In all 120 Kentucky counties, families are struggling to find affordable housing. In addition to being a frequently discussed topic in communities across the Commonwealth, the 2024 Blueprint for Kentucky’s Children policy agenda prioritized the development of an interim joint legislative task force to focus on the state’s housing crisis. We are pleased that the legislature established the Kentucky Housing Task Force to study and review the current and future policy needs to address access and availability of housing across the Commonwealth. 

The Housing Task Force is co-chaired by Senator Robby Mills from Henderson and Representative Susan Witten from Louisville. The task force started meeting in June and will continue to convene in the months leading up to the 2025 legislative session to study barriers to affordable housing and identify policies and opportunities to support Kentucky’s housing needs. 

Over the past three meetings, task force members have heard from experts across the state who have highlighted a range of topics critical to Kentucky’s housing landscape. 

Key takeaways include:

  1. Severe Housing Shortage – Kentucky has a shortage of over 200,000 units of housing according to data from Kentucky Housing Corporation (KHC). Factors contributing to this shortage include natural disasters in Western and Eastern KY, rapid economic growth, high interest rates, and insufficient funding for affordable housing. This shortage of housing units (rental and for-sale) affects every county and income level in Kentucky. Testimonies from local leaders representing rural and urban areas, including Louisville to Elliott County, illustrated how this issue impacts both rural and urban communities in Kentucky. 
  2. Impact on Families – The rising cost and availability of housing has made finding and staying in safe, affordable housing difficult for many Kentuckians. 44% of Kentucky renters live in cost-burdened households, spending over 30% of their income on housing. This financial strain leaves less money for essentials like food, child care, and health care, and increases a family’s risk of losing their housing. Without more housing in our state, Kentuckians with fewer resources are at risk of displacement, housing instability, and homelessness. 
  3. Economic Growth – Housing stability is crucial for economic development. Elizabethtown Mayor, Jeffrey Gregory, highlighted the importance of housing in supporting local economic development around the BlueOvall SK initiative. Without sufficient housing, Kentucky risks falling behind in attracting and retaining employers and growing its workforce.

Investments in housing development are essential to addressing these challenges and supporting the housing needs of all Kentuckians. Numerous local and statewide efforts are underway to encourage the development of new housing, but it is clear from the Housing Task Force meetings that support from the General Assembly is essential to addressing this complex issue. 

Strategies suggested by experts include supporting local land-use and zoning reforms, developing a state revolving loan fund for affordable housing projects, and establishing a statewide affordable housing tax credit. 

We applaud the General Assembly for establishing this task force and prioritizing ways to address the housing crisis in Kentucky. 

We know that the housing crisis is impacting so many families and young people – if you are or know a young person who wants to share their story and take action to address housing insecurity in Kentucky, check out the flyer below and fill out this application to get involved.