Even though summer may have come to a close, members of the Kentucky Housing Task Force are continuing efforts to aid in the fight against the housing issues currently pressing our commonwealth.
Established by House and Senate leadership after discussions during the 2024 Regular Session, the Kentucky Housing Task Force is a working group focused on studying and reviewing the current access and availability to housing in our commonwealth and across the nation. This process has included a comprehensive look at housing costs, population needs, and housing as it relates to employment. The task force has already held numerous meetings during the legislative interim and gathered a wealth of information from community leaders, industry experts, and data specialists.
In its first meeting, the task force heard from the Kentucky Housing Corporation about the heart of the issue and very much a spotlight of the task force’s efforts: a shortage of appropriate housing.
This shortage has been reiterated numerous times by nearly everyone who has testified before the task force. What has been made clear is that this issue is on that impacts urban, suburban, or rural communities. We are facing an unprecedented supply gap in our housing market that stretches across all 120 counties. This has caused the price to purchase a home as well as the cost of rent to skyrocket well passed the rate of inflation, and may possibly cap our abilities for economic growth in the future. If Kentucky wishes to continue attracting more jobs, community and industry leaders have both made it clear that we must demonstrate that our region has adequate housing options for our workforce.
Those who have testified before the task force have also identified a few key factors that have affected nearly every step of the housing process.
Before ground can even be broken, issues arise. Developers have identified certain zoning regulations as too restrictive such as those governing lot sizes, square footage, and types of housing that may be constructed. Community leaders have noted that the introduction of essential infrastructure on previously undeveloped land has presented cities and counties alike with immensely high costs that often cannot be met without aid. Citizens looking to purchase smaller homes are coming up dry as structures such as duplexes, triplexes, and other middle housing units have not seen growth. With this restriction, many people are being pushed out of the market by immensely high prices outside of their purchasing range.
The 2008 recession and housing market crash still loom large, and has given rise to many of the issues still faced by the housing industry and our communities. Loans for housing construction are harder to obtain due to the hesitancy of financial institutions to invest in the market. Even if these loans are acquired, the construction workforce has still not recovered to pre-2008 levels.
While the facts may seem grim, the task force has also received numerous recommendations regarding how to solves these issues. Cutting density regulations, relaxing zoning restrictions, introducing more manufactured homes, and funding additional infrastructure development will all be considered by the task force when reporting its findings for action during the 2025 General Assembly.
The Kentucky Housing Task Force will hear additional testimony at its next meeting on October 21, before meeting to discuss findings and potential recommendations in November. You can watch all meetings live via KET.org or the Legislative Research Commission’s YouTube channel.
Before I close, I want to make you aware that my official email will be changing as the legislature moves to a new system. Going forward, please use chris.freeland@kylegislature.gov to communicate about issues before the legislature, or if you need assistance with a state program.
As always, I can be reached anytime through the toll-free message line in Frankfort at 1-800-372-7181. You can also contact me via e-mail at chris.freeland@kylegislature.gov and keep track through the Kentucky legislature’s website at legislature.ky.gov.