In Toledo, Ohio, a city once celebrated for its industrial might, working-class residents are grappling with a housing crisis exacerbated by the aggressive purchase of properties by out-of-state investors. As these external players, often operating through complex corporate structures, amass homes in the area, long-standing community members find themselves facing substandard living conditions and a dwindling hope of homeownership.
A Changing Landscape
Berkshire Place, a typical street in Toledo, bears the scars of economic transition. Here, homes once filled with the laughter of children now sit in disrepair, victims of neglect by absentee owners. A recent sale on this street saw a modest three-bedroom house purchased for just $20,000 by J Kushner & Associates, a firm located in Israel. With rental prices soaring to $1,600 per month, the potential for a quick return on investment is evident, leaving local families struggling to afford basic housing.
Despite its unassuming appearance, Toledo’s location and low property prices have attracted a new wave of real estate investors seeking to capitalise on the city’s challenges. Having lost approximately 120,000 residents since its peak in the 1970s, Toledo is now home to many empty, older houses, creating an appealing market for those looking to invest from afar.
The Investor Impact
According to a 2025 report by the Federal Reserve Bank of Cleveland, more than half of the single-family homes purchased by investors in Toledo’s Lucas County from 2020 to 2024 were bought by out-of-state entities. Daniel Hammel, a geography and planning expert at the University of Toledo, notes that regulatory changes following the 2008 financial crisis have made it increasingly difficult for moderate-income families to secure loans, further opening the door for investors.
Riparian Management LLC, a Maryland-based company, exemplifies this trend, acquiring over 115 properties within a two-month span last year. Local residents have reported issues with substandard living conditions, highlighting the struggles faced by tenants under neglectful management. George Thomas, the CEO of the Fair Housing Center in Toledo, emphasises that many tenants are left with limited options when dealing with absentee landlords.
A Web of Ownership
The complexity of property ownership in Toledo has made it challenging to pinpoint who truly holds the keys to these homes. Many investors operate through limited liability companies (LLCs), obscuring their identities and complicating accountability. This lack of transparency has raised concerns over the condition of housing and the eviction rates, with outside investors reported to evict tenants at a higher rate than local owners.
In a city where economic stability is crucial, the influx of external investors raises questions about the long-term viability of homeownership for Toledo’s working families. With companies like J Kushner & Associates and others from across the globe showing interest, the local housing market is shifting in ways that could have lasting impacts.
Political Ramifications
As the midterm elections approach, politicians are beginning to take notice of the growing unease surrounding housing affordability. During a recent visit to Toledo, JD Vance hinted at potential measures the Trump administration may take to curb large corporations from acquiring residential properties. This reflects a broader concern among voters about rising living costs and the impact of absentee ownership.
Amid these discussions, it is essential to recognise that while institutional investors may not be breaking the law, their actions are contributing to a landscape where homeownership feels increasingly unattainable for many. Hammel warns that the barriers to homeownership extend beyond mere housing costs; the ability to secure a mortgage remains a significant hurdle for low- and moderate-income families in Toledo.
Why it Matters
The situation in Toledo is a microcosm of a larger national issue, where the dream of homeownership slips further from the grasp of working families. As cities like Toledo struggle with the consequences of external investment, the fabric of local communities is at risk of fraying. This crisis underscores the urgent need for policies that protect residents from being priced out of their own neighbourhoods, ensuring that homeownership remains a realistic aspiration for all, not just a privilege for those who can afford to invest from afar.
