing	
  and	
  may	
  have	
  led	
  to	
  steeper	
  price	
  declines	
  aher	
  2006.	
  According	
  to	
  the	
  Census	
  Bureau,	
  the	
  number	
  of	
  vacant	
  

Cincinna9	
  increased	
  by	
  an	
  average	
  of	
  3,300,	
  or	
  6.1	
  percent	
  annually	
  during	
  the	
  2000s,	
  higher	
  than	
  the	
  na9onal	
  rate	
  of	
  4.4	
  percent	
  during	
  the	
  same	
  period.	
  While	
  

ding	
  in	
  some	
  other	
  metro	
  areas	
  was	
  fueled	
  by	
  investor	
  specula9on,	
  investor	
  home	
  purchases	
  in	
  Cincinna9	
  represented	
  a	
  rela9vely	
  small	
  share	
  of	
  total	
  purchases	
  in	
  the	
  

ding	
  into	
  the	
  crisis.	
  However,	
  subprime	
  lending	
  increased	
  significantly	
  in	
  the	
  Cincinna9	
  MSA	
  in	
  that	
  9me,	
  as	
  data	
  prepared	
  by	
  the	
  Cincinna&	
  Enquirer	
  shows	
  that	
  the	
  

of	
  subprime	
  mortgages	
  increased	
  from	
  5,836	
  in	
  1995	
  to	
  15,969	
  in	
  2005	
  and	
  that	
  one	
  in	
  every	
  seven	
  new	
  local	
  borrowers	
  in	
  2005	
  received	
  a	
  subprime	
  loan.	
  

Cincinnati Housing Unit Growth Outpaced Populati on and 

Household Growth During the Past Decade

Date of Census 4/1/2000 4/1/2010

Cincinnati Populati on 2,009,664 2,130,151 

 Annual Growth Rate - 0.6%

Cincinnati Households 779,226 830,608 

 Annual Growth Rate - 0.7%

Cincinnati Housing Units 833,067 917,396 

 Annual Growth Rate - 1.0%

Source: Census Bureau (2000 and 2010 Decennial)
 e Obama Administration’s Eff orts to Stabilize the Housing Market and Help American Homeowners | May 2012 U.S. Department of Housing and Urban Development | Office of Policy Development and Research

U.S Department of Housing and Urban Development

U.S. Department of the Treasury

Spotlight on Cincinnati MSA | Page 2

A modest economic recovery is underway in Cincinnati.

The local economy had expanded by an average of 8,020 jobs per 

year since the third quarter of 2003, representing a 0.8 percent pace of 

growth. But job losses were signifi cant as a result of the recent recession: 

during the two year period beginning the fi rst quarter of 2008, the 

region averaged 35,900 jobs lost, or a 3.4 percent annual decline. 

The local economy has made modest gains in the years since, with an 

average of 9,250 jobs added annually, or 0.9 percent. The professional 

and business services, leisure and hospitality, and manufacturing sectors 

have been the major contributors to job growth during the past 2 years, 

increasing jobs by a combined total of 13,000 per year. Employment 

declines, mainly in the government, offset job gains during this same 

period by an average of 2,000 jobs lost each year. The national 

unemployment rate peaked in October 2009 at 10.0 and fell to 8.2 

percent by May 2012. The unemployment rate for the Cincinnati MSA 

has followed a more favorable trend, improving from a high of 10.0 in 

March 2010 to 7.5 percent in April 2012. 

Home sales in the Cincinnati MSA remain at low levels. 

Existing home sales began a steep decline in 2006 but have leveled off 

since 2008. New home sales also fell sharply from 2006 through 2008 

and have continued a slow decline. Sales of bank-owned properties 

and short sales remain high at 30 percent of existing home sales in the 

Cincinnati market and are in line with the national rate of 29 percent. The 

high proportion of deeply discounted distressed sales has contributed to 

the continued weakness in home prices. A relatively sluggish economy, 

slow population growth, an excess housing supply, and distressed 

sales seen earlier than in the rest of the nation kept Cincinnati home 

price increases much lower than national rates. The CoreLogic repeatsales house price index (HPI) shows that the rise in home prices in the 

Cincinnati-Middletown MSA was approximately one-quarter the national 

pace between 2000 and mid-2006. From their peak in 2006 to the end 

of the house price bubble in March 2009, home prices fell by 18 percent 

in Cincinnati, approximately half the national average peak-to-low 

decline of 31 percent. The net effect for Cincinnati is that home prices are 

now where they were at the beginning of 2000. Without distressed sales, 

Cincinnati house prices would be at much higher 2003 levels, as seen in 

national home prices. 

The Cincinnati rental housing market has improved since 

2011. According to Reis Inc., the overall apartment vacancy rate in 

Cincinnati was 4.9 percent in the fi rst quarter of 2012, down from 6.4 

percent a year earlier and similar to the decline in the national vacancy 

rates from 6.2 to 4.9 percent. During the fi rst quarter of 2012, average 

rents in Cincinnati increased by 2 percent from a year ago to $732. The 

average rent nationwide also increased by 2 percent to $1,070 during 

the same period. 

Trends in Mortgage Delinquencies and 

Foreclosures: 

Cincinnati homeowners continue to struggle with high mortgage 

delinquency and foreclosure levels. As of March 2012, Cincinnati placed 

111th out of 366 metropolitan areas ranked by share of mortgages 

at risk of foreclosure (90 or more days delinquent or in the foreclosure 

process) according to LPS Applied Analytics. LPS data also show that 

Cincinnati area mortgages at risk of foreclosure increased by 5.1 

percent during the past year, from 16,750 in March 2011 to 17,600 

in March 2012, compared with a national decline of 2.4 percent 

during the same period. CoreLogic data since 2000 show that the rate 

of mortgages at risk of foreclosure in Cincinnati had been consistently 

higher than the nations’ before mid-2008, but rose less steeply during the 

Foreclosure	
  Rate Foreclosure	
  

Completions Foreclosure	
  Rate

0.1% 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  17,900	
   1.9%

0.1% 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  2,693,300	
   2.0%

ousing	
  Units;

osures	
  since	
  April	
  2009

pletion	
  Rates	
  in	
  the	
  Cincinnati	
  MSA

ter	
  2012 Since	
  April	
  1,	
  2009

Spotlight on the Housing Market in Cincinnati-Middletown, Ohio-Kentucky-Indiana

main	
  at	
  low	
  levels.	
  	
  ExisOng	
  home	
  sales	
  began	
  a	
  steep	
  decline	
  in	
  2006	
  but	
  

me	
  sales	
  also	
  fell	
  sharply	
  from	
  2006	
  through	
  2008	
  and	
  have	
  conOnued	
  to	
  

	
  bank-­‐owned	
  properOes	
  and	
  short	
  sales	
  remain	
  high	
  at	
  30	
  percent	
  of	
  

market	
  and	
  are	
  comparable	
  to	
  the	
  naOonal	
  rate	
  of	
  29	
  percent.	
  The	
  high	
  

–	
  which	
  were	
  sold	
  at	
  deep	
  discounts	
  –	
  has	
  contributed	
  to	
  the	
  conOnued	
  

p	
  to	
  the	
  peak	
  in	
  home	
  prices	
  in	
  mid-­‐2006,	
  a	
  relaOvely	
  sluggish	
  economy,	
  

ousing	
  supply,	
  and	
  distressed	
  sales	
  -­‐	
  which	
  began	
  rising	
  earlier	
  than	
  in	
  the	
  

ncreases	
  much	
  lower	
  than	
  naOonal	
  rates.	
  The	
  CoreLogic	
  repeat-­‐sales	
  

he	
  rise	
  in	
  home	
  prices	
  in	
  the	
  CincinnaO-­‐Middletown	
  MSA	
  was	
  

nal	
  pace	
  between	
  2000	
  and	
  mid-­‐2006.	
  From	
  their	
  peak	
  in	
  2006	
  to	
  the	
  end	
  

009,	
  home	
  prices	
  fell	
  by	
  18	
  percent	
  in	
  CincinnaO,	
  approximately	
  half	
  the	
  

e	
  of	
  31	
  percent.	
  	
