Affordable housing is our region’s big challenge
It’s been just over a year since the Northern Kentucky Area Development District (NKADD) released its housing gap analysis in September 2023. The report looked deeply at the type of housing units available throughout NKADD’s eight-county region and found the inventory of available units is insufficient at all price points. In fact, Northern Kentucky needs 6,650 additional housing units over five years to keep up with its economic growth. At its current pace, workforce job creation is out-pacing workforce housing availability. This is a critical concern for workforce development because it is difficult to find and retain workers without appropriate housing to meet their needs. As NKADD Executive Director Tara Johnson-Noem shared an often repeated phrase in the workforce housing space, “Home is where jobs go to bed at night.”
Chart showing housing units relative to wages
The study specifically highlighted the need for more income-aligned homes – in other words, homes that meet the needs of the current and future residents based on price points that fit their budget. While the study found supply lacking at the highest price points as well, the need is greatest to support “workforce jobs,” which are positions with an average annual salary below $60,000. Currently, 60 percent of occupations inside our eight-county region fall into this range. Workforce jobs are held across age groups and life stage, including single people, empty-nesters, and young families. Based on this composition, the region needs a wider variety of housing types at various price points, including: rental, multi-family, and 1-2 bedroom single-family units.
One solution called out in the study is for smaller, attached, multi-family units in the form of townhomes, or other two-four unit homes that fit well in size and scale to single-family neighborhoods. While this style of development is common in older, first-ring suburban neighborhoods, they are often not allowed by newer zoning regulations. Targeting these “missing middle” homes would better account for the diversity of incomes as well as the smaller household sizes reflected in the current workforce while providing cost-effective opportunities for local developers to address the housing gaps shown in the study.
“Over the past five years, 62% of our new housing units have been 3- and 4-bedroom single-family homes. While many of us are at a point in our lives that we need that size home, plenty of other people are currently looking for something smaller, or a neighborhood that’s more walkable to amenities. The study shows that over the next five years, Northern Kentucky’s new development should more closely resemble our existing inventory – giving our community a greater spectrum of options,” Johnson-Noem said. The chart below shows the recommended composition.
Chart showing current stock of housing units by number of bedrooms
The full report is available here. It has been well received, and several work groups comprised of a wide variety of subject matter experts from fields in the residential development industry have started analyzing the results to determine how best to respond. This group will be hosting an event on November 18th to share insights and seek the input of local stakeholders about a menu of options drafted to provide private sector, local non-profits and communities potential strategies to address housing gaps. You can register to attend this free event here.
To discuss housing or workforce development in Northern Kentucky, contact NKY Works at 859.657.WRKS or NKYWorks@NKADD.org.