Intel’s Announcement earlier this year a $20 billion manufacturing operation Rural areas could see thousands of new jobs Ohio Was greeted with an Economic boon

Behind all that excitement, however, was a dark side. a pressing question.

“Where are we putting everybody?” Melissa Humbert Washington, vice president for programs and services at Homes. for Family Assistance, which assists low-wage workers to find employment housing in a region already suffering a Major shortage

Intel estimates that the initial two factories for computer chips will employ 3,000 workers when they are up and running. in 2025. It is also anticipated that the project will employ approximately 450 people. 7,000 construction workers. This does not include the many additional jobs that Intel suppliers create. inAlong with the expected boom in The service sector.

These are examples housing challenges are This is happening across the country, as more companies come under fire for Failure to address the shelter needs for their new employees and the effects that major developments will have on already tight housing stockpiles. housing markets.

Experts agree that underbuilding, dating back to 2008’s Great Recession, has led to widespread problems. housing shortages. Rob Dietz (senior economist at the National Association of Home Builders), estimates that the country has about 1 million fewer homes than it needs. According to the National Apartment Association a A rental shortage of 600,000 units

“We have underbuilt housing by millions of homes over the past 15 years,” Dennis Shea, executive Director of the J. Ronald Terwilliger Center for Housing Policy. “So when a big company comes into a community that is supply constrained, the demand that they’re going to inject … is going to affect home prices and rental prices because there’s more demand than supply.”

For a big company’s impact on housingYou don’t have to look any further than Intel’s Operation own in Chandler, Arizona, a city that grew from a Small agricultural city of around 30,000 in 1980 was the year that the company built its first manufacturing plant. a High-tech metropolis with 220,000 inhabitants today. It was also accompanied with tremendous housing Chandler has seen rapid growth. According to the Greater Phoenix Economic Council (GPEC), Chandler has almost 95% of its land developed for residential, office, and industrial projects.

Also, housing is more expensive in Chandler, a Median home sales price of $525,000 is lower than $455,000 in Greater Phoenix has median rents at $2,027, compared to $1950 in Phoenix.

Intel jobs ‘require housing’

The challenge for Rural areas are a great option. Ohio is that they don’t have local employees to build or staff a Mark Stapp (Director of the Center) said that it was a large-scale project. for Arizona State University: Real Estate Theory and Practice There’s neither the housing The infrastructure is not adequate to support the growing number of immigrants. housing Increased prices could force residents to move.

“It’s economic development. It’s going to employ people. But you are probably going to have to bring a lot of people into the area,” He said. He added. “those jobs require housing.”

“If you don’t recognize that and don’t properly plan infrastructure, land use policies and manage that growth, it can be a big problem. The great opportunity turns into a big problem.”

In central OhioThe Intel site is located on hundreds upon acres of rural land, once occupied by small homes and farms. However, large business parks have also been built near major thoroughfares. On average, the region receives around 8,200 building permits each year. for Single-family as well multi-unit buildings are all possible, and job and population growth estimates were made before the Intel project was launched. for The Building Industry Association of Central estimates that it is more than twice. Ohio.

“We’re not building enough of anything,” said the group’s executive director Jon Melchi. Central OhioAccording to the group, the city, home to approximately 2.4million people, will reach at least 3,000,000 residents by 2050.

The central Ohio The definition of shortage is the “missing middle” Workforce housing, or homes up to $250,000, said Tre’ Giller, CEO and president of Metro Development, one of Ohio’s largest apartment developers. Only 570 listings were found in a recent Zillow search for homes $250,000 or less in The area.

The housing Extreme pressure makes it difficult for low-wage workers. Central Ohio Already has approximately 71,000 households “severely rent burdened” — families spending more than half their income on housingThe Coalition on Homelessness and Housing stated that. in Ohio. There are only 34 in the region affordable units available for It stated that every 100 low-rent homes had one.

Even worse is the problem in Licking County is home to future Intel plants. There are more than one in five renters are Rent burdened.

Affordable housing Important for Amy Riegel, COHIO executive Director, stated that it is the low-wage workers, from pre-school teachers, to medical assistants who keep the economy afloat. But housing It is also important to consider the following: a Spectrum: If there are not enough properties of higher quality to buy, buyers will take up rentals which would then make it impossible for workers with limited skills to get work. means.

“Housing is definitely an ecosystem,” Riegel said. “If you add housing at one end, and don’t take care of the other end, it has an impact and a ripple effect through the whole system.”

Columbus voters voted in favor of the Nov. 8 ballot a $200 million bond issue aimed at increasing the city’s affordable housing Stock for Homeowners earning less than $50,000 per year “We simply do not have enough places for people to live,” Mayor Andrew Ginther in Announcement of the issue in July.

‘Outrageous’ Prices for rent and homes

Janna Sharrett was grateful for Her apartment in an affordable housing Complex in The region braces for suburban Columbus for Intel’s The impact of arrival on real estate. The customer service representative, aged 60, works from home and only earns $14.94 an hour. She pays $695 for her rent in the apartment that she shares with Bella and Daisy.

Homeport designed the 28-unit, $6.5 million building in which Sharrett resides. a A Columbus-based non-profit that helps expand affordable housing. Sharrett moved in Two years ago, I sought relief from a $1,000 rent payment, and today isn’t sure what she’d do without it.

She worries about the needs people like her as the region expands through projects such Intel.

“Rent is outrageous. Prices of homes are outrageous. And my income is not outrageous,” Sharrett said.

All across the country a Companies are growing in number are Response to housing Concerns by rolling out ambitious plans for Thousands of units of new housing — though efforts fall far short of actual needs.

In 2021 Amazon launched its $2 billion Housing Equity Fund to create More than 8,000 affordable It operates in three regions: Puget Sound, which is home to homes throughout the Puget Sound region. in Washington state; Arlington Virginia; and Nashville Tennessee.

In 2019, Apple said it would commit $2.5 billion toward easing California’s housing crisis, one of a number of initiatives by high tech companies. Walt Disney World has been chosen as the month’s winner a developer to construct affordable housing on 80 acres of its land in Orange County, Florida

Intel is also looking forward to partnering Ohio Prepare community leaders for The increase in housing According to an Intel spokesperson Linda Qian without giving details, there will be a lot of demand in the next few years.

Experts say it’s in Intel’s best interest to contribute toward alleviating the region’s housing shortage. Employers in Greater Columbus has been blaming high worker turnover and lower productivity for long commute times. a Report by Central Housing Alliance, Affordable Housing Alliance Ohio.

“Without the housing product it can easily stifle the workforce needs of Intel and others,” said Jamie Green, a Columbus-based planning consultant.

As the Intel project unfolds, it highlights the challenges ahead, said Leah Evans, president and CEO of Homeport, which developed Sharrett’s affordable Apartment complex

“This just brought to light that for every one job you create, you’ve got a commute and you’ve got a housing unit” need, Evans said. “You have to be thinking about all those things.”

—Michael Casey in Boston contributed to this article.