  The	
  net	
  effect	
  for	
  CincinnaO	
  has	
  current	
  home	
  prices	
  

	
  2000,	
  compared	
  to	
  current	
  prices	
  where	
  they	
  were	
  at	
  the	
  beginning	
  of	
  

eat-­‐sales	
  HPI	
  that	
  excludes	
  distressed	
  sales	
  shows	
  that	
  CincinnaO	
  house	
  

	
  levels	
  without	
  these	
  discounted	
  sales.	
  	
  

	
  has	
  improved	
  since	
  2010.	
  Rental	
  vacancy	
  rates	
  in	
  CincinnaO	
  have	
  

e	
  naOon	
  since	
  the	
  la^er	
  part	
  of	
  2008.	
  According	
  to	
  Reis	
  Inc.,	
  the	
  overall	
  

	
  was	
  4.9	
  percent	
  in	
  the	
  first	
  quarter	
  of	
  2012,	
  down	
  from	
  6.4	
  percent	
  a	
  

e	
  in	
  the	
  naOonal	
  average	
  from	
  6.2	
  to	
  4.9	
  percent.	
  During	
  the	
  first	
  quarter	
  

ncreased	
  by	
  2	
  percent	
  from	
  a	
  year	
  ago	
  to	
  $732.	
  The	
  average	
  rent	
  

ent	
  to	
  $1,070	
  during	
  the	
  same	
  period.	
  	
  	
  	
  

80	
  

100	
  

120	
  

140	
  

160	
  

180	
  

200	
  

220	
  

Cincinnati Home Prices Decline 

Although Did Not Experience Run Up of Housing Bubble 

Repeat-­‐Sales	
  House	
  Price	
  Index	
  	
  (Jan	
  2000	
  =	
  100)	
  

CincinnaO-­‐Middletown	
  MSA	
   NaOon	
  

Source:	
  CoreLogic.	
  Metro	
  area	
  HPI	
  

4

5	
  

6	
  

7	
  

8	
  

9	
  

Rental Vacancy Rates Trend Similar to the Nation 

Quarterly	
  Apartment	
  Rental	
  Vacancy	
  Rates	
  (Percent)	
  

0	
  

1	
  

2	
  

3	
  

4	
  

5	
  

6	
  

7	
  

8	
  

9	
  

CincinnaO	
  MSA	
   NaOon	
  

Source:	
  CoreLogic	
  

Distressed Mortgage Shares Rose Above National Level in 2002; 

Peak and Current Shares Remain Below Nation 

Mortgages	
  90+	
  Days	
  Delinquent	
  (Percent	
  of	
  All	
  AcOve	
  Mortgages)	
  

0	
  

1,000	
  

2,000	
  

3,000	
  

4,000	
  

5,000	
  

6,000	
  

7,000	
  

8,000	
  

9,000	
  

10,000	
  

0	
  

5	
  

10	
  

15	
  

20	
  

25	
  

30	
  

35	
  

40	
  

45	
  

50	
  

2003	
   2004	
   2005	
   2006	
   2007	
   2008	
   2009	
   2010	
   2011	
  

New and Existing Home Sales: Cincinnati Compared to the Nation 

Annual	
  Home	
  Sales	
  (thousands)	
  	
  

NaOon:	
  ExisOng	
  Sales	
  (right	
  axis)	
   NaOon:	
  New	
  Sales	
  (right	
  axis)	
  

CincinnaO	
  MSA:	
  ExisOng	
  	
  Sales	
   CincinnaO	
  MSA:	
  New	
  Sales	
  

Sources:	
  CoreLogic,	
  HUD/Census	
  	
  Bureau,	
  and	
  NaOonal	
  AssociaOon	
  of	
  Realtors	
  

encies and Foreclosures: 

uggle	
  with	
  high	
  mortgage	
  delinquency	
  and	
  foreclosure	
  levels.	
  As	
  of	
  March	
  

6	
  metropolitan	
  areas	
  ranked	
  by	
  share	
  of	
  mortgages	
  at	
  risk	
  of	
  foreclosure	
  (90	
  

losure	
  process)	
  according	
  to	
  LPS	
  Applied	
  AnalyOcs.	
  LPS	
  data	
  also	
  show	
  that	
  

eclosure	
  increased	
  by	
  5.1	
  percent	
  during	
  the	
  past	
  year,	
  from	
  16,750	
  in	
  

ompared	
  with	
  a	
  naOonal	
  decline	
  of	
  2.4	
  percent	
  during	
  the	
  same	
  

w	
  that	
  the	
  rate	
  of	
  mortgages	
  at	
  risk	
  of	
  foreclosure	
  in	
  CincinnaO	
  had	
  been	
  

fore	
  mid-­‐2008	
  but	
  rose	
  less	
  steeply	
  during	
  the	
  foreclosure	
  crisis.	
  In	
  the	
  first	
  

reclosures	
  where	
  largely	
  associated	
  with	
  unaffordable	
  loan	
  products,	
  

ore	
  slowly	
  in	
  CincinnaO	
  -­‐	
  from	
  2.5	
  to	
  3.9	
  percent	
  	
  of	
  acOve	
  mortgages	
  during	
  

r	
  the	
  naOon	
  was	
  1.6	
  to	
  4.4	
  percent.	
  Beginning	
  in	
  2009,	
  foreclosures	
  were	
  

s	
  and	
  were	
  triggered	
  by	
  loss	
  of	
  income,	
  unemployment,	
  and	
  negaOve	
  equity	
  

eserve	
  of	
  Chicago.	
  During	
  this	
  Ome,	
  the	
  share	
  of	
  severely	
  delinquent	
  

cent	
  in	
  early	
  2010,	
  and	
  aier	
  dipping,	
  remains	
  at	
  that	
  level.	
  Severely	
  

aOcally	
  for	
  the	
  naOon,	
  peaking	
  at	
  7.9	
  percent	
  in	
  early	
  2010,	
  but	
  have	
  since	
  

osure	
  compleOon	
  rate	
  since	
  April	
  2009	
  in	
  CincinnaO,	
  at	
  1.9	
  percent,	
  is	
  

0	
  percent.	
  Although	
  foreclosure	
  compleOons	
  have	
  been	
  on	
  the	
  decline	
  

re	
  compleOons	
  have	
  been	
  relaOvely	
  flat	
  in	
  CincinnaO	
  during	
  the	
  same	
  Ome	
  

s	
  conOnue	
  to	
  affect	
  foreclosure	
  compleOons	
  locally	
  and	
  naOonally.	
  

ortgages	
  in	
  the	
  CincinnaO	
  MSA	
  are	
  currently	
  underwater	
  –	
  compared	
  to	
  23	
  

onal	
  homeowners	
  and	
  loans	
  potenOally	
  at	
  risk.	
  	
