Rural housing market response to nonfarm employment growth: an analysis of housing development patterns

This paper describes uses of economic impact models to examine labor force and housing relationships associated with regional employment changes, including area-wide labor demands, expected housing needs in response to changes in the labor force size, and the predicted quantity of new housing units that will be developed. The perspectives analyzed represent important elements in economic development planning, especially in light of the tremendous competition for firms and workers among cities and states in the U.S. today. Rural development officials report difficulty attracting residential labor force members and reason that the absence of housing starts in rural places is inhibiting future growth prospects. The paper demonstrates how input-output, econometric, and spatial analysis methods can be combined to assist decision makers in determining the overall value of regional economic growth and the labor and housing impacts of that growth. Special attention is given to delineating the spatial dimensions of labor and housing markets in rural, urban, and metropolitan settings.