Cincinnati has a $1.9bn infrastructure fund from selling a railway line, but it cannot be used to address the city's worsening housing crisis due to restrictions imposed by Republican state lawmakers.
Housing crisis deepens despite growing population
Cincinnati's population has grown for the first time in a generation, but housing stock has declined. Mayor Aftab Pureval said, "It's the worst-case scenario for us. Because we're such an old city, we're losing housing stock and not building housing fast enough." The city has seen the highest percentage increase in average rental costs in the US in 2025.
Rail sale created a $1.9bn fund with strings attached
The Cincinnati Southern Railway was sold to Norfolk Southern in 2024 for $1.9bn. The decision was controversial, passing a referendum 52% to 48%. Republican state lawmakers imposed strict restrictions on the fund, limiting its use to repairing or replacing existing infrastructure like streets, sidewalks, and parks. Housing is explicitly excluded.
Political mistrust drives restrictions
Former Republican state representative Bill Seitz said, "Many people had a dim view of whether the current city council would responsibly spend the money, and not just fritter it away on boondoggles. So we limited it to traditional infrastructure improvement." State senator Louis Blessing noted, "There's a kind of ethos that they need to be saved from themselves."
Fund generates millions but can't address housing
The trust fund generates $56m to $58m annually, offsetting about $388 in taxes per household. However, Pureval said, "We sold the railroad because we were facing a $400m deferred capital maintenance bill." The fund represents about $5,000 per resident, but can't be spent on new housing.
Broader conflict between red states and blue cities
This tension reflects nationwide conflicts, such as Ohio's state ban on local gun ordinances. Pureval, who once interned for Republican governor Mike DeWine, said, "It solidified my progressive values, while also showing me that the folks on the other side of the aisle were, to a large degree, just trying to do what they thought was right."
