The final version of a set of strategies developed by regional leaders aimed at addressing housing problems in Northern Kentucky is now available for public review.
A study of housing in Northern Kentucky has revealed troubling trends for housing in the region, with the largest need being for “workforce housing” for households earning between $15 and $25 per hour, with monthly housing costs between $500 and $1,500. The region needs about 3,000 more housing units to provide for people within that income range, according to the study. The demand for one- to two-bedroom rentals and owned properties consistently exceeds their supply, while supply for three and four-bedroom properties consistently exceeds demand. The study suggests that the region needs to build 6,650 housing units to support economic development in the next five years, which equates to 1,330 units per year. Read more here.
Understanding NKY’s housing shortage
Spearheaded by the Northern Kentucky Area Development District and the Brighton Center, a wraparound nonprofit based in Newport, the strategies have been in development since at least 2023, and parties involved in the project teased an early draft version of the so-called menu of options late last year.
The final version of the menu was presented at a special event at the area development district’s office in Florence on Tuesday morning.
“We now come up with some tangible strategies, a menu of options for our communities within the region to consider,” said Seth Cutter, vice president of public affairs with CVG airport. “For our local communities, our cities, our counties, for employers, for philanthropy and nonprofits, for all of the stakeholders in the community to recognize that housing is a workforce development issue, and we cannot grow as a community if we do not address the gap in housing need that we are faced with.”
Many of the conversations related to housing among elected officials and other leaders in the region were spurned by a report from the Northern Kentucky Area Development District, released in September of 2023. The study suggested the largest need was for “workforce housing” for households earning between $15 and $25 per hour, with monthly housing costs between $500 and $1,500.
The region needs about 3,000 more housing units to provide for people within that income range, according to the study. The demand for one-to-two-bedroom rentals and owned properties consistently exceeds their supply, while supply for three and four-bedroom properties consistently exceeds demand.
The study suggests that the region needs to build 6,650 housing units to support economic development in the next five years, which equates to 1,330 units per year.
A steering committee was formed to come up with policy solutions after the report was released, and the Brighton Center began collecting data on the region’s attitudes towards housing to better inform the proposals for solutions. In 36 presentations and 12 interactive events throughout Kentucky’s eight northern-most counties, the Brighton Center’s research revealed some common desires among residents, namely the following:
- increased housing for adults who are downsizing
- more one and two-bedroom units
- priority for first-time homebuyers
- housing closer to where people work
- more landlords who accept housing choice vouchers (also known as Section 8)
- generally, more information about housing availability
- increased access to transportation
Cutter described the situation of what someone who recently migrated to the region might find as they sought out housing.
“Availability drives cost, and right now, with too few products on the market – more is coming – but too few makes the cost barrier really for some people insurmountable, at least right now,” Cutter said.
He pointed to young, single professionals as an example of people who would struggle to find housing in the region “without breaking the bank.” The data presented in the development district’s study gives credence to this.
50 strategies divided into 10 categories were presented at the event. Some strategies discussed include the following:
- General increased awareness and education on the issue
- Establishment of a regional housing trust fund that would help fund small developments that are in demand but disincentivized under current market conditions. Funding could take several forms, including grants, forgivable loans and funding for repairs for voucher-accepting landlords.
- Setting aside publicly-owned property for the development for affordable housing
- Tax credits and other incentives for both buyers and developers which would reduce the cost of developing smaller, more affordable properties
- Expediting permitting and zoning processes, encouraging more mixed-use zoning and increasing zoning availability for townhomes, condos and multi-family units
- Increasing incentives for landlords to take vouchers
- Expanded funding mechanisms to aid first-time home buyers and buyers looking to downsize
- Novel funding vehicles to subsidize utility construction and connection
- More investment into construction and trades education
- Aid and incentives for small developers
You can read descriptions and download a full list of the menu of strategies below.
Speakers at the event agreed that different communities would need to implement different measures depending on their situations.
Officials and elected leaders involved with the committee spoke about various characteristics of the problem. Kenton County Planning and Development Services Executive Director Sharmili Reddy, for instance, talked about how zoning affects the housing supply in the region.
“Zoning in general currently is predominantly single-family housing,” Reddy told LINK nky. “While we do have some areas that do allow for all types of housing, obviously we don’t see that much of that product. Lately, though, we have been seeing more townhomes and condominiums, but how do we get regulations to accommodate new quads and duplexes and all these types of housing that we do have in our community?”
Boone County Judge Executive Gary Moore, on the other hand, talked about housing vouchers, known more commonly as Section 8 vouchers, and how to create mechanisms to encourage more landlords to take them.
“Developments that took vouchers earlier found out that they could leave the voucher program; these are owners of multi-family developments,” Moore said. “They could leave the HUD program, raise their rents because the market inflated so quickly because of the shortage.”
He admitted that many projects that might eventually take vouchers were difficult to get started. The issue came not only in the form of market conditions but also in public perception of housing voucher developments.
“While everybody understands there’s a housing shortage, and they want to see it solved, they don’t want it in their backyard. They don’t want it next to their home,” Moore said. “So, I think being creative, working across the eight counties [in the area development district], we can find locations where the numbers work and the community will support. That might not be in the middle of Florence or in the middle of Fort Thomas, and that’s why I think this regional effort is critical to solving the issue.”
You can read the full write-up on the proposed set of solutions linked below. You can also explore the steering committee’s website, also linked below, to learn more about the housing situation in Northern Kentucky and the proposed solutions for addressing it.