How can a small town offer updated housing when new construction is infeasible?

SUMMARY

The City of Oelwein was concerned that a lack of housing choice was limiting its economic prospects. The housing market had weakened dramatically as the rural Iowa town had been losing population for nearly a century. czb made recommendations for spurring private sector housing activity, whether through new construction or substantial rehabilitation.

Among those recommendations was the removal of dozens of derelict structures while upgrading 130 units in a decade for residents who would commit to living and working in Oelwein--meaningful numbers for a community of only 6,000 people.