CINCINNATI – For most Americans, homeownership is a pathway to generational wealth as owners build equity over time as the value of their property improves. Yet, with high interest rates, a low supply of single-family homes, and a still competitive housing market, that kind of wealth-building can feel out of reach for many.
In Over-the-Rhine, one of Cincinnati’s highest renter-occupied neighborhoods, Cornerstone Renter Equity hopes to provide an alternative opportunity for some of its lifelong renters.
In partnership with local property managers and owners, the program recruits renters and offers them the chance to build up to $2000 a year in equity by working to improve their community and themselves.
Members have to pay rent on time, attend community meetings or volunteer in the neighborhood, and also get credit for taking advantage of financial or health and wellness classes or finding other ways to be a good neighbor.
Lulajeane McBride has been a member for nearly five years, joining after seeing the work pay off for her neighbors. She said the program’s guidance has helped her plan for her future.
“They invest in you by helping you to commit a list of goals that you want to reach before like two years,” she said.
After three years in the program, members become vested and can access some of their equity funds. McBride hopes to save hers up for a down payment on a car. Others use the money to pay down loans, cover bills, or emergency expenses.
As for building that equity, Tonya Riddick, Cornerstone’s financial coach, said the program tries to ensure those equity opportunities are focused on adding value to the neighborhood and the participants. Currently, members can take part in an eight-week cooking course focused on making healthy, quick, and affordable meals.
“We believe if you invest in yourself and invest in your community, you have an opportunity to elevate your standard of living,” Riddick said.
For Anita Thompson, another longtime member of the renter equity program, the most valuable part of membership is that engagement with the community. Living in Over-the-Rhine, one of the most rapidly developing neighborhoods in the city, she said it can feel at times as though renters have little voice.
“But Cornerstone makes sure we’re at all the meetings,” she said. “They involve us in the community. Cause we live here and it’s our home and I enjoy living here.”
According to Cornerstone’s most recent public impact report, the program served 88 households in 2022 and paid out nearly $30,000 to vested members.