Background

The New Castle Henry County Economic Development Corporation recognized that limited housing availability had become a significant challenge for residents, employers, and future investment opportunities. A shortage of available housing made it more difficult for businesses to attract and retain talent and constrained the county’s long-term growth.

Henry County had previously participated in a regional housing study that provided valuable insights. However, county leaders needed a more targeted analysis that addressed its unique market dynamics, workforce trends, and housing demand to prioritize investments and guide development.

Henry County engaged KSM’s government consulting team to assess market conditions, evaluate demand for single-family housing, and quantify local housing gaps.

The Challenge

Gaining a clearer understanding of the local housing landscape would enable leaders to strategically address future housing, but limited resources and an incomplete understanding of market demand stood in the way. That gap made it difficult to identify the greatest housing needs across multiple price points and prioritize investments effectively. Without that information, county leaders risked directing funding toward projects that would not effectively address workforce and community needs.

Leadership needed actionable, data-driven insights to strengthen grant applications, build stakeholder consensus, and align housing strategies with workforce needs. They also wanted to better understand how broader market dynamics, including housing inventory and development trends, were contributing to affordability challenges beyond what high-level data could explain. Understanding these factors was essential to developing a sustainable housing strategy that would guide future investment and growth.

The Solution

Through a comprehensive analysis of workforce, housing, and economic trends, KSM’s government consulting team identified where housing shortages were most significant and how they were affecting growth. Drawing on its economic development expertise, the team looked beyond housing demand to understand how housing supply, workforce needs, private investment, and community growth were interconnecting. This broader perspective helped county leaders understand where shortages existed and why they mattered for local leadership and the business community.

KSM identified significant shortages in middle- and higher-income housing and showed how those gaps affected workforce needs, private investment, and community growth. The shortage of higher-end housing options pushed higher-income buyers into an already limited middle-market inventory, increasing competition and driving up prices across multiple segments of the market.

KSM supplemented quantitative research with input from local realtors and housing professionals. These discussions provided valuable context on buyer behavior, inventory constraints, and market conditions not fully visible through data alone and resulted in a more complete understanding of the local housing market.

Rather than simply identifying housing challenges, KSM translated the analysis into clear housing priorities and quantified gaps to support future planning and investment.

The Result

The housing demand analysis gave Henry County a clearer understanding of its housing market and a focused strategy for addressing housing challenges and driving strategic investment.

The county used the analysis to support housing-related development initiatives, including Indiana Finance Authority and Regional Economic Acceleration and Development Initiative (READI) grant applications, helping secure more than $4 million in housing funding. The analysis also strengthened discussions with employers, stakeholders, and funding organizations by connecting housing needs to workforce trends and economic growth.

Most importantly, the project gave Henry County a practical, data-driven roadmap for future planning, investment, and community growth.

We’re extremely grateful for the partnership and insight KSM provided throughout this process. Their analysis gave us a clearly defined and quantified understanding of our housing needs and helped position Henry County for significant grant funding.”

-Corey Murphy, President & CEO, New Castle Henry County Economic Development Corporation

Navigating housing and workforce challenges in your community?

KSM’s government consulting team delivers targeted analysis and strategic insight that help communities identify housing needs, support economic development efforts, and plan confidently for long-term growth. Contact us to learn how we can help support your community’s future.

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