  	
  

Foreclosure	
  Rate Foreclosure	
  

Completions Foreclosure	
  Rate

0.1% 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  17,900	
   1.9%

0.1% 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  2,693,300	
   2.0%

ousing	
  Units;

osures	
  since	
  April	
  2009

pletion	
  Rates	
  in	
  the	
  Cincinnati	
  MSA

ter	
  2012 Since	
  April	
  1,	
  2009

nal	
  pace	
  between	
  2000	
  and	
  mid-­‐2006.	
  From	
  their	
  peak	
  in	
  2006	
  to	
  the	
  end	
  

009,	
  home	
  prices	
  fell	
  by	
  18	
  percent	
  in	
  CincinnaO,	
  approximately	
  half	
  the	
  

	
  of	
  31	
  percent.	
  	
  The	
  net	
  effect	
  for	
  CincinnaO	
  has	
  current	
  home	
  prices	
  

	
  2000,	
  compared	
  to	
  current	
  prices	
  where	
  they	
  were	
  at	
  the	
  beginning	
  of	
  

eat-­‐sales	
  HPI	
  that	
  excludes	
  distressed	
  sales	
  shows	
  that	
  CincinnaO	
  house	
  

	
  levels	
  without	
  these	
  discounted	
  sales.	
  	
  

	
  has	
  improved	
  since	
  2010.	
  Rental	
  vacancy	
  rates	
  in	
  CincinnaO	
  have	
  

e	
  naOon	
  since	
  the	
  la^er	
  part	
  of	
  2008.	
  According	
  to	
  Reis	
  Inc.,	
  the	
  overall	
  

	
  was	
  4.9	
  percent	
  in	
  the	
  first	
  quarter	
  of	
  2012,	
  down	
  from	
  6.4	
  percent	
  a	
  

e	
  in	
  the	
  naOonal	
  average	
  from	
  6.2	
  to	
  4.9	
  percent.	
  During	
  the	
  first	
  quarter	
  

ncreased	
  by	
  2	
  percent	
  from	
  a	
  year	
  ago	
  to	
  $732.	
  The	
  average	
  rent	
  

nt	
  to	
  $1,070	
  during	
  the	
  same	
  period.	
  	
  	
  	
  

80	
  

100	
  

120	
  

140	
  

160	
  

180	
  

200	
  

220	
  

Cincinnati Home Prices Decline 

Although Did Not Experience Run Up of Housing Bubble 

Repeat-­‐Sales	
  House	
  Price	
  Index	
  	
  (Jan	
  2000	
  =	
  100)	
  

CincinnaO-­‐Middletown	
  MSA	
   NaOon	
  

Source:	
  CoreLogic.	
  Metro	
  area	
  HPI	
  

4	
  

5	
  

6	
  

7	
  

8	
  

9	
  

Year	
  and	
  Quarter	
  

Rental Vacancy Rates Trend Similar to the Nation 

Quarterly	
  Apartment	
  Rental	
  Vacancy	
  Rates	
  (Percent)	
  

CincinnaO	
  Metro	
  Area	
   NaOon	
  

Source:	
  Reis	
  Inc.	
  

0	
  

1	
  

2	
  

3	
  

4	
  

5	
  

6	
  

7	
  

8	
  

9	
  

CincinnaO	
  MSA	
   NaOon	
  

Source:	
  CoreLogic	
  

Distressed Mortgage Shares Rose Above National Level in 2002; 

Peak and Current Shares Remain Below Nation 

Mortgages	
  90+	
  Days	
  Delinquent	
  (Percent	
  of	
  All	
  AcOve	
  Mortgages)	
  

0	
  

1,000	
  

2,000	
  

3,000	
  

4,000	
  

5,000	
  

6,000	
  

7,000	
  

0	
  

5	
  

10	
  

15	
  

20	
  

25	
  

30	
  

35	
  

2003	
   2004	
   2005	
   2006	
   2007	
   2008	
   2009	
   2010	
   2011	
  

NaOon:	
  ExisOng	
  Sales	
  (right	
  axis)	
   NaOon:	
  New	
  Sales	
  (right	
  axis)	
  

CincinnaO	
  MSA:	
  ExisOng	
  	
  Sales	
   CincinnaO	
  MSA:	
  New	
  Sales	
  

Sources:	
  CoreLogic,	
  HUD/Census	
  	
  Bureau,	
  and	
  NaOonal	
  AssociaOon	
  of	
  Realtors	
  

ncies and Foreclosures: 

uggle	
  with	
  high	
  mortgage	
  delinquency	
  and	
  foreclosure	
  levels.	
  As	
  of	
  March	
  

6	
  metropolitan	
  areas	
  ranked	
  by	
  share	
  of	
  mortgages	
  at	
  risk	
  of	
  foreclosure	
  (90	
  

losure	
  process)	
  according	
  to	
  LPS	
  Applied	
  AnalyOcs.	
  LPS	
  data	
  also	
  show	
  that	
  

eclosure	
  increased	
  by	
  5.1	
  percent	
  during	
  the	
  past	
  year,	
  from	
  16,750	
  in	
  

ompared	
  with	
  a	
  naOonal	
  decline	
  of	
  2.4	
  percent	
  during	
  the	
  same	
  

	
  that	
  the	
  rate	
  of	
  mortgages	
  at	
  risk	
  of	
  foreclosure	
  in	
  CincinnaO	
  had	
  been	
  

fore	
  mid-­‐2008	
  but	
  rose	
  less	
  steeply	
  during	
  the	
  foreclosure	
  crisis.	
  In	
  the	
  first	
  

reclosures	
  where	
  largely	
  associated	
  with	
  unaffordable	
  loan	
  products,	
  

ore	
  slowly	
  in	
  CincinnaO	
  -­‐	
  from	
  2.5	
  to	
  3.9	
  percent	
  	
  of	
  acOve	
  mortgages	
  during	
  

r	
  the	
  naOon	
  was	
  1.6	
  to	
  4.4	
  percent.	
  Beginning	
  in	
  2009,	
  foreclosures	
  were	
  

s	
  and	
  were	
  triggered	
  by	
  loss	
  of	
  income,	
  unemployment,	
  and	
  negaOve	
  equity	
  

serve	
  of	
  Chicago.	
  During	
  this	
  Ome,	
  the	
  share	
  of	
  severely	
  delinquent	
  

cent	
  in	
  early	
  2010,	
  and	
  aier	
  dipping,	
  remains	
  at	
  that	
  level.	
  Severely	
  

aOcally	
  for	
  the	
  naOon,	
  peaking	
  at	
  7.9	
  percent	
  in	
  early	
  2010,	
  but	
  have	
  since	
  

osure	
  compleOon	
  rate	
  since	
  April	
  2009	
  in	
  CincinnaO,	
  at	
  1.9	
  percent,	
  is	
  

0	
  percent.	
  Although	
  foreclosure	
  compleOons	
  have	
  been	
  on	
  the	
  decline	
  

re	
  compleOons	
  have	
  been	
  relaOvely	
  flat	
  in	
  CincinnaO	
  during	
  the	
  same	
  Ome	
  

s	
  conOnue	
  to	
  affect	
  foreclosure	
  compleOons	
  locally	
  and	
  naOonally.	
  

ortgages	
  in	
  the	
  CincinnaO	
  MSA	
  are	
  currently	
  underwater	
  –	
  compared	
  to	
  23	
  

onal	
  homeowners	
  and	
  loans	
  potenOally	
  at	
  risk.	
  	
