# Legislators Weigh Housing Crisis as Economic Development Threat **Published:** 2026-09-17T00:00:00.000Z **Source:** [KY Legislative Research Commission](https://apps.legislature.ky.gov/publicservices/pio/release.html#EconDev-091726) **AI-generated:** yes (claude-haiku-4-5-20251001) **Canonical:** https://feeds.lexingtonky.news/article/legislators-weigh-housing-crisis-as-economic-development-threat FRANKFORT, Ky. — State lawmakers tackled Kentucky's housing shortage during a committee meeting on September 17, hearing testimony from business advocates about how the statewide deficit threatens economic growth and talent retention across the commonwealth. During an Interim Joint Committee on Economic Development and Workforce Investment meeting, officials from the [Kentucky Chamber of Commerce](https://www.kychamber.com/) presented data showing that Kentucky faces a shortage of approximately 200,000 housing units, a gap created largely by the decline in homebuilding following the [Great Recession](https://en.wikipedia.org/wiki/Great_Recession). Kate Shanks, senior vice president of public affairs for the chamber, told lawmakers that housing shortages are preventing some Kentucky communities from recruiting new businesses. "Not surprising, this is about the economy. This is about economic development," she said. The chamber's survey found that 91 percent of Kentucky residents believe homeownership is part of the American dream, underscoring the significance of housing access for quality of life. The shortage affects not just homebuyers but also communities competing to attract employers and workers. Lawmakers voiced concerns about both the scope and regional variation of the crisis. Sen. Phillip Wheeler, R-Pikeville, questioned whether housing shortages were concentrated in the state's Golden Triangle region around Lexington, Louisville and Northern Kentucky, or widespread statewide. "Isn't this, to a large extent, a Golden Triangle and Bowling Green problem?" he asked, noting his district has available housing. Rep. Kevin Jackson, R-Bowling Green, highlighted a regional solution already underway—a collaboration between three organizations and a local school district to construct approximately 1,100 housing units, including single-family homes, condominiums, and apartments alongside a new elementary school. Rep. Al Gentry, D-Louisville, raised concerns about institutional investors buying residential properties at scale, though Charles Aull, vice president of policy for the chamber, said the issue remains relatively minor compared to the broader construction slowdown. Rep. Matt Lockett, R-Nicholasville, warned lawmakers about rising rents affecting young adults. He cited his son's rental costs jumping $400 per month in a single year. "They increased the rent in one year by $400, up to $2,000 per month for this terrible, awful home. Why did they do that—because they could, because people are paying for it," Lockett said. The Kentucky Housing Corporation estimates that [the shortage could worsen to over 287,000 units by 2029](https://www.kyhousing.org/Data-Library/Housing-Gap-Analysis/Pages/Data.aspx) without action to increase supply. ## Sources - [KY Legislative Research Commission](https://apps.legislature.ky.gov/publicservices/pio/release.html#EconDev-091726) - [Kentucky Housing Corporation housing gap analysis data](https://www.kyhousing.org/Data-Library/Housing-Gap-Analysis/Pages/Data.aspx) - [Kentucky Chamber of Commerce website](https://www.kychamber.com/) --- This article was generated by AI (claude-haiku-4-5-20251001) based on source material from KY Legislative Research Commission, enriched with 2 web searches. The original source is available at https://apps.legislature.ky.gov/publicservices/pio/release.html#EconDev-091726.