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Graphic from the Kentucky Housing Corporation

Ky chamber sees housing shortage as economic priority

Aug 6, 2025 | 3:27 PM

By MICHAEL CRIMMINS
Glasgow News 1

From negatively impacting a community’s quality of life, moderately increasing the workload on law enforcement and impacting the economic opportunities available, a housing shortage affects nearly every facet of a community.

As previously reported, the Kentucky Housing Corporation stated that as of 2024 Barren County needed 1,846 housing units with an overall increase expected in the coming years.

Business leaders from across the commonwealth urged lawmakers to see Kentucky’s housing shortage as a top economic priority during two legislative hearings this week: the General Assembly’s Interim Joint Task Force on Housing and the Interim Joint Committee on Economic Development and Workforce Investment

At the latter, Kentucky Chamber of Commerce Vice President of Policy Charles Aull pointed out several possible reasons for the statewide shortage, namely fewer homes being built after the Great Recession, rising construction costs, a lack of skilled workers, outdated zoning policies, and increasing regulatory burdens and infrastructure costs that builders are absorbing. Many of these factors can compound on one another, Aull said.

Chamber members also urged stronger investment in the workforce and greater promotion of existing training and scholarship programs, specifically in construction and skilled trades. The Barren County Economic Authority states there are 19,458 people in the workforce. The county is also one of 43 counties designated as a “Work Ready Community,” which shows high graduation rate and skilled labor force.

Locally, the Joint City-County Planning Commission has taken steps to help remedy the housing shortage. New language regarding a Glasgow-specific housing initiative and qualified manufactured homes has been added to the zoning ordinances.

More than half — 66.2 percent — of local leaders that attended the Kentucky Chamber 2024 Housing Tour said they believed housing shortages are “holding back economic growth and opportunity” in their communities with 18 percent responding that they were unsure, according to the chamber’s Building a Foundation for Growth report.

“In a statewide survey, 90 percent of local leaders said their region couldn’t support a 1,000-job project due to lack of housing,” Public Affairs Director for the Kentucky Chamber John Hughes said. “Housing is no longer just a local planning issue—it’s a major part of Kentucky’s economic future.”

Aull and Hughes recommended that lawmakers create a Residential Infrastructure Fund—similar to a program in Indiana that gives low-interest loans to local governments to cover the cost of roads, water lines, and other infrastructure needed for new housing developments — that has already helped build thousands of new homes, including in rural areas.

“If we’re serious about attracting investment, keeping young talent, and growing our local economies, housing must be a priority,” Hughes said. “Kentucky has the land and the momentum—now we need the leadership to meet the moment.”

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