  	
  

oreclosure	
  Rate Foreclosure	
  

Completions Foreclosure	
  Rate

0.1% 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  17,900	
   1.9%

0.1% 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  2,693,300	
   2.0%

using	
  Units;

ures	
  since	
  April	
  2009

etion	
  Rates	
  in	
  the	
  Cincinnati	
  MSA

r	
  2012 Since	
  April	
  1,	
  2009

Spotlight on the Housing Market in Cincinnati-Middletown, Ohio-Kentucky-Indiana

ain	
  at	
  low	
  levels.	
  	
  ExisOng	
  home	
  sales	
  began	
  a	
  steep	
  decline	
  in	
  2006	
  but	
  

e	
  sales	
  also	
  fell	
  sharply	
  from	
  2006	
  through	
  2008	
  and	
  have	
  conOnued	
  to	
  

bank-­‐owned	
  properOes	
  and	
  short	
  sales	
  remain	
  high	
  at	
  30	
  percent	
  of	
  

market	
  and	
  are	
  comparable	
  to	
  the	
  naOonal	
  rate	
  of	
  29	
  percent.	
  The	
  high	
  

which	
  were	
  sold	
  at	
  deep	
  discounts	
  –	
  has	
  contributed	
  to	
  the	
  conOnued	
  

o	
  the	
  peak	
  in	
  home	
  prices	
  in	
  mid-­‐2006,	
  a	
  relaOvely	
  sluggish	
  economy,	
  

using	
  supply,	
  and	
  distressed	
  sales	
  -­‐	
  which	
  began	
  rising	
  earlier	
  than	
  in	
  the	
  

creases	
  much	
  lower	
  than	
  naOonal	
  rates.	
  The	
  CoreLogic	
  repeat-­‐sales	
  

e	
  rise	
  in	
  home	
  prices	
  in	
  the	
  CincinnaO-­‐Middletown	
  MSA	
  was	
  

al	
  pace	
  between	
  2000	
  and	
  mid-­‐2006.	
  From	
  their	
  peak	
  in	
  2006	
  to	
  the	
  end	
  

09,	
  home	
  prices	
  fell	
  by	
  18	
  percent	
  in	
  CincinnaO,	
  approximately	
  half	
  the	
  

of	
  31	
  percent.	
  	
  The	
  net	
  effect	
  for	
  CincinnaO	
  has	
  current	
  home	
  prices	
  

000,	
  compared	
  to	
  current	
  prices	
  where	
  they	
  were	
  at	
  the	
  beginning	
  of	
  

at-­‐sales	
  HPI	
  that	
  excludes	
  distressed	
  sales	
  shows	
  that	
  CincinnaO	
  house	
  

evels	
  without	
  these	
  discounted	
  sales.	
  	
  

has	
  improved	
  since	
  2010.	
  Rental	
  vacancy	
  rates	
  in	
  CincinnaO	
  have	
  

naOon	
  since	
  the	
  la^er	
  part	
  of	
  2008.	
  According	
  to	
  Reis	
  Inc.,	
  the	
  overall	
  

was	
  4.9	
  percent	
  in	
  the	
  first	
  quarter	
  of	
  2012,	
  down	
  from	
  6.4	
  percent	
  a	
  

n	
  the	
  naOonal	
  average	
  from	
  6.2	
  to	
  4.9	
  percent.	
  During	
  the	
  first	
  quarter	
  

creased	
  by	
  2	
  percent	
  from	
  a	
  year	
  ago	
  to	
  $732.	
  The	
  average	
  rent	
  

t	
  to	
  $1,070	
  during	
  the	
  same	
  period.	
  	
  	
  	
  

80	
  

100	
  

120	
  

140	
  

160	
  

180	
  

200	
  

220	
  

Cincinnati Home Prices Decline 

Although Did Not Experience Run Up of Housing Bubble 

Repeat-­‐Sales	
  House	
  Price	
  Index	
  	
  (Jan	
  2000	
  =	
  100)	
  

CincinnaO-­‐Middletown	
  MSA	
   NaOon	
  

Source:	
  CoreLogic.	
  Metro	
  area	
  HPI	
  

5	
  

6	
  

7	
  

8	
  

9	
  

Rental Vacancy Rates Trend Similar to the Nation 

Quarterly	
  Apartment	
  Rental	
  Vacancy	
  Rates	
  (Percent)	
  

0	
  

1	
  

2	
  

3	
  

4	
  

5	
  

6	
  

7	
  

8	
  

9	
  

CincinnaO	
  MSA	
   NaOon	
  

Source:	
  CoreLogic	
  

Distressed Mortgage Shares Rose Above National Level in 2002; 

Peak and Current Shares Remain Below Nation 

Mortgages	
  90+	
  Days	
  Delinquent	
  (Percent	
  of	
  All	
  AcOve	
  Mortgages)	
  

0	
  

1,000	
  

2,000	
  

3,000	
  

4,000	
  

5,000	
  

6,000	
  

7,000	
  

8,000	
  

9,000	
  

10,000	
  

0	
  

5	
  

10	
  

15	
  

20	
  

25	
  

30	
  

35	
  

40	
  

45	
  

50	
  

2003	
   2004	
   2005	
   2006	
   2007	
   2008	
   2009	
   2010	
   2011	
  

New and Existing Home Sales: Cincinnati Compared to the Nation 

Annual	
  Home	
  Sales	
  (thousands)	
  	
  

NaOon:	
  ExisOng	
  Sales	
  (right	
  axis)	
   NaOon:	
  New	
  Sales	
  (right	
  axis)	
  

CincinnaO	
  MSA:	
  ExisOng	
  	
  Sales	
   CincinnaO	
  MSA:	
  New	
  Sales	
  

Sources:	
  CoreLogic,	
  HUD/Census	
  	
  Bureau,	
  and	
  NaOonal	
  AssociaOon	
  of	
  Realtors	
  

ncies and Foreclosures: 

ggle	
  with	
  high	
  mortgage	
  delinquency	
  and	
  foreclosure	
  levels.	
  As	
  of	
  March	
  

	
  metropolitan	
  areas	
  ranked	
  by	
  share	
  of	
  mortgages	
  at	
  risk	
  of	
  foreclosure	
  (90	
  

osure	
  process)	
  according	
  to	
  LPS	
  Applied	
  AnalyOcs.	
  LPS	
  data	
  also	
  show	
  that	
  

losure	
  increased	
  by	
  5.1	
  percent	
  during	
  the	
  past	
  year,	
  from	
  16,750	
  in	
  

mpared	
  with	
  a	
  naOonal	
  decline	
  of	
  2.4	
  percent	
  during	
  the	
  same	
  

hat	
  the	
  rate	
  of	
  mortgages	
  at	
  risk	
  of	
  foreclosure	
  in	
  CincinnaO	
  had	
  been	
  

ore	
  mid-­‐2008	
  but	
  rose	
  less	
  steeply	
  during	
  the	
  foreclosure	
  crisis.	
  In	
  the	
  first	
  

eclosures	
  where	
  largely	
  associated	
  with	
  unaffordable	
  loan	
  products,	
  

re	
  slowly	
  in	
  CincinnaO	
  -­‐	
  from	
  2.5	
  to	
  3.9	
  percent	
  	
  of	
  acOve	
  mortgages	
  during	
  

the	
  naOon	
  was	
  1.6	
  to	
  4.4	
  percent.	
  Beginning	
  in	
  2009,	
  foreclosures	
  were	
  

and	
  were	
  triggered	
  by	
  loss	
  of	
  income,	
  unemployment,	
  and	
  negaOve	
  equity	
  

erve	
  of	
  Chicago.	
  During	
  this	
  Ome,	
  the	
  share	
  of	
  severely	
  delinquent	
  

nt	
  in	
  early	
  2010,	
  and	
  aier	
  dipping,	
  remains	
  at	
  that	
  level.	
  Severely	
  

Ocally	
  for	
  the	
  naOon,	
  peaking	
  at	
  7.9	
  percent	
  in	
  early	
  2010,	
  but	
  have	
  since	
  

sure	
  compleOon	
  rate	
  since	
  April	
  2009	
  in	
  CincinnaO,	
  at	
  1.9	
  percent,	
  is	
  

percent.	
  Although	
  foreclosure	
  compleOons	
  have	
  been	
  on	
  the	
  decline	
  

	
  compleOons	
  have	
  been	
  relaOvely	
  flat	
  in	
  CincinnaO	
  during	
  the	
  same	
  Ome	
  

conOnue	
  to	
  affect	
  foreclosure	
  compleOons	
  locally	
  and	
  naOonally.	
  

tgages	
  in	
  the	
  CincinnaO	
  MSA	
  are	
  currently	
  underwater	
  –	
  compared	
  to	
  23	
  

nal	
  homeowners	
  and	
  loans	
  potenOally	
  at	
  risk.	
  	
