NEWPORT, Ky. — According to a study, housing availability and affordability are increasingly intertwined with the future economic success of a region.

What You Need To Know

  • Nearly one in four northern kentucky households are paying more than 30% of their income toward housing costs

  • Rising housing costs can be attributed to increased inflation over the last two years

  • Northern Kentucky is building close to 1,600 new houses a year, but they don’t always align with people’s income

  • In a three-county area, workforce job creation is outpacing workforce housing — 2.68 workforce jobs for each housing unit these jobs could afford

As one researcher explained, ensuring people have somewhere to live is critical to grow the region’s economy.

“Historically, the way a region would grow its economy is really through adding new workers. Adding bodies, adding productivity to the market. The reality is, and this is for many communities across the U.S., we are facing a labor shortage,” said Build & Elevate Northern Kentucky Growth Partnership Research Director David McAleese.

Life hasn’t been easy lately, for George Cooper, who says he’s homeless for the first time in his life. Cooper was visiting the Brighton Center in Newport when he spoke to Spectrum News 1.

His sole focus has been on finding a place to live.

“I’ve been looking now for almost three months. And I’m having a problem finding it. Because there’s just nothing out here for rent. And then if you do find it, it’s too high,” he said.

Cooper isn’t alone. And even people who have somewhere to live are struggling.

The most recent American Community Survey five-year estimates show nearly one in four northern Kentucky households are considered housing cost burdened, or paying more than 30 percent of their income toward housing costs. Rising housing costs can be attributed to increased inflation over the last two years.

“When you cross that 30% threshold, you really start to have to make tradeoffs in terms of key necessities. You have to make tradeoffs in where you live,” McAleese said.

That’s something Cooper understands all too well.

“There’s a lot of people that’s in the same boat that I’m in. And it would help to have lower income housing, instead of all $800, $900 a month,” Cooper said. “By the time you pay your rent, you’re starving or your lights are going to be cut off.”

The goal of the BE NKY Growth Partnership is to help grow the economy in Boone, Kenton, and Campbell counties, primarily by getting companies to relocate or grow in those counties.

But McAleese and President and CEO Lee Crume say a lack of income aligned housing stands directly in the way of that goal.

“In order to win that talent, you have to make sure your community can accommodate a wide swath of workers at various wages. And make sure they have the housing that requires,” McAleese said.

Northern Kentucky is building close to 1,600 new houses a year, but they don’t always align with people’s income.

“Teachers and fire persons and police officers, can they afford to live in the community we have and buy a home?” Crume said. “Housing stock is not static. Things are coming into the market. But things are also leaving the market every year.”

According to the Northern Kentucky Area Development District, in all eight counties it serves, only 16% of housing is considered affordable to a median teacher income of $47,000 to $48,000.

The NKADD published a study, which McAleese wrote about. It found that in the three counties served by BE NKY, workforce job creation is outpacing workforce housing — 2.68 workforce jobs for each housing unit these jobs could afford. Workforce jobs, or those earning below $60,000 per year, make up about 60% of occupations in the overall NKADD region.

The study estimates the eight-county NKADD region has a five-year housing production need of 6,650 units, or about 1,330 per year, to support economic development. Of the 6,650 units, half should be tailored toward residents, making up to 60% of the area median household income of $103,600. McAleese said new housing should reflect demographic trends toward smaller and older households by offering more one-and-two-bedroom units.

A number of programs have been established to assist home buyers. For example, the HOME program administered by the Northern Kentucky HOME Consortium is offered in Bellevue, Covington, Dayton, Erlanger, Florence, Ludlow and Newport. 

But BE NKY says, ultimately, it’s not a problem that can be solved overnight.

“It’s just bad out here. And something needs to be done about it,” Cooper said. “Let’s hope the world gets better.”

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