| Share this: | ||||
|
|
|
|
|
|
Housing Finance Agency Study Documents Impact Of Marcellus Development On Housing
|
|
The Center for Study of Community and the Economy at Lycoming College Tuesday released a comprehensive report on the impact of Marcellus Shale gas development on housing. The study was funded by the PA Housing Finance Agency.
CSCE conducted interviews with over 70 stakeholders in six counties-- Bradford, Greene, Lycoming, Sullivan, Washington and Westmoreland-- including local elected officials, county and municipal planners, housing authority officials, social service agency representatives, landlords, developers, realtors, gas company representatives and new residents on four broad issues: 1) rental housing, 2) owner-occupied housing, 3) housing affordability and availability, and 4) the capacity of the development community to meet demand for housing.
Several broad themes emerged from the interviews. First, the severity of the housing problem attributable to Marcellus Shale development depends on the nature and scale of the growth of the natural gas industry in a given county or community and on the existing pre-Marcellus capacity of that county or community to absorb the increased demand for housing. Generally, communities experiencing the highest Marcellus activity relative to their size are experiencing the most difficult housing problems. In addition, counties where gas producers and service companies are establishing regional headquarters see more and longer term housing impacts than communities where there is only drilling and pipeline activity.
Counties that have previously experienced population growth due to other industries in the area or an influx or commuters from neighboring larger cities have existing development capacity. In these areas there are local and regional builders who are familiar with the areas housing needs and are experienced in working with the area’s zoning regulations and county and city officials. These builders are ready to respond to any increase in housing needs.
Second, the effects of increased housing demand are broad-based, but the negative impacts are felt heaviest by those living at the economic margins. While rents and home prices are increasing at nearly all price points, the impacts of the housing shortage are falling heaviest on those whose housing situation was most at risk prior to the Marcellus industry growth, namely the non-working poor, seniors, the disabled and, newly, the working poor. Never having extensive housing options, these groups are faced with few choices in most affected communities, often limited to substandard housing or “couch surfing” homelessness.
Additionally, the natural gas industry has a wide variety of housing needs with varying time frames. Two waves of gas industry employment correspond to the evolving housing needs of industry employees. For the first transitory wave of gas workers, housing needs are being met with hotels, gas-company sponsored temporary residential facilities (often called man camps), campgrounds and a community’s rental housing stock.
The second, more permanent, wave of gas employees are more diverse in background and have a more diverse set of housing needs. They will take advantage of a full range of long term housing options including rentals and owner-occupied housing. With a diverse set of job titles and experience levels, these second wave employees can expect to be located in an area for their entire careers, or their replacements will be if they were to move on. Included in this group are gas employees native to Pennsylvania with newly-found financial stability that will increase demand for owner-occupied housing as they look to translate their new financial status into more desirable living conditions.
As these new residents move into the Marcellus region, a disconnect exists between the housing expectations of this second wave of employees and the available owner-occupied housing. Most residents moving into the region are looking to buy new homes in move-in condition with all the modern conveniences. Instead, they find an aged housing stock in poor condition and lacking modern touches.
Finally, the capacity of the development community varies considerably from county to county in its ability to meet the need for additional housing. Counties with little pre-Marcellus development are struggling to attract development to meet the new circumstances. Barriers to development include the lack of local developers, a tight financing market, inadequate utility-served land available for development, regulatory hurdles, and lingering doubts about the Marcellus Shale gas industry. Market rate housing development, especially in select counties, is further along in meeting the increased need for housing than is the case for subsidized housing development in the most problematic counties.
A copy of the study is available online.
|
|
11/7/2011 |
| Go To Preceding Article Go To Next Article |