Testimony in Support of SB 1105 – The Workforce Housing Investment Fund in Rural Communities

Date: January 28, 2026
To: Committee Chair Senator Ben Brown, and members of the Senate Economic and Workforce Development Committee
From: Erica Robbins, Affordable Housing Policy Manager, Empower Missouri
Re: Support for SB 1105

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 SB 1105, a Department of Economic Development grant program designed to support the development of workforce housing in rural communities.

As Missourians continue to feel the impact of rising rents which continue due to a decreasing supply of affordable housing, rural communities are often overlooked and most likely to face the real financial impacts due to rising housing costs. Renters in rural areas are typically paid lower wages than their homeowning neighbors: about 27% of rural households rent their homes, and over half of rural renters are paid less than $35,000 per year, compared to 25% of rural owners. 

According to the National Low Income Housing Coalition, rural communities across the US face unique challenges when dealing with the affordable housing crisis. Because development does not generally occur at a large scale in rural areas, construction costs are often higher in rural communities compared to urban areas, which reduces the incentives for private investment. To exacerbate this crisis, real rents increased by 31.2 percent between 2000 and 2023, whereas the median real income of rural renting households only rose by 5.5 percent.

This decline in the availability of affordable housing for workers across the state is also affecting our workforce development. Prospective employers feel the impact of inadequate housing in their communities as well, avoiding regions with a lack of affordable housing due to the struggle to attract skilled workers to those areas. These conditions disrupt business operations and increase recruitment costs, creating a vicious cycle that impedes individual career progress and the community’s economic stability, hindering both sustained growth of local businesses and the local economy. 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 show that no directly-financed or state-funded rental housing has been developed in recent years and that existing properties are in need of rehabilitation, another funding source that has also been neglected. The impacts of this trend are problematic for rural renters and communities alike. 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. 

As seen in states like Iowa and Nebraska, these successful initiatives not only lead to local economic growth, but also a statewide retention in talent, future workforce development, and overall community well-being.⁶

SB 1105 will prioritize rural communities with the highest need for both job and housing development. The approval of this bill will ensure that these communities begin to see their deserved return on investments and the economic growth necessary to enrich the lives of all citizens who call rural Missouri home. Workforce housing is an investment in working class households and an investment in our communities. We ask that you vote yes on SB 1105 and support housing development and economic growth for our rural neighbors.