Date: March 5th, 2025
To: Rep. Dean Van Schoiack, Chair, and members of the Special Committee on Rural Issues
From: Misha Smith, Affordable Housing Policy Manager, Empower Missouri
Re: Opposition to HB 595
Founded in 1901, Empower Missouri is the largest anti-poverty advocacy organization in the state. As part of our work, we convene a statewide Affordable Housing Coalition every month. This coalition is made up of individuals and organizations who are working to ensure every Missourian has access to safe, affordable, stable housing. On behalf of our staff, board, and coalition members, we are asking you to support and vote yes on HB 245.
As Missouri households continue to feel the impact of rising rents in our communities, which continues due to decreasing supply of affordable housing, rural communities are often overlooked but are facing real financial impacts due to rising housing costs. Households in rural communities often have lower incomes than their metropolitan neighbors. An estimated 50% of rural renters report an annual income of less than $30,000 a year which leads to being housing cost burdened, with nearly 50% of rural renter households paying more than half of their income on housing.
It is estimated that slower economic growth in our rural communities is not solely due to the lack of jobs, but the decline in the availability of housing for workers. With substantial cuts to federal fundings used to develop rural housing – more than 95% over the last few decades potential new employers avoid areas with a lack of housing due to the struggle to attract skilled workers as workers consider housing costs when deciding whether to accept a job where they will have to relocate. When we invest in housing for rural working class households, we invest in strengthening rural communities as a whole.
The longer investments are put off, the more expensive housing will become. Reports estimate that rural communities will lose an average of 550 rental homes per year between 2028-2040 if we continue to divert funding away from rural communities. Lack of funding in the housing stock in rural communities also leaves them with a higher amount of substandard housing, which not only leads to safety concerns, but impacts the ability of employers to attract skilled workers to these areas.
We support the investment in housing for working class families in rural Missouri. As housing costs increase, households are spending less money on basic necessities, such as food. Studies show that families making up to $75,000 a year are spending less money on food due to the cost of housing. Local businesses also lose out as economic growth stalls, leading to decreased spending in these communities.
HB 245 will prioritize rural communities with the highest need for both job and housing development. This ensures that these communities can begin to see the investment they deserve and the economic growth that will enrich their communities. Workforce housing is an investment in working class households and an investment in our communities. We ask that you vote yes on HB 245 and support housing development and economic growth for our rural neighbors.
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