FLORENCE, Ky. — Employment growth is surpassing the availability of workforce housing in the Northern Kentucky Area Development District (NKADD) region. A data-driven NKADD analysis suggests a need for a substantial increase in the production of 1- and 2-bedroom units along with more income-aligned units.
While housing production over the past 5 years has catered mainly to traditional family households, the upcoming 5 years should also consider singles and couples, including younger workers and seniors looking to downsize.
NKADD is the administrator of a large data study about housing inventory, cost, and the relationship to economic conditions and jobs in the eight-county region it serves.
In Boone, Kenton, and Campbell counties, there are currently more than 2.5 workforce jobs for each housing unit these jobs could afford. Over the next five years, it is estimated the eight-county region will need to build 6,650 housing units to support economic development.
To meet the region’s needs, 3,260 of these should offer monthly rates of $500 to $1,500 to accommodate those earning between $15 and $25 per hour, and 4,220 units should be one- or two-bedroom units, reflecting the changing demographics and preferences.
NKADD counties operate as both employment centers and bedroom communities, including for employees commuting into Cincinnati. The northern counties are well positioned to absorb higher income household growth but struggle to provide affordable housing for low wage service sector workers who make up a sizeable portion of the employment base.
Boone County contains the region’s largest logistics cluster. This cluster should see continued growth if there is available labor supply and affordable housing that ensures wage competitiveness.
For several months now, NKADD has served as the administrator of a large data study about housing inventory, cost, and relationship to economic conditions and jobs in the eight-county Northern Kentucky region. This study was conducted following a competitive procurement process which resulted in the selection of Stantec, a national consulting firm with a presence in Kentucky, from a field of highly qualified applicants.
This topic and discussion to address housing concerns have been occurring not only at NKADD and its partner organizations but across our region and the commonwealth. The idea for a study originated at NKADD in regional workforce development discussions with local elected officials and planning commissions, Horizon Community Funds, CVG Airport, BE-NKY, Brighton Center, Kentucky Career Center/NKWIB and employers, as we work to better align employers needing talent with jobseekers. NKADD is the fiscal agent for a number of local workforce programs including the federal Workforce Innovation Opportunity Act (WIOA) which funds the NKY Career Center network and training programs.
NKADD’s role in the housing study work is that of facilitator, connector, resource -provider and liaison. The fiscal courts of Boone, Campbell, Carroll, Gallatin, Grant, Kenton, Owen and Pendleton counties, alongside CVG Airport, funded the completion of the NKY Housing Data Study.
The purpose of the study was to establish shared baseline data that all community partners can use for varied purposes. Because of its intended broad usage, the Request for Proposals (RFP) and the topics addressed in the study were developed in collaboration with a number of partners from across the region. NKADD determined that due to the regional nature of our labor shed and transportation network the study encompasses the eight-county region.
“There are many factors that impact economic growth in our region,” Candace McGraw, CEO of CVG Airport. “Workforce is top of mind for all employers, and housing is a fundamental issue for workers. This study points out that housing availability will continue to be a key issue that helps or hinders our region’s growth. I urge local leaders to work toward creative and collaborative solutions to meet this challenge.”
Simultaneously to all this work, United Way of Greater Cincinnati and other partners, including Brighton Center, NKY Chamber, LISC, and several others, convened as well to discuss housing cost and availability in the NKY market. The NKADD will be a subgrantee to Brighton Center in a recent successful grant request to Interact for Health’s Advancing Health Justice grant program.
“There are multiple factors contributing to employers’ ability to attract and retain the workforce they need, and housing is one of those factors,” said Correy Eimer, associate director – workforce for NKADD and director of the Northern Kentucky Workforce Investment Board. “I am excited to have data from this housing study because it provides an objective look at ways housing may be an obstacle for working-age individuals.”
