Community Connections News Release

Housing Issues Affect Economic Growth, Quality of Life

January 6, 1997

by Eileen Ringnalda
Communications Intern
Iowa State University Extension to Communities

Iowa communities are in a Catch-22 situation when it comes to economic development and housing.

"A lot of leaders feel that they will not be able to provide a labor pool for some industries unless they have housing and have people that live in the community to provide labor for industries," said Wayne Kobberdahl, Iowa State University Extension community development specialist.

"Without housing, there are no additional people; we risk losing industry and schools and the tax base is not as great," he said. "Housing is one of the most important challenges communities face."

Most Iowa communities have a tight housing market. Iowa's housing stock is getting old and small towns have not attracted developers.

ISU Extension Community Development specialist Bob Cole agreed that housing is a major issue for Iowa communities. He said that the lack of housing is a limiting factor to economic growth.

Many Iowa communities seeking economic expansion must increase housing to meet the needs of their community and make the town more attractive to prospective businesses. In order to solve this problem, several communities have developed committees to assess the town's housing needs and form a plan of action.

Nora Springs has worked on easing potential problems developers may face in a small town. Cole said Nora Springs formed a task force that works with real estate agents and city government to evaluate current city ordinances. The task force considered alternate ways to finance infrastructures including the possibility of the city paying part of the up front costs. New Hampton has done that, Cole said.

In addition to the economic implications of a tight housing market, many communities in Iowa are equally concerned about housing in regard to the quality of life for current employees.

"People working in Shenandoah and Essex can't find homes in town and are living in another community," said Ron Sanson, Page County Extension director.

Shenandoah has conducted a self-assessment to identify their housing needs. Sanson added that Essex improved its housing availability and the community has a lot more optimism.

The shortage of homes in Iowa communities also raises concerns about quality of life for community residents.

"People can't find what they're looking for," Cole said. He said that he and his wife have not seriously been looking to move, but they would be interested in moving if they could find a home designed with specific features within their price range. However, nothing that meets their criteria has turned up in Mason City the past five years.

"The philosophy that everybody wants to move is not necessarily true, but people are looking to move if housing was available at a reasonable cost with the features they want," he said.

Cole said that all price ranges are having problems finding homes. But Kobberdahl said most people believe that the primary problem is with middle-income housing.

ISU outreach centers and area ISU extension offices have helped communities evaluate options and find new housing alternatives. Community development specialists across the state often facilitate meetings and help organize leadership for housing task force committees.

Cooperative housing is one solution that several Iowa communities are implementing as a result of committee studies and action. Hinton, Onawa and Spirit Lake are a few of the towns tackling their housing problems with this concept.

"What they're doing is to actually form a cooperative like a farm, only for homes. The co-op borrows the money and manages the homes, like a condominium. The home owner then buys into the co-op and owns it that way," Cole said.

Kobberdahl said that ISU Extension offers one of the best housing manuals in the country. Jerry Knox, ISU professor of community and regional planning, wrote a manual to help communities assess housing needs and aid community leaders in developing a plan to improve housing. The Housing Needs Assessment Manual was produced under a contract with the Rural Development Program at the Iowa Department of Economic Development and is distributed by IDED.

Other solutions that have been implemented after community housing assessments include the conversion of a motel into apartment housing and changing city ordinances to accommodate housing development in New Hampton.


Contacts: Terry L. Besser, ISU Extension Sociology, (515) 294-6508
Del Marks, ISU Extension Communication Systems, (515) 294-9807

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Last update: November 18, 1997