Elizabethtown Faces Housing Crisis Amid $5.8 Billion Battery Plant Development

Elizabethtown, Kentucky is facing significant housing challenges as it prepares for the arrival of a massive $5.8 billion battery plant, BlueOval SK, which is set to bring approximately 5,500 jobs to the area. While this development promises economic growth, it has exacerbated an existing housing shortage in the city.

The population of Elizabethtown is around 32,000, with over half of residents renting their homes. Historically, the city has issued only about 100 housing permits annually. As a result, the influx of workers from the new plant raises urgent questions regarding where they will reside.

Mayor Jeff Gregory highlighted the increasing demand for housing, stating that, even before construction begins, local rents are rising significantly. He reported that the price of vacant land has surged from $7,000 to $35,000 per acre as developers rush to capitalize on the housing demand spurred by the factory. Gregory shared his own difficulties, revealing that his 24-year-old son, despite a steady income, still lives at home due to the high cost of renting.

The housing issue is not confined to Elizabethtown. Nearby Shelby County, which has a population of around 48,000, is also preparing for a new factory to produce lithium-ion cell batteries that will create nearly 1,600 jobs. A recent study indicates that Shelby County already requires an estimated 1,870 new housing units to meet current demands, a number likely to increase with new job opportunities.

The Kentucky Housing Task Force has been convened to address this pressing matter. The task force, comprised of lawmakers, local leaders, and housing advocates, has been gathering input since June. Their discussions have focused on finding solutions for Kentucky’s housing deficit, which currently stands at over 206,000 units statewide and could worsen to 287,000 units within the next five years if trends continue.

State Senator Jimmy Higdon, a member of the task force, noted that this housing crisis transcends political divisions. “Everybody realizes there’s a serious issue here, and everyone acknowledges that government needs to be involved,” he stated. Likewise, State Representative Lindsey Burke emphasized the need for a comprehensive approach to tackle the housing shortage.

The housing shortfall affects major urban areas, with over 90,000 units needed in cities like Louisville and Lexington. Local leaders report that 90% of them indicate insufficient housing to support unexpected economic projects that generate new jobs. Furthermore, in many counties, more than half of workers commute from neighboring areas, highlighting a critical need for local housing solutions.

The task force has proposed various strategies to address the housing crisis, such as revising zoning laws to accommodate denser housing forms, introducing state tax credits for affordable housing projects, and exploring manufactured and modular housing options. However, without substantial legislative support and funding, the long-term viability of these solutions remains uncertain.

As Kentucky prepares to reconvene its General Assembly in January, addressing the housing crisis is expected to take center stage. The potential legislative solutions could pave the way for increased affordability and availability of housing, which is crucial not just for Elizabethtown, but for communities across the state.