  	
  

foreclosure crisis. In the fi rst years of the crisis when single-family foreclosures where largely 

associated with unaffordable loan products, mortgages at risk of foreclosure rose more 

slowly in Cincinnati - from 2.5 to 3.9 percent of active mortgages during 2007 and 2008. 

The comparable rise for the nation was 1.6 to 4.4 percent. Beginning in 2009, foreclosures 

were increasingly associated with prime loans and were triggered by loss of income, 

unemployment, and negative equity according to research by the Federal Reserve Bank of 

Chicago. During this time, the share of severely delinquent mortgages in Cincinnati rose 

to 5.9 percent in early 2010, and after dipping, remains at that level. Severely delinquent 
 e Obama Administration’s Eff orts to Stabilize the Housing Market and Help American Homeowners | May 2012 U.S. Department of Housing and Urban Development | Office of Policy Development and Research

U.S Department of Housing and Urban Development

U.S. Department of the Treasury

Spotlight on Cincinnati MSA | Page 3

mortgages rose more dramatically for the nation, peaking at 7.9 

percent in early 2010, but have since declined to 6.6 percent. 

Realty Trac data indicate that the foreclosure completion rate since April 

2009 in Cincinnati, at 1.9 percent, is slightly less than the national 

rate of 2.0 percent. Although foreclosure completions have been on 

the decline nationally over the past year, foreclosure completions have 

been relatively fl at in Cincinnati during the same time period; however, 

lender process reviews continue to affect foreclosure completions locally 

and nationally. CoreLogic reports that 25 percent of mortgages in the 

Cincinnati MSA are currently underwater – compared to 23 percent 

nationally - representing additional homeowners and loans potentially 

at risk. 

The Administration’s Efforts to 

Stabilize the Cincinnati Housing 

Market: 

From the launch of the Administration’s assistance programs in April 

2009 through the end of March 2012, nearly 34,000 mortgage 

assistance interventions have been offered to homeowners in the 

Cincinnati metropolitan area. Nearly 20,000 interventions were 

offered through the Home Affordable Modifi cation Program (HAMP) 

and the Federal Housing Administration (FHA) loss mitigation and early 

delinquency intervention programs. An estimated additional 14,000 

proprietary mortgage modifi cations have been offered through HOPE 

Now Alliance servicers. While some homeowners may have received 

help from more than one program, the number of times assistance has 

been offered in the Cincinnati MSA is nearly double the number of 

foreclosures completed during this period (17,900). In addition to offers 

of mortgage aid to homeowners, the Administration’s Neighborhood 

Stabilization Program (NSP) and Hardest Hit Fund have helped to 

stabilize the Cincinnati housing market.

Given over three rounds, the Neighborhood Stabilization 

Program has invested $7 billion nationwide to help localities work 

with non-profi ts and community development corporations to turn tens 

of thousands of abandoned and foreclosed homes that lower property 

values into homeownership opportunities and the affordable rental 

housing that communities need. 

NSP1 funds were granted to all states and selected local governments 

on a formula basis under Division B, Title III of the Housing and 

Economic Recovery Act (HERA) of 2008; NSP2 funds authorized 

under the American Recovery and Reinvestment Act (the Recovery Act) 

of 2009 provided grants to states, local governments, nonprofi ts and a 

consortium of nonprofi t entities on a competitive basis; and NSP3 funds 

authorized under the Dodd–Frank Wall Street Reform and Consumer 

Protection Act of 2010 provided neighborhood stabilization grants to 

all states and select governments on a formula basis. Cincinnati	
  MSA	
  NSP	
  Activity	
  (Housing	
  Units) Projected Completed

NSP1	
  Total 654 477

	
  	
  	
  Clearance	
  and	
  demolition 513 417

	
  	
  	
  Construction	
  of	
  new	
  housing 15 13

	
  	
  	
  Rehabilitation/reconstruction	
  of	
  residential	
  structures 126 47

NSP2	
  Total 127 32

19 15

4 1

Spotlight on the Housing Market in Cincinnati-Middletown, Ohio-Kentucky-Indiana

	
  	
  	
  Clearance	
  and	
  demolition

Constructionofnewhousing

Given	
  over	
  three	
  rounds,	
  the	
  Neighborhood	
  StabilizaJon	
  Program	
  has	
  invested	
  $7	
  billion	
  naEonwide	
  to	
  help	
  

localiEes	
  work	
  with	
  non-­‐profits	
  and	
  community	
  development	
  corporaEons	
  to	
  turn	
  tens	
  of	
  thousands	
  of	
  

abandoned	
  and	
  foreclosed	
  homes	
  that	
  lower	
  property	
  values	
  into	
  homeownership	
  opportuniEes	
  and	
  	
  the	
  

affordable	
  rental	
  housing	
  that	
  communiEes	
  need.	
  	
  

NSP1	
  funds	
  were	
  granted	
  to	
  all	
  states	
  and	
  selected	
  local	
  governments	
  on	
  a	
  formula	
  basis	
  under	
  Division	
  B,	
  Title	
  

III	
  of	
  the	
  Housing	
  and	
  Economic	
  Recovery	
  Act	
  (HERA)	
  of	
  2008;	
  NSP2	
  funds	
  authorized	
  under	
  the	
  American	
  

Recovery	
  and	
  Reinvestment	
  Act	
  (the	
  Recovery	
  Act)	
  of	
  2009	
  provided	
  grants	
  to	
  states,	
  local	
  governments,	
  

nonprofits	
  and	
  a	
  consorEum	
  of	
  nonprofit	
  enEEes	
  on	
  a	
  compeEEve	
  basis;	
  and	
  NSP3	
  funds	
  authorized	
  under	
  the	
  

Dodd–Frank	
  Wall	
  Street	
  Reform	
  and	
  Consumer	
  ProtecEon	
  Act	
  of	
  2010	
  provided	
  neighborhood	
  stabilizaEon	
  

grants	
  to	
  all	
  states	
  and	
  select	
  governments	
  on	
  a	
  formula	
  basis.

In	
  addiEon	
  to	
  stabilizing	
  neighborhoods	
  and	
  providing	
  affordable	
  housing,	
  NSP	
  funds	
  have	
  helped	
  save	
  jobs.	
  Each	
  

home	
  purchased,	
  rehabilitated	
  and	
  sold	
  through	
  the	
  NSP	
  program	
  is	
  the	
  result	
  of	
  the	
  efforts	
  of	
  35	
  to	
  50	
  local	
  

employees.	
  	
