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Oil and gas boom creates housing shortages in rural Ohio
YOUNGSTOWN
A series of reports released by the Ohio Housing Finance Agency shows the oil and gas boom is creating a shortage of rental homes in rural parts of eastern Ohio, leaving moderate- and low-income residents with limited housing options.
The research is the first of its kind about the impact of the shale industry on housing in areas most affected by an influx of workers. The OHFA worked with the Ohio Development Services Agency, Ohio State University, Ohio University, the Coalition on Homelessness and Housing in Ohio and a Columbus-based private research firm to complete and release the report.
David Goodman, director of the ODSA, said the data collection is intended to assist the housing authority and other public agencies in selecting Ohio communities to monitor and craft better public policies to address housing needs in areas affected by the boom.
Though Ohio hasn’t witnessed the problems that small communities in places such as North Dakota and Texas have in recent years, where populations have swelled and disruptive “man camps” have cropped up to serve oil and gas workers, policymakers here are trying to get a jump on any trends that may arise.
“This work will serve as a benchmark for further study of housing insecurity as the gas and oil industry grows, and will help us develop effective policy solutions to address the housing needs of impacted populations,” said Bill Faith, executive director of the homelessness coalition.
Researchers at Ohio University studied Carroll County, the epicenter of the state’s oil and gas boom, where more than 260 wells have been permitted and 150 already have been drilled. They found demand for affordable housing has significantly risen as a result of the drilling activity there.
An influx of workers, limited options and high housing stipends provided to those workers have allowed rental-market prices to climb and strain existing housing infrastructure, while forcing moderate- to low-income residents out of competition for those properties, the study’s authors said.
Most shale workers have been able to obtain housing in single-home rental units, hotels, campgrounds and other options, but it has been estimated that it takes an average of 400 workers to develop a well site from beginning to end. Complicating matters for policymakers is the uncertainty regarding the long and short term development of the shale industry inside the state, making it difficult to predict what kind of new housing will be required to meet demand in the future.
“As this industry expands in eastern Ohio, we anticipate that additional housing shortages will take place throughout the region, with smaller communities being affected the most,” said Robin Stewart, project manager of OU’s Voinovich School of Leadership and Public Affairs. “Additional analysis will help develop a regional strategy that ensures affordable housing options remain available for the area’s most-vulnerable citizens.”
Urban areas, such as Youngstown and Canton, situated near the shale boom in eastern Ohio have accommodated the influx of workers with hotels and extended-stay lodging. Areas like Mahoning and Trumbull counties are not expected to be as adversely affected. But the authors believe Columbiana County could witness a housing strain within a year or so.