Louisville, Kentucky, has launched an innovative program offering abandoned homes for just $1, aiming to revitalize distressed neighborhoods.
31 Homes for $1 Each
The initiative, dubbed “Landbank-A-Rama,” is spearheaded by Louisville’s Landbank Authority. Prospective buyers can attend open house events in five West Louisville neighborhoods: Portland, Park Hill, Parkland, Chickasaw, and Russell.
According to Newsweek, the Louisville/Jefferson County government’s website lists 31 properties available for $1 under the Landbank-A-Rama program. These homes, built between the late 19th and early 20th centuries, feature up to 5 bedrooms and 2 bathrooms.
Front porch of an abandoned home in rural Hopkinsville, Kentucky. (Photo: Getty Images)
However, these homes are in disrepair, with boarded-up windows and overgrown yards due to prolonged abandonment.
High Renovation Costs Deter Buyers
While the $1 price tag is symbolic, buyers face substantial renovation expenses to make the homes habitable. The total cost can exceed $100,000, often surpassing the property’s market value.
For instance, a 5-bedroom home at 2307 West Madison, valued at $35,630, requires $62,750 in structural and exterior repairs. Buyers must prove they have $62,750 in renovation funds and complete repairs within 12 months. The total estimated renovation cost is $168,500.
Buyers must invest heavily in renovations. (Photo: Wlky)
To purchase any of the 31 homes, buyers must submit a detailed budget, construction plan, financial proof, and intended use. All renovations must be completed within 12 months.
High renovation costs concern potential buyers. (Photo: Realtor.com)
Despite the low home prices, residents worry that high renovation costs will exclude average citizens. Metro Council member Tammy Hawkins told The Courier Journal, “Most of these homes are appraised at $100,000 or more, making it difficult for ordinary people to afford.”
Louisville officials emphasize that the program aims to revitalize communities, not displace residents. Priority is given to buyers intending to live in the homes rather than flip or rent them.
Tia Bowman, Executive Director of the Office of Housing and Community Development, stated, “We want to revive entire neighborhoods. We don’t want to displace low-income residents. This initiative creates affordable housing opportunities.”
The Urban Institute notes that abandoned properties foster social disorder, crime, and health hazards, negatively impacting nearby residents’ mental and physical well-being.