  

Overall,	
  a	
  total	
  of	
  $52.7	
  million	
  has	
  been	
  awarded	
  to	
  five	
  NSP	
  grantees	
  in	
  the	
  CinncinaE	
  MSA:	
  	
  the	
  ciEes	
  of	
  

CincinnaE	
  and	
  Middletown,	
  OH;	
  the	
  counEes	
  of	
  Hamilton	
  and	
  Butler,	
  OH;	
  and	
  one	
  consorEum,	
  the	
  CincinnaE-­‐

Hamilton	
  County	
  ConsorEum,	
  led	
  by	
  Hamilton	
  County	
  and	
  including	
  as	
  members	
  the	
  City	
  of	
  CincinnaE,	
  the	
  

CincinnaE	
  Metropolitan	
  Housing	
  Authority	
  (CMHA),	
  Local	
  IniEaEves	
  Support	
  CorporaEon	
  (LISC),	
  and	
  the	
  Model	
  

Group.	
  	
  The	
  four	
  government	
  jurisdicEons	
  received	
  a	
  total	
  of	
  $22.7	
  million	
  in	
  NSP1	
  funds	
  and	
  $6.0	
  million	
  in	
  

NSP3	
  funds,	
  and	
  the	
  consorEum	
  received	
  a	
  total	
  of	
  $24.1	
  million	
  in	
  NSP2	
  funds.	
  Approximately	
  513	
  households	
  

have	
  already	
  benefited	
  from	
  NSP,	
  and	
  acEviEes	
  funded	
  by	
  the	
  program	
  are	
  expected	
  to	
  provide	
  assistance	
  to	
  an	
  

addiEonal	
  920	
  owner	
  and	
  renter	
  households.	
  	
  Examples	
  of	
  how	
  these	
  funds	
  have	
  been	
  put	
  to	
  use	
  are	
  provided	
  

below.	
  	
  

	
  	
  

0	
  

5	
  

10	
  

15	
  

20	
  

25	
  

30	
  

35	
  

40	
  

Mortgage Aid Extended More an 34,000 Times to 

Mitigate Rising Foreclosures 

CincinnaE	
  MSA:	
  CumulaEve	
  Offers	
  of	
  Aid	
  by	
  Source	
  Compared	
  with	
  Foreclosure	
  

	
  Since	
  April	
  1,	
  2009	
  	
  (Thousands)	
  

FHA	
  Loss	
  MiEgaEon	
   Hamp	
  ModificaEons	
   EsEmated	
  Hope	
  Now	
  ModificaEons	
   Foreclosure	
  CompleEons	
  

Note:	
  Data	
  on	
  HOPE	
  Now	
  proprietary	
  mortgage	
  modificaEons	
  are	
  not	
  available	
  at	
  the	
  metropolitan	
  area	
  level.	
  However,	
  HOPE	
  

Now	
  Alliance	
  reports	
  139,300	
  non-­‐HAMP	
  modificaEons	
  since	
  April	
  1,	
  2009	
  in	
  the	
  states	
  of	
  	
  OH,	
  KY,	
  and	
  IN	
  of	
  which	
  10	
  percent	
  

are	
  esEmated	
  by	
  HUD	
  to	
  have	
  occurred	
  in	
  the	
  CincinnaE	
  MSA.	
  

Sources:	
  Departments	
  of	
  HUD	
  and	
  Treasury,	
  HOPE	
  Now	
  Alliance,	
  and	
  Realty	
  Trac.	
  

	
  	
  	
  	
  	
  Mortgage	
  Aid	
  Offers	
  in	
  CincinnaE	
  MSA	
  from	
  April	
  2009	
  through	
  March	
  2012:	
  34,000	
  

	
  	
  	
  	
  	
  Foreclosure	
  CompleEons	
  Over	
  Same	
  Period:	
  17,900	
  	
  

•	
  The	
  City	
  of	
  Middletown	
  was	
  awarded	
  $2.1	
  million	
  under	
  NSP1.

blighted	
  properEes	
  and	
  to	
  rehabilitate	
  properEes	
  that	
  are	
  funcEo

The	
  city	
  has	
  a	
  large	
  vacancy	
  problem,	
  with	
  nearly	
  3000	
  vacant	
  ho

eliminates	
  their	
  destabilizing	
  effect	
  on	
  neighborhoods.	
  The	
  NSP1	
  

rehabilitate,	
  and	
  sell	
  properEes	
  that	
  were	
  deterioraEng,	
  vandaliz

income	
  families.	
  	
  

•	
  The	
  CincinnaJ-­‐Hamilton	
  County	
  ConsorJum	
  has	
  targeted	
  NSP2

populaEon	
  growth,	
  high	
  unemployment,	
  and	
  a	
  weak	
  housing	
  ma

vacancy.	
  The	
  funds	
  have	
  been	
  used	
  for	
  the	
  acquisiEon,	
  demoliEo

owner-­‐occupied	
  units	
  across	
  seven	
  communiEes.	
  One	
  example	
  o

rehabilitaEon	
  of	
  the	
  Elberon,	
  a	
  landmark	
  apartment	
  building	
  in	
  C

prominence	
  in	
  the	
  East	
  Price	
  Hill	
  community.	
  Ajer	
  years	
  of	
  negle

in	
  foreclosure.	
  In	
  partnership	
  with	
  the	
  local	
  non-­‐profit	
  Price	
  Hill,	
  t

conjuncEon	
  with	
  low	
  income	
  housing	
  tax	
  credits	
  to	
  redesign	
  the	
  

affordable	
  senior	
  housing.	
  In	
  another	
  ConsorEum	
  development,	
  k

struggling	
  community	
  was	
  transformed	
  into	
  a	
  desirable	
  neighbor

member,	
  Model	
  Group,	
  demolished	
  15	
  dilapidated	
  mulE-­‐family	
  b

two	
  detached	
  rental	
  conages	
  for	
  low	
  income	
  seniors,	
  thirty-­‐five	
  m

families,	
  and	
  four	
  single-­‐family	
  units	
  for	
  homeowners.	
  In	
  a	
  third	
  C

Metropolitan	
  Housing	
  Authority	
  (CMHA)	
  put	
  NSP2	
  funds	
  to	
  use	
  b

senior	
  living	
  facility	
  in	
  Mt.	
  Healthy.	
  Known	
  as	
  the	
  Reserve	
  on	
  Sout

rental	
  units	
  for	
  residents	
  55	
  years	
  and	
  older	
  when	
  completed	
  in	
  2

affected	
  more	
  than	
  100	
  blighted	
  and	
  foreclosed	
  properEes	
  acros

•	
  Under	
  NSP3,	
  the	
  City	
  of	
  CincinnaJ	
  and	
  Hamilton	
  County	
  were	
  

and	
  county	
  are	
  using	
  a	
  part	
  of	
  these	
  funds	
  in	
  six	
  local	
  communiEe

stabilizaEon	
  acEviEes	
  iniEated	
  under	
  NSP1	
  and	
  NSP2.	
  The	
  city	
  an

profit	
  development	
  organizaEons	
  in	
  this	
  endeavor.	
  	
  

•	
  Using	
  NSP1	
  and	
  NSP3	
  funds,	
  Hamilton	
  County	
  is	
  also	
  working	
  w

single-­‐family	
  homes	
  for	
  low	
  income	
  families	
  in	
  targeted	
  commun

homeowners	
  volunteer	
  their	
  labor	
  in	
  renovaEng	
  the	
  homes,	
  allow

benefit	
  a	
  greater	
  number	
  of	
  households.	
  	
