What is the key to successful economic development?

Is it available land and facilities, public infrastructure, a well-developed transportation network, a low-cost of doing business, a well-trained workforce, or a high quality of life?

It is all of these things.  But it is also becoming increasingly clear that it includes quality, affordable housing.  And, here in the Hudson Valley the lack of housing is fast becoming an impediment to business expansion and attraction and thus the growth and prosperity of our communities.

In Ulster County, while the population has grown by 7% over the past ten years to approximately 178,000, the housing inventory has not kept pace.  A lack of inventory in the new home and resale markets has greatly increased the rental market (with a 20% increase over the course of the last decade) leading to decrease in the vacancy rate to just about 1.2%.

The decreased inventory coupled with an increase in the second home market has greatly increased purchase prices and rental costs often putting what is available out of reach of many County residents.  With almost 45% of those in the County earning average annual salaries between $20,000 and $50,000, we see over 40% of renters and over 23.5% of homeowners devoting 30% or more of their household income to housing expenses.

Today, Ulster finds itself with many challenges, among them: continuing the revitalization of the local economy; stemming the out migration of those 20-35 years of age; attracting higher paying, better quality jobs to balance the increase in the retail and government sectors; and strengthening and expanding the educational structures of our local school districts and institutions of higher learning.  And now added to the list, the newer issue of housing our current population while also supporting the future needs of growing families, an aging population, and new businesses and their employees.

This new need cannot be ignored.

In general terms investments in housing – home ownership or rental housing programs, as well as private sector development – benefit not only those who live under the roofs of the buildings created but the community as a whole.

Because it is durable and tied to location, housing can and often does have positive and negative impacts.  Deteriorated or abandoned housing may reduce property values in a neighborhood and lead neighboring owners to invest too little in housing upkeep.  Conversely, investing in housing maintenance and rehabilitation may increase the value of housing on a block and stimulate investment by others.

Housing also has the potential to create order out of disorder, combat crime and create neighborhood stability.  New housing development and restoration of older abandoned buildings can revitalize downtown communities and create a consumer base for local retail stores and services.

In specific terms for our County it is critical to expand the quantity of available housing as well as the quality.  The full spectrum of housing is needed – single family and village density, affordable and market rate, rentals and new homes, senior living and assisted care.  Furthermore, the housing must be located in those communities where there is the greatest demand.

By increasing the housing stock in the County we can begin to stem the upward pressure on home sale prices, address the needs of students to our institutions of higher learning, fill the void in continuum of care facilities, and provide assistance to lower and moderate income families.  Equally important is that new businesses interested in locating in Ulster County will feel more comfortable in relocating because the needs of their employees can more effectively be met.

What can the Ulster County Development Corporation do to help?

With our emphasis on economic development and community revitalization, UCDC works to maximize exposure for businesses and commercial and residential real estate development through regional and national marketing.  In addition we provide business financing through a variety of revolving loan funds and the Ulster County Industrial Development Agency.  These efforts can and should be expanded to support housing development.

Our interaction with the existing business community and those interested in locating within Ulster County allows us to gauge potential increased workforce demands.  This information is critical to evaluating future housing needs.  Demand leads to private sector investment in housing which leads to increased supply.  Furthermore, it can become the foundation of a collaborative effort between the County, UCDC, other nonprofit service providers, and local business to establish employer assisted housing initiatives.

Not only do we interact with commercial and manufacturing enterprises, we interact with real estate developers.  We have increased our marketing to that industry sector so as to generate development to meet today’s as well as tomorrow’s housing demand.

Finally our efforts to enhance the public infrastructure of the county – water systems, sewage and water treatment facilities, gas and electric distribution, and telecommunications networks – can be implemented so as to also support the development of new housing and the reuse of existing, though abandoned or deteriorated housing.

Recognizing the issue and identifying the potential way in which it can be addressed will only get you partway to the goal.  As with economic development, the solutions to housing are complex and do not come about overnight.  It takes participation of a broad array of public and private interest.  It takes resources.  And it takes time.

UCDC is ready and committed to working with many partners to reach our common goal.