From a purely business perspective, it makes no financial sense to build a $200,000 house in a neighborhood where homes typically sell for $130,000 to $150,000. That simple fact is a big reason so many Memphis neighborhoods struggle — the math just ain’t mathin’.
But on Zodiac Road in Whitehaven, 10 newly built homes are challenging that logic by reshaping what affordable housing can mean: new construction, new equity, new beginnings.
City leaders, nonprofit partners and community members celebrated the project’s completion at 3118 Argot Ave. This initiative was made possible through a collaborative effort involving the City of Memphis Housing and Community Development (HCD), United Housing Inc., the Tennessee Housing Development Agency (THDA), Trustmark Bank and Convergence Memphis.
“These homes matter because they give 10 families the chance to build stability and wealth through homeownership,” said Memphis Mayor Paul Young during the August 21 ribbon-cutting ceremony. “Since the 2008 housing crisis, starter homes have nearly vanished from our market. Projects like this help reopen the door to opportunity.”
The largest property in the collection is a roomy 1,800 sq. ft. residence located at 3118 Argot Ave. The three-bedroom, two-bathroom house has a spacious yard. The other nine homes, each 1,500 sq. ft. with four bedrooms and two bathrooms, are situated mere yards away on Zodiac Road.
In the Whitehaven Hills section of Oakhaven, United Housing Inc. is offering something that’s become increasingly rare in Memphis: a brand new, high-quality, affordable starter home.
“We have affordable housing in Memphis,” said Amy Schaftlein, executive director of United Housing. “But we’ve lacked quality new construction, especially for first-time buyers. This development proves we can have both.”
A comeback for starter homes
The homes were funded through a layered package of federal, state and city sources — including the American Rescue Plan Act (ARPA), Memphis’ Affordable Housing Trust Fund, and down payment assistance. HCD’s Affordable Housing Department (AHD), which manages more than a dozen homeownership programs, played a critical role in guiding the project to completion.
“Vacant land is now being transformed into homes that will soon be filled with life, laughter and most importantly stability,” said Young. “This is how we strengthen neighborhoods.”
“Too often in affordable housing, corners get cut to lower costs, but that just leads to more problems for the homeowner down the line,” said Schaftlein. “We didn’t do that here. These homes are built with quality materials — brick, energy-efficient systems — because first-time buyers deserve a solid, low-maintenance home they can count on.”
A vision built on collaboration
Speaking at the event, HCD Director Ashley Cash emphasized how the partnership reflects a broader commitment to reversing neighborhood decline and resisting predatory investor takeovers.
“Without affordable homes, families get stuck in the cycle of renting,” Cash said. “Neighborhoods decline, and we’ve seen outside investors target our communities. But this project, and partners like United Housing, help break that cycle.”
Schaftlein underscored the importance of public-private collaboration in making developments like Zodiac possible.
“Everyone here — the city, the state, our nonprofit partners and banks — helped bring this to life,” she said. “And it took time — getting utilities hooked up, sewer access, permits. That’s the long part. But once the slabs were poured, it only took three months to build these homes.”
‘That’s what affordable housing looks like’
Gesturing to the brick homes behind her, Schaftlein issued a direct challenge to outdated stereotypes.
“To my left, your right — that’s what affordable housing looks like,” she said. “A lot of people have their own assumptions, but this neighborhood hasn’t seen a new starter home in 40 years. It’s time we add new and make it affordable.”
“We have affordable housing in Memphis. But we’ve lacked quality new construction, especially for first-time buyers. This development proves we can have both.”
Amy Schaftlein, executive director of United Housing
United Housing created more than 300 first-time homebuyers in Memphis last year, generating more than $40 million in mortgage financing. Zodiac Homes will add 10 more families and over $2 million in new mortgage activity to that tally.
Schaftlein said the average rent in the area hovers around $1,200 per month. “Over five years, that’s $75,000 paid to a landlord. That same money could be building equity in your own home,” she said.
Closing the appraisal and affordability gaps
Like many infill projects, the Zodiac development faced an “appraisal gap,” where construction costs exceed what the homes are valued at on paper. A new state program through THDA helps developers close that gap. Meanwhile, the City of Memphis provides construction subsidies and buyer-focused down payment assistance to address affordability barriers. It’s a two-sided approach: support for the builder to deliver quality and support for the buyer to access ownership.
“When we combine resources, we can overcome the challenges and help families get into homes,” Schaftlein said. “That’s how we grow wealth at the community level.”
Trustmark Bank, which financed the construction, emphasized the project’s commitment to quality.
“Memphis has affordable housing, but not all of it is quality,” said Trustmark Senior Vice President Richard Marsh. “We’re proud to be part of this, and proud to keep working with United Housing on projects like this one.”
A community-wide blessing
Before the ribbon was cut, Pastor Dianne Young of The Healing Center Full Gospel Baptist Church opened the event with a blessing over the homes.
“Bless these walls so firm and stout that will keep warmth in and trouble out,” she prayed. “Let this be a place of peace.”
State Sen. London Lamar, representatives from the offices of Congressmen Steve Cohen and David Kustoff, and Andrea Hudgens of THDA also offered words of support.
And for Super District 8-3 City Councilwoman Yolanda Cooper-Sutton, relatively new in her elected role, the impact was emotional.
“I almost cried when I drove up and saw it,” she said. “This is affordable housing, yes. But it’s also love. It’s memories. It’s hope. This is what our neighborhoods need and what our people deserve.”