  

The Administration’s Efforts to Stabilize the Cincinnati Housing Market: 

From	
  the	
  launch	
  of	
  the	
  AdministraEon’s	
  assistance	
  programs	
  in	
  April	
  2009	
  through	
  the	
  end	
  of	
  March	
  2012,	
  nearly	
  34,000	
  mortgage	
  assistance	
  intervenEons	
  have	
  been	
  

offered	
  to	
  homeowners	
  in	
  the	
  CincinnaE	
  metropolitan	
  area.	
  	
  Nearly	
  20,000	
  intervenEons	
  were	
  offered	
  through	
  the	
  Home	
  Affordable	
  ModificaEon	
  Program	
  (HAMP)	
  and	
  

the	
  Federal	
  Housing	
  AdministraEon	
  (FHA)	
  loss	
  miEgaEon	
  and	
  early	
  delinquency	
  intervenEon	
  programs.	
  	
  An	
  esEmated	
  addiEonal	
  14,000	
  proprietary	
  mortgage	
  

modificaEons	
  have	
  been	
  offered	
  through	
  HOPE	
  Now	
  Alliance	
  servicers.	
  While	
  some	
  homeowners	
  may	
  have	
  received	
  help	
  from	
  more	
  than	
  one	
  program,	
  the	
  number	
  of	
  

Emes	
  assistance	
  has	
  been	
  offered	
  in	
  the	
  Chicago	
  MSA	
  is	
  nearly	
  double	
  the	
  number	
  of	
  foreclosures	
  completed	
  during	
  this	
  period	
  (17,900).	
  	
  In	
  addiEon	
  to	
  offers	
  of	
  

mortgage	
  aid	
  to	
  homeowners,	
  the	
  AdministraEon’s	
  Neighborhood	
  StabilizaEon	
  Program	
  (NSP)	
  and	
  Hardest	
  Hit	
  Fund	
  have	
  helped	
  to	
  stabilize	
  the	
  Chicago	
  housing	
  

market.	
  

	
  	
  

oreclosure	
  Rate Foreclosure	
  

Completions Foreclosure	
  Rate

0.1% 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  17,900	
   1.9%

0.1% 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  2,693,300	
   2.0%

using	
  Units;

ures	
  since	
  April	
  2009

tion	
  Rates	
  in	
  the	
  Cincinnati	
  MSA

r	
  2012 Since	
  April	
  1,	
  2009

80	
  

100	
  

120	
  

140	
  

160	
  

180	
  

CincinnaO-­‐Middletown	
  MSA	
   NaOon	
  

Source:	
  CoreLogic.	
  Metro	
  area	
  HPI	
  

4	
  

5	
  

6	
  

7	
  

8	
  

9	
  

Year	
  and	
  Quarter	
  

Rental Vacancy Rates Trend Similar to the Nation 

Quarterly	
  Apartment	
  Rental	
  Vacancy	
  Rates	
  (Percent)	
  

CincinnaO	
  Metro	
  Area	
   NaOon	
  

Source:	
  Reis	
  Inc.	
  

0	
  

1	
  

2	
  

3	
  

4	
  

5	
  

6	
  

7	
  

8	
  

9	
  

CincinnaO	
  MSA	
   NaOon	
  

Source:	
  CoreLogic	
  

Distressed Mortgage Shares Rose Above National Level in 2002; 

Peak and Current Shares Remain Below Nation 

Mortgages	
  90+	
  Days	
  Delinquent	
  (Percent	
  of	
  All	
  AcOve	
  Mortgages)	
  

metropolitan	
  areas	
  ranked	
  by	
  share	
  of	
  mortgages	
  at	
  risk	
  of	
  foreclosure	
  (90	
  

sure	
  process)	
  according	
  to	
  LPS	
  Applied	
  AnalyOcs.	
  LPS	
  data	
  also	
  show	
  that	
  

losure	
  increased	
  by	
  5.1	
  percent	
  during	
  the	
  past	
  year,	
  from	
  16,750	
  in	
  

mpared	
  with	
  a	
  naOonal	
  decline	
  of	
  2.4	
  percent	
  during	
  the	
  same	
  

hat	
  the	
  rate	
  of	
  mortgages	
  at	
  risk	
  of	
  foreclosure	
  in	
  CincinnaO	
  had	
  been	
  

ore	
  mid-­‐2008	
  but	
  rose	
  less	
  steeply	
  during	
  the	
  foreclosure	
  crisis.	
  In	
  the	
  first	
  

closures	
  where	
  largely	
  associated	
  with	
  unaffordable	
  loan	
  products,	
  

e	
  slowly	
  in	
  CincinnaO	
  -­‐	
  from	
  2.5	
  to	
  3.9	
  percent	
  	
  of	
  acOve	
  mortgages	
  during	
  

he	
  naOon	
  was	
  1.6	
  to	
  4.4	
  percent.	
  Beginning	
  in	
  2009,	
  foreclosures	
  were	
  

and	
  were	
  triggered	
  by	
  loss	
  of	
  income,	
  unemployment,	
  and	
  negaOve	
  equity	
  

erve	
  of	
  Chicago.	
  During	
  this	
  Ome,	
  the	
  share	
  of	
  severely	
  delinquent	
  

nt	
  in	
  early	
  2010,	
  and	
  aier	
  dipping,	
  remains	
  at	
  that	
  level.	
  Severely	
  

cally	
  for	
  the	
  naOon,	
  peaking	
  at	
  7.9	
  percent	
  in	
  early	
  2010,	
  but	
  have	
  since	
  

sure	
  compleOon	
  rate	
  since	
  April	
  2009	
  in	
  CincinnaO,	
  at	
  1.9	
  percent,	
  is	
  

percent.	
  Although	
  foreclosure	
  compleOons	
  have	
  been	
  on	
  the	
  decline	
  

	
  compleOons	
  have	
  been	
  relaOvely	
  flat	
  in	
  CincinnaO	
  during	
  the	
  same	
  Ome	
  

conOnue	
  to	
  affect	
  foreclosure	
  compleOons	
  locally	
  and	
  naOonally.	
  

tgages	
  in	
  the	
  CincinnaO	
  MSA	
  are	
  currently	
  underwater	
  –	
  compared	
  to	
  23	
  

nal	
  homeowners	
  and	
  loans	
  potenOally	
  at	
  risk.	
  	
  	
  

In addition to stabilizing neighborhoods and providing affordable housing, NSP funds have 

helped save jobs. Each home purchased, rehabilitated and sold through the NSP program is 

the result of the efforts of 35 to 50 local employees. 

Overall, a total of $52.7 million has been awarded to fi ve NSP grantees in the Cincinnati 

MSA: the cities of Cincinnati and Middletown, OH; the counties of Hamilton and Butler, OH; 

and one consortium, the Cincinnati-Hamilton County Consortium, led by Hamilton County 

and including as members the City of Cincinnati, the Cincinnati Metropolitan Housing 

Authority (CMHA), Local Initiatives Support Corporation (LISC), and the Model Group. The 

four government jurisdictions received a total of $22.7 million in NSP1 funds and $6.0 

million in NSP3 funds, and the consortium received a total of $24.1 million in NSP2 funds. 

Approximately 513 households have already benefi ted from NSP, and activities funded by 

the program are expected to provide assistance to an additional 920 owner-occupied and 

renter households. Examples of how these funds have been put to use are provided below. 

