The Cost of Utility Infrastructure: A Challenge for Ohio’s Housing & Development Growth
In Ohio, the pace of housing development is picking up, driven by large-scale projects like Intel’s semiconductor plant and the need for more housing across the state. However, there’s a growing challenge in the development process that often goes unseen: the rising cost of utility infrastructure, particularly sewer systems. The Building Industry Association of Central Ohio (BIA) aims to shed light on this issue, as it plays a critical role in determining how quickly communities can grow—and how affordable new homes remain for buyers.
The Hidden Cost of Development
Developers are responsible for installing infrastructures such as water lines, roads, and sewers—before new homes or commercial properties can take shape. This can cost millions of dollars, especially in areas that currently lack sewer availability. The lack of adequate sewer systems near fast-growing areas like New Albany, home to Intel’s upcoming plant, is stalling new development and inflating costs.
When public utilities are not available, developers often have two options:
- Install private systems, such as septic tanks or package sewer plants, which come with long-term maintenance challenges.
- Build out miles of new sewer lines, a costly undertaking that can delay projects and discourage new development in rural or suburban areas.
These expenses are passed down the line, eventually reflected in higher home prices. This situation adds complexity to Ohio’s efforts to meet rising housing demand while keeping homes affordable.
How Infrastructure Costs Impact Homebuyers
When sewer infrastructure is unavailable, developers face significant expenses, which are often passed along to buyers. As highlighted by Spectrum News 1, the lack of sewer systems leads to delays and added fees for developers, contributing to a bottleneck in new housing projects.
While exact costs vary, these infrastructure challenges can increase the price of homes substantially. Developers often need to invest millions of dollars to extend sewer lines in rural or suburban areas, which can make each home more expensive by thousands of dollars. This added financial burden limits the number of affordable homes built, affecting first-time homebuyers and putting upward pressure on housing prices across Ohio. The cumulative effect is that fewer affordable homes are built, which can hurt both first-time homebuyers and Ohio’s long-term economic growth. If housing becomes too expensive, it discourages people from relocating to the region—an outcome that could impact the labor pool for businesses like Intel and others expanding in the state.
Shared Solutions: How Public-Private Partnerships Can Help
Addressing infrastructure challenges requires collaboration between developers, local governments, and utility providers. Public-private partnerships (PPPs)—widely used in the U.S. for infrastructure projects—offer one way to spread costs between public and private entities. These partnerships are designed to reduce the financial burden on developers, speed up infrastructure construction, and make housing projects more feasible.
In Ohio, and elsewhere, several funding strategies are being used to ease the burden of utility infrastructure costs:
- Tax Increment Financing (TIF): This tool allows municipalities to use future property tax increases generated by new developments to pay for upfront infrastructure improvements like sewer systems. TIF is frequently used across Ohio, especially in areas with high growth potential.
- Grant Programs: State and federal programs, such as Community Development Block Grants (CDBG), provide subsidies for infrastructure investments. These grants help encourage development in underserved or rapidly growing areas.
- Reduced or Waived Impact Fees: Some local governments incentivize development by waiving or reducing fees for projects in targeted regions. This approach encourages housing construction while lowering the financial burden on developers, which can result in more affordable homes.
These strategies are commonly used across the U.S. to promote sustainable development and ensure infrastructure can handle long-term growth. For Ohio, leveraging such solutions is essential as the state navigates rapid economic expansion.
Getting Involved: Advocacy for Housing Development in Your Community
One of the best things people can do if they want to get involved is to show up to local city council meetings or trustee meetings and advocate for more housing in your community.
Jon Melchi, Executive Director of the BIA of Central Ohio
This call to action from the BIA of Central Ohio’s executive director, Jon Melchi, highlights the critical role that community members play in shaping the housing development in their areas. Here’s why this involvement is so essential and how residents can make a difference.
The Power of Local Advocacy
- Influencing Decision-Makers:
Local government officials and city council members often rely on community input to guide their decisions. When residents attend meetings and express their views on housing needs, it provides valuable insights that can inform policy and zoning changes. Your voice can highlight the urgency of housing demands and the importance of developing more affordable options. - Building Community Awareness:
Many residents may not fully understand the housing challenges their communities face. By participating in these meetings, you can raise awareness about issues like rising costs, the need for utility infrastructure, and the challenges developers encounter. Educating your neighbors and local leaders fosters a community that prioritizes housing development and understands its impact on economic growth and quality of life. - Networking with Like-Minded Individuals:
City council meetings often attract individuals and organizations interested in housing issues, including other residents, builders, and community leaders. Engaging with these groups can create a network of advocates committed to similar goals. Collaborating with others amplifies your efforts, allowing for more robust advocacy and the potential for organized initiatives to push for change. - Pushing for Policy Changes:
Many housing-related issues are rooted in local policies and zoning regulations. Residents who advocate for more housing can influence changes in these regulations that facilitate new development. For instance, advocating for streamlined permitting processes or changes to zoning laws can help reduce delays and costs associated with new housing projects.
How to Get Involved
If you’re interested in taking action, here are some practical steps you can take:
- Attend Meetings Regularly:
Make it a habit to attend local city council or township trustee meetings. Regular participation demonstrates your commitment and allows you to stay informed about ongoing housing discussions. - Prepare Your Message:
When attending meetings, be clear about your message. Share specific examples of housing needs in your community and articulate why more housing options are essential. This preparation makes your advocacy more impactful. - Engage with Local Officials:
Don’t hesitate to approach council members or trustees after meetings to discuss your concerns directly. Building relationships with local officials can enhance your influence and encourage them to prioritize housing issues. - Mobilize Your Community:
Encourage friends, family, and neighbors to join you at meetings. The more voices advocating for housing, the stronger the message will be to local leaders. Consider organizing community forums or discussions to build awareness and collective action around housing needs.
By following Jon Melchi’s advice and actively engaging in local advocacy, residents can help shape the future of housing in their communities. Together, they can influence decision-makers and foster an environment that supports sustainable growth and affordability for all.