JANUARY 2025 | Issue 26

TRI-STATE REGIONAL INSIGHTS

76% of our housing is owner occupied.

The 76% owner-occupied rate in our region, is significantly higher than the national average of 65.9% in 2023. When a large proportion of housing is owner-occupied, it naturally reduces the available rental stock. This can lead to a shortage of affordable rental options for the workforce, particularly those in lower to middle-income brackets. An increased competition for the limited rental units available, can drive up rents, making housing less affordable for workers. High rates of owner-occupancy can also make it difficult for workers to find suitable housing near their workplaces.

28.42% of our housing inventory was built in 1939 or earlier.

The Tri-State Development Region's 28% of pre-1940 housing is more than double the national average of 12.3%. This indicates a much older housing stock in the region compared to the country as a whole, which isn’t uncommon in rural areas. Nevertheless, this older housing stock has implications for housing quality, energy efficiency, and potential renovation needs in the Tri-State Development Region and can present challenges for workforce recruitment. Perceived high cost of maintenance, outdated and sometimes unhealthy features such as lead pipes or lead paint, and lack of modern amenities in older homes may deter workers from relocating to the area. The median year structures were built in the region is 1966, indicating that even "newer" homes may require significant updates. This can be a deterrent for workers who prefer move-in ready properties.

The number of current open positions in the Tri-State region outpaces the number of available homes for sale by nearly 5 times!

We know that every job opening doesn't necessarily translate directly to housing demand. Factors such as local commuting patterns, existing housing occupancy, and the nature of the positions (e.g., part-time, seasonal, or remote work) all influence the actual housing demand generated by new job opportunities. But there's a clear connection between job openings and available housing when it comes to attracting workers to a community. It's a complex relationship, but these factors are intertwined in important ways. A lack of available homes compared to job openings creates a major hurdle for workforce attraction. In our region, we're facing a challenging 5-to-1 ratio of job openings to homes for sale, which sets the stage for significant economic obstacles.

To view data at the county level, click here.

Information about workforce housing development programs in Missouri, Iowa, and Illinois are provided below. More information is available by clicking on the links.

MISSOURI

We are closely monitoring two key pieces of legislation in the 2025 Legislative Session, both of which stem from the dedicated efforts of stakeholders at Missouri Northeast and the Northeast Missouri Regional Planning Commission, right here in our region.

House Bill 245 proposes the creation of workforce housing investment funds, enabling entities to establish such funds to support the development of housing for the workforce. Click on the Bill number to learn more about the provisions currently included in the bill. Track the bill here.

House Bill 240 seeks to establish tax incentives related to workforce and disaster recovery housing, aiming to encourage the development of housing solutions in these critical areas. Track the bill here.

Both bills are sponsored by Representative Greg Sharpe (District 004).

IOWA

There are a number of workforce housing programs offered by Iowa Economic Development.

The Workforce Housing Tax Credit program provides tax benefits to developers to provide housing in Iowa communities, focusing especially on those projects using abandoned, empty or dilapidated properties. A Small Cities set aside for this program is available to eligible projects within the 88-least populous counties in Iowa. The 2025 grant application cycle opens in early February with a June deadline. Awards will be announced in August.

Iowa Thriving Communities Designation is a program to elevate best practices from communities that are going above and beyond to leverage innovative methods to attract housing opportunities for their workforce. Communities obtaining this designation receive incentive points for the Federal Housing Tax Credit and/or Workforce Housing Tax Credit programs. Applications for the 2026 Thriving Communities Designation will be accepted beginning February 10, 2025.

ILLINOIS

Illinois Housing Development Authority provides programs for developers that offers tax credits for qualified projects. Learn more about these programs here.

The Illinois Housing Development Authority (IHDA) administers a Workforce Housing Tax Credit Program that offers tax incentives to developers creating housing in Illinois communities. This program aims to increase the supply of affordable housing for working families.

In December 2024, Governor Pritzker signed an executive order launching a statewide effort to expand housing for working families. Executive Order 2024-03 creates an Illinois Director of Housing Solutions to lead innovative housing solutions, aims to increase attainable, middle-class homes and rental options, and focuses on households in the 80-140% area median income range.

Thank you to those who have taken the opportunity to complete the stakeholder survey. If you haven't shared your perspective with us yet, there is still time! The survey will remain active until the end of the month. This survey is your opportunity to shape how we work together and ensure our efforts align for the benefit of our regional communities.

Thank you for taking a few minutes to complete this short 5-question survey.

Please join us in showing gratitude to our sponsors who generously provided support for the 2024 Tri-State Development Summit and for ongoing programming throughout the year.



Please consider becoming a sponsorship partner. Your investments supports not only the Summit but community-focused activities, resources, and tools all year long.

2024 Presenting sponsor:

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Tri-State Development Culver-Stockton College | culver.edu/tsd

Leslie Sieck, Executive Director lsieck@culver.edu]