Housing for essential service workers during an oil boom: opportunities and policy implications

Abstract

This article analyzes the affordability of housing in two counties in western North Dakota, during a period of rapid economic and population growth, triggered by increased oil industry activity. The focus is on affordability issues of essential service workers—such as teachers, nurses, police officers, and local government employees—who are also the moderate-income earners in a community. Findings presented in the article shows that essential service workers face considerable housing affordability issues, because of the housing market conditions generated by the economic and population growth. Findings also show that conventional housing assistance programs are of little use to solve the affordability issues of essential service workers. The article further explores three models or mechanisms that could be used to improve the affordability of housing: a community land trust (CLT) model, a property tax exemption model, and a low-interest model. Analysis shows that the CLT model has considerable financial potential toward provision of housing that is affordable to essential service workers.