Rural Iowa gaining momentum with workforce, housing initiatives

Rural housing in Iowa has never experienced more of a momentum shift than what the state is experiencing right now. Catapulting off this momentum will be critical to make an impact on the increasing shortage of attainable, quality housing in rural areas.

In 2024, Origin Homes, primarily a rural custom homebuilder, expanded its efforts to bring workforce housing to rural communities in Iowa, highlighting the importance of this initiative in propelling economic growth, maintaining strong local workforces, and ensuring the survival of small-town Iowa.

 The Current Housing Status in Rural Iowa

The housing shortage in rural Iowa has been a growing concern, exacerbated by market conditions, booked trade partners, and homebuilders’ increasing risk to invest in building outside metro areas. This imbalance has far-reaching effects, particularly as Iowa’s rural areas see an aging population and fewer young families moving in due to limited housing options.

In response, workforce housing plans have been underway by Origin Homes in Gowrie, Manning, and Knoxville in 2024 with an additional 13 homes in Knoxville, Jefferson and Conrad announced for 2025. These communities are specifically designed to provide more attainable housing options for employers, families and residents in these areas.

Community Overviews

From as far west as Manning, east to Conrad to south in Knoxville, Origin has many available homes that are move-in ready right now in rural communities. Here’s a look at what’s coming up next:

Jefferson 

Origin Homes intends to build three homes on three infill lots throughout various established neighborhoods within Jefferson. The city has removed dilapidated properties in hopes that new construction will continue to draw people to the area. After obtaining the 2023 Iowa’s Thriving Community designation, Jefferson has been working diligently to attract single-family and multi-family homebuilders. Business expansions are also demanding Jefferson to designate new housing (Bauer Built growing team, expansions in downtown retail and hospitality and restaurants, and a new Financial Center for investment services will create 10 new jobs). 

“Currently a significant number of employees working in Greene County are forced to live outside the county because of lack of housing. They’ve taken the challenge head on in other communities who are already reaping the benefits of homeownership,” said Scott Weber, President of Greene County Development Corporation. 

Conrad 

The Catherine Farmer development is surrounded by city parks, Oakwood lighted Golf Course, and trail access to BCLUW School District in Grundy County. Origin is proposing to build five homes varying from 1,400-1,600 square feet with full basements, garages and turn-key finishes. Conrad is home to major ag employers including Green Products, Nucara, Ritchies, PCA, Mid-Iowa Coop and the school district. 

“There has been a housing shortage within the community and when homes become available, they’re typically off the market in a week or two. This initiative home buildouts through Origin Homes would fill a crucial gap in the housing market,” said Luke Wilson, Conrad Development Committee Chairman.

Knoxville – Phase II 

After experiencing great success in Knoxville’s 150-acre Veterans District, Origin Homes plans to build five more homes in this community. This time, the exteriors, floorplans and finish types will vary greatly from one home to the next while still featuring alley-loading garages, across the street from Veterans Park and Knoxville School District. Origin Homes has sold three out of five homes in this neighborhood and is excited to expand on the momentum. The Veterans District was created by the City of Knoxville and Marion County with over $16 million invested in acquiring the former VA Hospital grounds, removing the buildings and developing the neighborhood.

“While our major employers have expanded their operations, their ability to recruit new employees has been constrained by the housing shortage.... Origin can continue leading the way in providing valuable workforce housing in our community,” said Nathan Sage, Executive Director, Knoxville Chamber of Commerce.

Workforce Housing's Economic Benefits

Workforce housing does more than provide affordable living options—it strengthens the local economy by increasing the property tax base and enabling workers to live where they work. This is particularly important in rural areas where commuting long distances to jobs can be a barrier to economic participation. By providing local housing, companies can attract and retain a skilled workforce, ensuring that essential industries, such as manufacturing and agriculture, continue to thrive in these communities.

According to the Iowa Labor Market Quick Stats, the state has seen a 1.3% growth in employment across various sectors, with nearly 1.7 million Iowans employed. Many of these jobs are located in rural regions that depend on a stable, local workforce. By providing housing that workers can afford, these communities can retain skilled labor, keep local schools open, and maintain small businesses—key drivers of rural economic health.

The Need for a Vendor Buildable Area (VBA) and Regional Trade Network

In addition to housing, there is a growing need for a Vendor Buildable Area (VBA) and a regional trade network to ensure sustainable growth in skilled trade. A VBA would designate specific areas in rural Iowa where local tradespeople and suppliers can collaborate with housing developers like Origin Homes, and others, to create high-quality, affordable housing solutions.

The rural housing initiative faces a significant challenge in accessing skilled labor, as many tradespeople are concentrated in urban areas and rural-based trades are often booked months in advance. A VBA would help relieve this issue by encouraging the development of a regional trade network that connects local contractors, electricians, plumbers, and carpenters. This network would not only help keep skilled trades alive in rural areas but also create jobs and strengthen the local economy by promoting the use of local materials and labor.

A coordinated regional trade network would ensure that housing developments across Iowa’s 99 counties are both affordable and sustainable. It would allow for the more efficient construction of homes by facilitating communication and collaboration between local trade partners and developers. Moreover, this network would help reduce construction costs and timelines, making it easier to bring more workforce housing to market.

Connectivity and the Future of Rural Iowa

The future of rural Iowa depends heavily on its ability to attract and retain both businesses and residents. Housing initiatives and the development of a VBA/regional trade network would provide a foundation for sustainable growth, helping rural areas stay competitive in today’s economy.

Rural connectivity is another critical aspect of this effort. As telecommuting becomes more common, the demand for housing in rural areas is likely to increase, but this demand can only be met if these areas have the infrastructure to support modern lifestyles. Reliable internet access, along with housing and a robust local economy, will be key factors in attracting new residents to rural Iowa.

A Bright Future

The rural housing initiative is not just about building homes—it is about creating thriving communities. As demonstrated by the efforts of Origin Homes and other local developers, workforce housing plays a pivotal role in revitalizing rural Iowa. By fostering collaboration among local tradespeople, suppliers, and developers, we can ensure that Iowa’s 99 counties continue to offer affordable, quality housing that keeps rural communities alive and well.

Learn more about Origin Homes here: https://originhomesiowa.com