Article by The Beacon | According to the U.S. Government Accountability Office (gao.gov), the nation is facing an affordable housing challenge that is founded in part by low inventory and an increase in young adults who are seeking larger homes in which to raise families. Ottawa County has the added challenge of a fluctuating, season-led economy that defines the east end’s business character, contributing to a local housing crisis.
“The national trends are exacerbated here in Ottawa County,” said Oak Harbor Mayor Quinton Babcock.
Babcock is part of the Ottawa County Housing Task Force that is seeking solutions to Ottawa County’s housing crisis, which has become the county’s invisible predicament. As construction of high-priced private homes and multi-home developments flourish across the county, many residents may be surprised to discover that a lack of housing is greatly impacting local economic health.
The distinction lies in the types of homes in demand in Ottawa County. The county faces a severe shortage of affordable housing, which has a direct impact on business and industry stability. Without homes for its employees, businesses can’t attract workers. Without a sufficient workforce, businesses can’t thrive.
The problem is so pressing that local manufacturer LogistiQ is hoping to construct employee housing, a move reminiscent of the homes that were built in Port Clinton to house war effort workers during World War II in the 1940s.
“LogistiQ is looking to buy land for housing for its employees. People are hired, but they leave because they can’t find housing,” said Ottawa County Improvement Corporation Executive Director, Chris Singerling, who also serves on the Ottawa County Housing Task Force.
Firelands Forward, a nonprofit organization dedicated to stimulating economic growth in Ottawa, Erie and Huron counties, retained Bowen National Research in July, 2022, to conduct a Housing Needs Assessment of the tri-county region. The assessment identified many factors contributing to the housing shortage.
Surprisingly, Ottawa County has maintained a core, year-round population of about 40,000 residents for 40 years. But holiday homeowners cause the population to swell in the tourist season and has spurred the construction of high-end summer homes and the transition of traditional homes into recreational rentals.
According to the Housing Needs Assessment, approximately one-third of homes in Ottawa County are classified as seasonal/recreational, which drastically decreases the housing inventory for year-round residents.
Of the tri-county focus region, Ottawa County has the largest number of higher-priced homes, and according to the study, “It appears many of these homes may be targeting vacation and/or second-home buyers.” In addition, the manager of a local contractor supply business said there is a trend on the east end of Ottawa County to demolish homes that are less than 20 years old to make room for the construction of higher-priced homes, further decreasing affordable housing options.
According to the Housing Needs Assessment, the local housing crisis is exacerbated by the fact that about one-third of homes priced below $150,000 are small, one-bathroom homes built prior to 1950 that have repair or improvement needs, adding additional costs that lower-income workers can’t afford.
Therefore, the housing crisis directly impacts businesses seeking workers. According to the assessment, about two-thirds of the workforce in the tri-county region is based primarily in five vocations: accommodation and food service; arts, entertainment and recreation; retail trade; healthcare and social assistance; and manufacturing. Many of the people who work in these occupations do not earn adequate wages to afford housing available in the area.
The high cost of housing isn’t just affecting the workforce. It has stymied a cycle of homeownership that has existed for decades. Typically, young residents begin their adult lives in rentals units. Older residents living in large family homes decide to downsize to townhouses or condos. They sell their homes to young residents ready to move into large homes and start families.
The high cost of homes is preventing many older residents from making the transition to smaller housing options, limiting the large home inventory.
“The most underserved are the young. We need a little bit of everything because to do it right, it starts with the young people’s needs,” Singerling said.
The Ottawa County Housing Task Force is seeking proactive solutions to the local housing crisis, and their work will be highlighted in the next two segments of this series. By addressing the housing crisis, the task force will help strengthen economic growth and build communities.
“How do we create the kind of community our children will want to stay in? Housing is a key piece to that,” Babcock said. “You want your kids to do better, but why not do better here?”
