Akron now has the last of three housing studies. And some findings have floored even its experts.
For example, new home loans continue to trickle into the city’s poorest neighborhoods. But in the wealthiest parts of town, banks are approving mortgages like it’s 2006.
In some neighborhoods, median home values are priced at $9,000 or less. “I know we have houses with low values. But to be that low,” said Akron City Planner Jason Segedy, who sat in a crowd of real estate agents, developers, bankers and government administrators at the Akron Urban League on Tuesday morning to listen to a presentation by the reports’ authors.
Researchers from the Reinvestment Fund, a Philadelphia firm hired by the city and JPMorgan Chase to conduct the final housing market analysis, continued to pile on the statistics.
Of the 42,912 workers earning $40,000 or more in Akron, 81 percent (34,742) live somewhere else.
“That shocked me,” Segedy said. Typically a glass-half-full kind of guy, the city planner focused on the next number in that troubling slide: 51 percent of these workers (who make about $10,000 more than the median wage in the city) live less than 10 miles away.
If Segedy and his boss, Mayor Dan Horrigan, are to hit their goal of adding 50,000 residents by 2050 (a 25 percent increase), they won’t have to look far to find working-class families to fill an abundance of cheap housing.
But they’ll have to persuade them to start living where they work, like people used to do in Akron.
‘Where we are’
City administrators in charge of economic development and planning will add Tuesday’s data dump from the Reinvestment Fund to two other studies released earlier this year.
The first study, performed by the city, offered a comprehensive housing strategy that included proposed tax abatements for residential construction. The Greater Ohio Policy Center and DiSalvo Development Advisors released the second study weeks later. In it, Akron’s two dozen neighborhoods were sized up based on housing affordability and readiness to develop.
JPMorgan Chase chipped in $33,643 and the city added $48,783 in federal grants for the final study. It diced Akron into 200 census blocks. Then it put each under a microscope to assess the marketability of housing, which in Akron is paradoxically too affordable.
“There’s good and bad to that,” said Ira Goldstein, president of the Reinvestment Fund. Basically, cheap homes are good for buyers but bad for sellers.
Akron’s current administration has sobered to that reality. “Rather than look at what we’ve done in the past 50 years,” said Horrigan, who attended the first half of the presentation, “this is where we are.”
With the right balance of incentives and public-private collaboration, Goldstein said there’s hope for Akron, which he added isn’t as bad off as many of the 40 cities his firm has analyzed since 2001.
‘Nodes of strength’
Goldstein said each neighborhood must find its “node of strength” — often an anchor institution such as a hospital or university.
This gives stakeholders time to think about how to keep new employees of the Akron City Hospital expansion from living elsewhere or students at the new Akron campus of Stark State from leaving when they graduate.
But nodes of strength, Goldstein continued, also can be nearby jobs or public transit, or natural resources like rivers and lakes. In Baltimore, it’s engaged residents. “I can tell you that the node of strength there is a group of African-American ministers who are working to hold us accountable.”
Mapping Akron
In planning their study, the Reinvestment Fund partnered with 20 organizations: prominent philanthropic foundations from GAR to Knight, big names in private design and development like Testa and DeHoff, quasi-governmental agencies like the Summit County Land Bank, three major banks and Realtors’ associations.
Then, they scrubbed the city and county for home values, sales, construction permits, reports on blight and vacancy, owner occupancy rates and other housing characteristics.
Next, they covered the city by car for three days to validate that what they saw matched municipal records. Adjustments were made. Finally, they dropped the data into census blocks, some with only a couple of hundred residents.
Each was analyzed to create a map of the most and least marketable neighborhoods (about 25 percent of Akron live in each). The other 50 percent of Akron exists in well-maintained neighborhoods that could slide up or down a category with neglect or investment.
In all, nine categories of marketability were mapped.
Diverse neighborhoods such as North Hill contain five or more categories: high home values with no renters; both; cheap housing with high vacancy rates; and other variations.
Lastly, Akron’s 200 housing markets were cross-referenced with property or personal crime, out-of-town landlord ownership (banks and limited liability companies own 15,276 parcels), access to credit based on mortgage applications approvals and denials, single or family dwellings, and income.
Segedy said the full data set will eventually be made available to the public. For now, maps and charts contained in the presentation slides are available online with this article.
The data will be used to make “evidence-based decisions” on where to demolish homes, invest capital, enforce housing codes based on need, prioritize land bank acquisitions and more.
And, of course, how to start building more houses than are torn down each year.
Doug Livingston can be reached at 330-996-3792 or dlivingston@thebeaconjournal.com. Follow on Twitter: @ABJDoug .