Governor Beshear Signs $223 Million Check for Rental Home Construction
In a significant step towards affordable housing solutions, Governor Andy Beshear has signed a $223 million check intended to fund the construction of over 950 new rental units in Kentucky. The focus of this initiative will render help especially to those areas severely affected by the recent tornadoes and floods.
Filling the Gap in the Housing Market
Governor Beshear acknowledged the present gap in the housing market, a worry that had given him multiple sleepless nights. The allocated fund will fuel 11 housing projects throughout Christian, Graves, Hopkins, and Warren counties in an effort to help low-income families find affordable housing.
However, the need for more rental units is not confined to these four counties. Recent surveys have shown that Kentucky as a whole is in dire need of housing. Wendy Smith from the Kentucky Housing Corporation highlighted, “We discovered that over 200,000 units are needed across Kentucky. Every county needs units.”
Inflation and Low Vacancy Rates
With inflation on a steady rise and a proportional increase in rental prices, the number of people unable to find affordable housing in Kentucky is continually growing. Housing experts commonly assess the housing situation via vacancy rates. Andrew Bates with the Federation of Appalachian Housing Enterprises revealed, “Our rental vacancy rate right now is about 3%, which indicates a market that is increasingly tightening which of course puts upward pressure on rents.”
Whilst the average rental vacancy rate falls somewhere between 5% to 10%, Kentucky’s rate sits considerably lower, indicating a stringent situation for potential renters.
In the Search for Solutions
Both Smith and Bates concur that increasing construction across the state is vital to tackling the housing problem. Smith pointed out, “We need more construction of single-family homes and multi-family apartments all over the state.” She added that a boost in supply would naturally lead to a decrease in cost, enabling more people to find suitable living arrangements.
Aiming for Affordable Housing
The rental shortage has been a longstanding issue in Kentucky, but this recent move by Governor Beshear indicates an affirmative stance by the state authorities towards bridging the gap. As the construction process is set to commence, Kentucky looks forward to a more vibrant and low-stress rental housing market in the future, particularly for low-income families as well as those affected by recent natural disasters.
