Housing and Economic Vitality in Rural Midwestern Counties

Abstract

In response to major restructuring of the economy in America's Heartland, numerous development policies and programs have been implemented. Often, howeves these efforts have emphasized employment opportunities andpopulation growth, but have not attended to housing needs. In this research, the authors examine the relationship between housing and non-metropolitan county economic vitality. Vitality is an index composed of three variables: per-capita earnings in all industries, per capita personal income, and proportion of persons above poverty. The results of a regression analysis of 1990 data support the argument that housing contributes to county economic vitality. Four housing variables were significant: the proportion of renter-occupied housing and the occupancy rate were positively related to vitality; and the proportion of mobile (manufactured) homes and the proportion of units in structures with 5 or more units were negatively related to economic vitality. Median value of owner-occupied units was not a sign8cant indicator related to vitality. The findings suggest that housing contributes to county vitality in complex and sometimes conflicting ways (e.g., rental housing and high occupancy rates generally add to vitality, but structures with 5 or more units and mobile/manufactured homes do not). The finding that economic vitality in 1980 was the most powerful variable in predicting 1990 vitality indicated that the level of vitality in one decade may continue its influence into the next decade.