• The City of Cincinnati and Hamilton County were awarded a total of $10.5 

million in NSP1 funds. A portion of these funds has been targeted towards ten city and 

15 county neighborhoods which were statistically identifi ed as having the greatest 

need. The funds have had the effect of stabilizing these communities through three 

major activities: the purchase and redevelopment of properties to increase affordable 

homeownership, the creation of affordable rental housing, and hazard abatement and 

demolition of blighted properties. In total, NSP1 funds have affected more than 621 

blighted and foreclosed units across this region.

• The City of Middletown was awarded $2.1 million under NSP1. The funds have 

been used to demolish blighted properties and to rehabilitate properties that are 

functionally obsolete and visibly deteriorating. The city has a large vacancy problem, 

Foreclosure Completi on Rates in the Cincinnati MSA

Area

First Quarter 2012 Since April 1, 2009

Foreclosure 

Completi ons

Foreclosure 

Rate

Foreclosure

Completi ons

Foreclosure 

Rate

Cincinnati 

MSA 1,300 0.1% 17,900 1.9%

Nati on 185,500 0.1% 2,693,300 2.0%

Note: Foreclosure Rates as Percent of All Housing Units; Data through

March 2012 for Foreclosures since April 2009

Source: Realty Trac and Census Bureau
 e Obama Administration’s Eff orts to Stabilize the Housing Market and Help American Homeowners | May 2012 U.S. Department of Housing and Urban Development | Office of Policy Development and Research

U.S Department of Housing and Urban Development

U.S. Department of the Treasury

Spotlight on Cincinnati MSA | Page 4

with nearly 3,000 vacant housing units; removing blighted properties 

eliminates their destabilizing effect on neighborhoods. The NSP1 funds 

have also been used to purchase, rehabilitate, and sell properties that were 

deteriorating, vandalized, and a source of frequent crime to low income 

families. 

• The Cincinnati-Hamilton County Consortium has targeted NSP2 

funds to areas where stagnant population growth, high unemployment, and 

a weak housing market have led to high foreclosure and vacancy. The funds 

have been used for the acquisition, demolition, and redevelopment of rental 

and owner-occupied units across seven communities. One example of the 

Consortium’s work is the rehabilitation of the Elberon, a landmark apartment 

building in Cincinnati that had once held a place of prominence in the 

East Price Hill community. After years of neglect, the building was blighted, 

vacant and in foreclosure. In partnership with the local non-profi t Price Hill, 

the Consortium utilized NSP2 funds in conjunction with low income housing 

tax credits to redesign the historic building into 37 units of affordable 

senior housing. In another Consortium development, known as “Villas 

of the Valley,” a struggling community was transformed into a desirable 

neighborhood. In this project, the Consortium member, Model Group, 

demolished 15 dilapidated multi-family buildings and replaced them with 

42 detached rental cottages for low income seniors, 35 multi-family rental 

units for low income families, and four single-family units for homeowners. 

In a third Consortium project, the Cincinnati Metropolitan Housing Authority 

(CMHA) put NSP2 funds to use by beginning construction on an affordable 

senior living facility in Mt. Healthy. Known as the Reserve on South Martin, 

the complex will include 60 rental units for residents 55 years and older 

when completed in 2012. In total, the NSP2 funds have impacted more 

than 100 blighted and foreclosed properties across the region.

• Under NSP3, the City of Cincinnati and Hamilton County were 

awarded a total of $4.6 million. The city and county are using a part of 

these funds in six local communities to continue the implementation of the 

stabilization activities initiated under NSP1 and NSP2. The city and county 

are collaborating with local non-profi t development organizations in this 

endeavor. 

• Using NSP1 and NSP3 funds, Hamilton County is also working with 

Habitat for Humanity to rehabilitate single-family homes for low income 

families in targeted communities. As part of the program, the future 

homeowners volunteer their labor in renovating the homes, allowing the 

NSP development subsidy to benefi t a greater number of households. 

As part of the State of Ohio’s housing recovery efforts, the Restoring Stability: 

A Save the Dream Ohio Initiative helps Ohio homeowners struggling to 

make their monthly house payments or those who have already fallen behind on 

their mortgage. Through the program, the Ohio Housing Finance Agency (OHFA) 

is administering $570 million from the Administration’s Hardest Hit Fund to 

help families avoid foreclosure. 

The Restoring Stability programs include:

Rescue Payment Assistance: The Rescue Payment Assistance program 

provides payments to mortgage servicers to help delinquent homeowners who 

can demonstrate a fi nancial hardship become current on their mortgages. The 

payments can cover principal, interest, fees, delinquent taxes or escrow shortage 

and homeowners insurance. Homeowners need to demonstrate the ability 

to make future mortgage payments for at least six months. Rescue Payment 

Assistance are structured as a zero-interest, deferred payment loan that is forgiven 

over fi ve years, or repaid from sales proceeds if the home is sold sooner.

Mortgage Payment Assistance: This program provides up to 15 months of 

mortgage payments for unemployed and underemployed homeowners. Mortgage 

Payment Assistance is structured as a zero-interest, deferred payment loan that 

is forgiven over fi ve years, or repaid if the home is sold or the loan is refi nanced 

sooner.

Mortgage Modifi cation with Contribution Assistance: The program 

provides a payment to mortgage servicers to reduce a participating homeowner’s 

mortgage principal in connection with a modifi cation. As a result of this assistance, 

the homeowner should be able to qualify for a loan modifi cation through the 

Administration’s Home Affordable Modifi cation Program (HAMP) or other 

programs that can make the monthly mortgage payment more affordable. The 

assistance provided by Restoring Stability is structured as a zero-interest, deferred 

payment loan that is forgiven over fi ve years, or repaid if the home is sold or the 

loan is refi nanced sooner.

Transitional Assistance: The Transitional Assistance program provides 

homeowners who cannot sustain homeownership with an alternative to foreclosure 

by offering an incentive to mortgage servicers to complete short sales or deedin-lieu of foreclosure agreements. Transitional Assistance allows homeowners 

to exit their homes if they have exhausted all other options for maintaining 

homeownership or if they need to relocate to gain meaningful employment. If 

necessary, the plan may also make an incentive payment to a second lien holder 

to release other liens on the property. 

Lien Elimination Assistance: This program provides a payment to a 

participating homeowner’s mortgage servicer and other lien holders to extinguish 

existing liens. To qualify for Lien Elimination Assistance, the servicer must agree to 

release the lien and the homeowner must demonstrate the ability to stay current 

on any remaining liens attached to the property, property taxes and homeowner’s 

insurance. The assistance provided by Restoring Stability is structured as a zerointerest, deferred payment loan that is forgiven over fi ve years, or repaid if the 

home is sold or the loan is refi nanced sooner.

To date, over 150 mortgage servicers have agreed to participate in at least one of 

the Restoring Stability programs. The programs make extensive use of local HUDapproved housing counseling agencies to help homeowners access the program 

and apply for assistance. Ohio homeowners who believe they may be eligible 

can visit www.savethedream.ohio.gov. Ohio has these funds available until 2017 

(or until all funds are utilized to assist struggling homeowners) to prevent avoidable 

foreclosures.

Cincinnati MSA NSP Acti vity (Housing Units) Projected Completed

NSP1 Total 654 477

Clearance and demoliti on 513 417

Constructi on of new housing 15 13

Rehabilitati on/reconstructi on of residenti al structures 126 47

NSP2 Total 127 32

Clearance and demoliti on 19 15

Constructi on of new housing 4 1

Rehabilitati on/reconstructi on of residenti al structures 104 16

NSP3 Total 139 4

Clearance and demoliti on 80 4

Rehabilitati on/reconstructi on of residenti al structures 59 0