The Greater Des Moines region will need to increase housing near jobs, have a housing mix that reflects the job mix and create equitable housing opportunities, according to a new housing study released by Capital Crossroads.

The study, which looked at the region collectively, sought to answer one key question: Will the region’s housing supply be able to respond to anticipated population and job growth over the next two decades? The region includes Dallas, Guthrie, Madison, Polk and Warren counties.

The region is expected to add 150,954 new jobs over the next 20 years, according to the report. Polk County will need to add 57,179 net new housing units in the next two decades to accommodate new workers (33,592 new owner-occupied units and 23,577 new rental units). More than 70% of new households in the region will have incomes less than $75,000 a year.

Currently, 41,000 workers, who earn $25,000 or less, are unable to afford rent without cost sharing with another earner. More than 50% of the demand for owner-occupied homes is for homes priced below $175,000. Only 12% of the owner-occupied housing demand is for homes priced at $350,000 or more.

Overarching findings from the report

• There can be significant benefits for workers and society when workers live near their place of employment.
• In some areas in the region, jobs far outnumber housing units, limiting the ability of local workers to live where they work.
• For many households, commuting is a choice, but many workers can only afford to live in certain areas and are forced to commute.
• Economic imbalances trap many low-wage workers in distressed neighborhoods and threaten the region’s economic health.
• Job, employment and housing growth are happening most rapidly in the suburbs.

The fastest growing job centers are in the suburbs, notably West Des Moines and Ankeny, according to the report.

Six strategies for action
The report list six areas where strategic actions could be taken: policy and planning, implementation mechanisms, land banking, affordability purchases, affordable rehab programs, and organizational capacity and funding.

“Local governments in the region should revisit comprehensive, redevelopment and neighborhood plans, as well as economic development plans and policies, to strengthen the focus on housing issues, especially those related to workforce and affordable housing,” the report states. “Where public incentives are required for new development, governments in the region should adopt minimum affordability thresholds for residential projects and housing wage requirements for job-creating non-residential projects.”

Among other recommendations related to affordability, the report recommends that the Polk County Housing Trust Fund expand its efforts in “purchasing affordability in existing and newly built multifamily projects.” Forgivable loan financing and master leasing were among the strategies listed for doing this.

Downtown Des Moines’ contribution

• Between 2010 and 2017, the number of housing units increased by 87% while the number of jobs increased by less than 4%.
• During that time, low-wage jobs paying less than $15,000 per year grew much more slowly than higher-wage jobs paying more than $40,000 per year.
• Downtown has many income-restricted affordable units dating to previous decades. In 2020, over 25% of all units downtown will be affordable.
• Downtown has added 500 affordable units since 2010. But nearly as many preexisting affordable units have been converted to market-rate. On a net basis, only two dozen affordable units were added downtown from 2010 to 2017.

See more summary points from the report and also view the executive summary.