FRANKFORT, Ky. — A legislative task force aimed at addressing the commonwealth's housing issues met to discuss solutions and heard the state has a need for all types of housing, from affordable to high-end.

What You Need To Know

  • Kentucky has a shortage of as much as 206,000 housing units, according to the Kentucky Chamber of Commerce 

  • More than 95% of the state's local leaders said there is not enough housing in their communities  

  • Lack of labor, planning/zoning regulations and lack of infrastructure are barriers to construction projects 

  • There is a need for all types of housing, from affordable to McMansions

Lawmakers heard from homebuilders, apartment developers and manufactured home advocates, who all said housing relates to economic development as many employers consider an area’s housing inventory for employees before opening up shop.

According to a report from the Kentucky Chamber of Commerce, a statewide shortage of housing units is as high as 206,000. Nearly 97% of local leaders reported there is not enough housing in their communities.

“If companies don’t have housing or can’t hire employees to come and work, that can put a hamper on our local economies," said Anetha Sanford, Home Builders Association of Kentucky CEO. 

A lack of labor force, planning and zoning, regulations and a lack of infrastructure are all barriers to home construction in Kentucky. Sanford said one possible solution is passing legislation similar to the Indiana Residential Infrastructure Fund.

“It’s low-interest loans for communities to reduce the cost for infrastructure projects related to the development of residential housing in communities based on local job growth and housing-friendly zoning," Sanford said. "They set aside $75 million for that, and it went extremely fast." 

The Apartment Association of Kentucky said the state is missing middle housing: duplexes, townhomes and multiplexes. It said reducing minimum lot sizes, streamlining zoning regulations and permitting would allow smoother construction.

“Lengthy permitting processes add cost, time and uncertainty to housing construction," said J.D. Carey, executive director of Louisville Apartment Association. "Fast-tracking review and permitting of housing is of at no cost for jurisdictions to expand their supply. Permitting delays can kill projects."

Logan Hanes of the Kentucky Manufactured Housing Institute said factory-made homes could be a viable solution due to more efficient construction, less waste and better supply chain, making them more affordable.

“Manufactured homes last year, the average cost was $127,970," Hanes said. "Single section was $86,000; multi-section was $159,000." 

Hanes said the state and the United States Department of Housing and Urban Development hold manufactured homes to similar standards as site-build homes. 

The Chamber of Commerce said if a major investment with 1,000 new jobs came to town, nearly 90% of local leaders in Kentucky said their community is not well-positioned to meet a growing demand for housing.

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