Covington VS Cincinnati

We’ve received lots of questions as to why we’re focusing more on Covington, KY instead of Cincinnati- and what made us pivot.

After many trips to both cities, studying them for over 18 months, and now living in one- we have a granular understanding of both markets and the synergies/differences across them.

These thoughts and findings are detailed below:

The Covington-Cincinnati Relationship: Real Estate, Employment, & Urban Appeal

Covington has long had a symbiotic relationship with Cincinnati.

For real estate investors and developers, understanding this dynamic is key to appreciating Covington's value proposition, particularly in the context of employment, livability, and historic appeal.

1. Economic Interdependence and Employment Centers

Cincinnati serves as the employment engine for the region with corporations such as Procter & Gamble, Kroger, Fifth Third Bank, and Cincinnati Children's Hospital, which are headquartered or have significant operations in the urban core.

This concentration of corporate and healthcare employment within a 5-10 minute drive of Covington provides a stable base of demand for housing, particularly rental housing.

Many Covington residents, especially professionals in healthcare, finance, and technology, commute daily across the Roebling Suspension Bridge or via I-75/I-71 into downtown Cincinnati.

During warmer months, those living in the urban core often walk to work.

Covington itself has also developed its own growing employment base, especially in the creative, manufacturing (ProMach, Ashland), and service sectors (St. Elizabeth’s, Crown Services).

This is highlighted by the recent announcement from Fischer Homes (the region’s largest home builder and 31st in the country), detailing the relocation of their corporate headquarters to downtown Covington- bringing over 350 high paying jobs to the area.

Additionally, the life sciences industry has been growing in the city with many corporations either entering the market or growing their existing footprint.

Some Examples:

CTI Clinical Trial & Consulting Services

Headquarters: RiverCenter Towers, Covington

Employees: Approximately 400 currently, with plans to add 500 more by 2027

Focus: Global clinical research services, specializing in rare diseases, cell and gene therapies, and complex programs for critically ill patients

Gravity Diagnostics

Location: Russell Street, Covington

Employees: Approximately 465

Specialization: CAP Accredited and CLIA Certified laboratory providing innovative testing in areas like COVID-19, toxicology, and pharmacogenomics

Growth: Expanded into a 77,000-square-foot facility, marking a 1,000% increase in space

Thermo Fisher Scientific

Expansion: Investing nearly $48 million to establish a new lab operation in Covington’s Latonia neighborhood

Job Creation: Expected to create 69 additional jobs

Purpose: Expanding central laboratory operations to accelerate pharmaceutical and biotech customers’ delivery of safe, effective medicines

Startups and digital firms are also increasingly choosing Covington for its lower costs, subsidies (which the city is great at), historic buildings, and walkable neighborhoods that appeal to younger professionals.

Specifically, Co-Hatch (a co-working concept) just opened in Covington and is nearing full occupancy just after 3-4 months.

An incubator, SparkHaus (opening in late 2025/2026), is currently being developed downtown and will span more than 40,000 square feet - making it the largest dedicated entrepreneurship hub in Kentucky.

2. Real Estate Dynamics: Covington as the Alternative Urban Core

Covington has emerged as a compelling alternative to Cincinnati’s Over-the-Rhine and downtown neighborhoods.

Both cities share historic architecture, 19th-century charm, and walkable grids.

However, Covington offers these features with lower price points, less bureaucratic friction, and an overall safer environment (motor vehicle theft rate per 100,000 residents is 4x higher in Cincy).

Investors are drawn to Covington for its strong fundamentals: relatively low acquisition costs, upward-trending rents, and a tenant base seeking urban amenities without the safety and governance concerns seen in Cincinnati.

Notably, many renters in the market are single women- a demographic that often values safety, cleanliness, and community.

Covington's compact, navigable urban environment and responsive local government have made it particularly attractive to this group and continues to attract more.

Side Note: the joke amongst the locals here is: "if you commit a crime here, you better get over that bridge and into Ohio before the troopers get to you."

Public perception of policing is vastly different across the two markets- Covington PD doesn't mess around and that's felt.

3. Urban Livability and the "Cool Factor"

Neighborhoods like Mainstrasse Village, Mutter Gottes, and the Central Business District have become cultural hubs- home to locally owned restaurants, craft breweries/bars, boutique retail, and art spaces.

The city’s emphasis on place making, historic preservation, and pedestrian-first design has paid dividends in attracting both residents and businesses (this is also seen in the ongoing development of the former IRS Site, which will connect the river front to the urban core).

Main Street alone (the main artery) offers a grocery store, retail options, over 8 restaurants, over 10 bars, a theater, bakeries, coffee shops, and countless more- all within a ~200 yard walk.

The walkability of this city fosters a lifestyle that appeals to millennials, Gen Z professionals, and downsizing boomers alike (I closely track all sales in the market and have been amazed by the soaring condo prices, $1M+, as more boomers start to buy in Northern Kentucky).

4. Public Policy and Governance

Covington's local government has a reputation for being developer-friendly while maintaining a clear focus on historic preservation and neighborhood character (the neighborhood organizations in Kentucky are much easier to work with).

In contrast, Cincinnati’s more complex political dynamics, zoning challenges, and higher property taxes (~2.5% in Cincinnati vs. ~1.6% in Covington) can slow down development.

The result is a smoother path to entitlements, renovations, and adaptive reuse projects in Covington.

Conclusion: A Strategic Node in the Greater Cincinnati Ecosystem

Covington is not merely a peripheral city; it's a vital node in the Greater Cincinnati ecosystem.

Its proximity to Cincinnati's job centers, coupled with its historic charm, walkability, and pragmatic governance, makes it uniquely positioned for growth.

For investors, Covington offers many of the cultural and architectural benefits of Cincinnati without the associated drawbacks.

It stands as a case study in how smaller cities adjacent to major metros can harness their assets to create vibrant, livable communities - and compelling investment opportunities.

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Broken Arrow Holding is currently focused on Covington, where we see the most promising opportunities, but remains open to exploring future possibilities in Cincinnati as they arise.

We are excited to continue building our team and expanding our portfolio in this dynamic and unique region.