For the rural Midwest to grow, communities need to address housing shortages and affordability issues

FarmdocDaily graph, from 2023 UIUC Rural Vitality Survey

Many rural areas would like to see their populations grow, but housing shortages limit their capacity to attract and keep new residents. "In many communities, housing options are limited both in terms of affordability and type," reports Mark White for FarmdocDaily. "Given relatively slow population growth and an aging population, many Midwestern communities struggle to expand and/or update their housing stock."

University of Illinois researchers conducted studies on rural vitality, including resident surveys. They examined the housing limitations in rural Illinois communities and found "that many residents cannot find housing that meets their budget, needs, or standards," White writes. "Almost two-thirds of survey respondents believed that finding an affordable home within their region was difficult, particularly for renters, and almost 60% of survey respondents believed that their community lacked a variety of housing options. . . . It’s also important to note that these housing challenges are not limited to just northern and central Illinois. Communities around the Midwest and other parts of the country face similar challenges."

Too few homes are being built in the Midwest, and a lack of assisted care providers "suppresses turnover as many older residents stay in their homes longer than they would prefer," White reports. "In addition to shrinking and aging populations, other contributing factors have limited new home construction in farm dependent counties. . . . . For instance, the value of land for agriculture exceeds the value of land for housing development — particularly for housing that meets the needs of first-time homeowners or rental properties."

If rural counties and towns want to attract and keep a fresh workforce with new residents who move in and stay, housing shortages must be intentionally and collaboratively addressed. "Local communities might explore programs to address derelict or distressed properties. Such investments can limit the deterioration of the existing housing stock, which can also stabilize property values to benefit the local tax base," White explains. "Rural communities might also consider efforts to promote more diverse types of residential housing (e.g., multi-family, rental) that sometimes face opposition from existing residents and homeowners. Regardless, no one strategy — nor one local or regional actor — can solve community housing challenges."