I-68 Regional Alliance Housing Study

I-68 Regional Alliance, PA, MD, WV

What can a region do to turn housing into a viable economic development tool?

SUMMARY

The five counties of the I-68 Regional Alliance—encompassing parts of Pennsylvania, Maryland, and West Virginia—knew that the quality of their housing was having an ever-expanding influence on their ability to attract and retain skilled workers. Eager for direction on how to develop a stronger supply of market-rate housing, they hired czb in early 2022 to study their market and provide strategic guidance.

czb's analysis showed that soft demand had been having a profound impact on the condition of existing housing and on the viability of major new housing investments. A focus on small-scale interventions by coalitions of local stakeholders—employers, institutions, banks, local governments, and economic development agencies among them—was identified as the best course of action to stimulate investment in new housing and reinvestment by existing property owners.

I-68 REGIONAL ALLIANCE HOUSING STUDY

The quality of a region’s housing and its ability to be economically competitive—to attract and retain the skilled workers that businesses and institutions need to thrive—are closely connected issues. The I-68 Regional Alliance Housing Study provides the focus, toolkit, and implementation framework needed to make housing a viable part of the region's economic development strategies.

A focus on households that have already chosen the region

A regional toolkit designed to strengthen housing demand

A framework for local implementation

Problems to Solve and a Regional Housing Toolkit

Across this five-county region, the private market was producing very limited quantities of new and appealing housing. The root cause: soft demand expressed in relatively low home prices, low rents, and low levels of reinvestment by current property owners. With so many apartments and homes in the region that were relatively inexpensive—especially for households making $75,000 or more—very few households were willing to spend what it actually costs to build new homes and apartments, or even to spend what it takes to keep current housing in good repair.

A clear diagnosis of the problems to solve was an important foundation of the Housing Study and a necessary preface to a responsive toolkit of programs and policies.

Clear direction on how to boost housing investments and support economic development goals

The I-68 Regional Alliance Housing Study provides a clear portrait of the region's housing market and the forces that limit desired levels of housing investment. It also makes it clear that there is no magic solution—only the willingness of local stakeholders to prioritize housing as an economic development tool and to commit local resources to overcome the market headwinds created by years of soft demand and underinvestment.