Before accepting a job in a new community, it’s not unlikely one would first ask themselves: Where will I live? That question has historically been easy for Grand Island to answer with an array of both available rentals and properties for purchase. That same availability no longer exists, however, now creating a hurdle that keeps qualified professionals from accepting job offers in Grand Island.
We’ve heard from prospective candidates that housing is an issue, but it is also directly impacting the lives of many individuals and families already living in Grand Island. It affects not only low-income families struggling to find affordable shelter but also young professionals seeking employment here and even seniors looking to downsize. The significance of the housing crisis lies in its ability to disrupt the well-being and stability of our community, our businesses and, in turn, our labor force. Grand Island is lucky to have quality career avenues in our community, but it is impossible to recruit and retain outside talent without adequate housing.
Whether it is for a rental unit or to purchase, the average housing prices have seen a significant increase from 2019 to the present, creating financial strain for individuals and families looking to make Grand Island their home. Looking back to June of 2019, the average sold price of a house listed within Grand Island’s city limits was $168,496. In June of this year, the average sold price rose to $264,474. Beyond the initial purchase price, rising interest rates and property taxes have young buyers shying away due to inflated costs.
Additionally, the number of homes available on the market at any given time is inadequate to meet demand. This June, 111 new listings appeared on the market. Grand Island is a community composed of nearly 55,000, so this is not a number commensurate with reasonable expectations. The desired rate of vacancy for communities of Grand Island’s size is 6.0%. Grand Island’s rate of vacancy is 3.1%. The housing market is naturally less sluggish in the summer, but even the highest recorded number of new market listings in the last four years in Grand Island is a mere 123 listings in June of 2022.
Demand is high, as evidenced by ever-increasing prices, but Grand Island homeowners are reluctant to list their homes for sale due to the high interest rates and taxes associated with purchasing a new home. Perpetually increasing building costs may be enough to deter a homeowner from moving to a larger, more costly house.
When a house does appear on the market, it is purchased rapidly. In June 2023, houses were on the market only 34 days before purchase. Houses selling within days of hitting the market is proof that Grand Island residents and those considering moving here are interested in investing in new homes, yet there are simply too few available to keep pace with demand.
It is important to understand that not one entity is responsible for moving the needle on housing initiatives. Local elected officials and policymakers have been engaged in discussions surrounding the lack of available housing in and around Grand Island. Conversations about the flexibility of zoning regulations, input from local senators, lobbying efforts by organizations like Grow Grand Island, and discussions with Governor Pillen are all part of the ongoing dialogue to find policy solutions.
Various private-public partnerships play a crucial role in these conversations. Discussions are continually being held regarding the redevelopment of the former Nebraska Veteran’s Home, as well as business ventures like the Conestoga Marketplace apartments and the high-end Legacy 34 apartments. Additionally, local businesses are thinking outside of the box, exploring housing solutions for their staff to ensure readily available living quarters when recruiting talent. Fresh ideas, any departure from the traditional view of a single-family, multi-bedroom dwelling, are helpful to Grand Island’s efforts to make housing obtainable.
We understand the housing crisis impacting our area is multifaceted and affects people from all walks of life. Addressing this crisis is essential to the growth and well-being of our community. The Grand Island Chamber of Commerce remains committed to being actively involved and engaged in the ongoing efforts to alleviate these housing challenges. We continually work to minimize the hindrances experienced by those who wish to develop housing or buy their homes here. By working together, we can ensure a brighter future for Grand Island and its businesses, where reasonable and accessible housing is a reality for all.
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Labor Force Directly Impacted by Housing in Grand Island
Monday, October 2, 2023
