Boosting Rural Housing: How Partnerships and Innovations Are Changing the Game

Explore the collaborative efforts and innovative strategies transforming rural housing in Iowa through public-private partnerships, trade networks and affordable housing resources in a recent podcast featuring Debi Durham, Director of the Iowa Economic Development Authority (IEDA) and Iowa Finance Authority (IFA), and Matt Daniels, Director of Operations for Origin Homes.

The Rural Housing Challenge in Iowa

Rural Iowa faces significant challenges in housing development, primarily due to a limited housing inventory and aging housing stock. Many communities lack the resources and infrastructure to support new developments, leading to a situation where the workforce commutes long distances due to a lack of available housing close to their jobs.

According to Debi Durham, Director of IEDA and IFA, "Housing is critical for economic development because it has been an impediment to our growth, particularly in rural Iowa."

The Role of Origin Homes in Rural Development

Origin Homes, a division of Hubbell Realty Company, has taken a proactive role in addressing these housing issues in rural Iowa. Origin Homes is dedicated to building high-quality homes on shovel-ready lots across rural communities.

“It’s been a whirlwind being able to research these communities Housing Readiness Assessments, visiting the lots and leadership and seeing housing come to fruition thanks to the ongoing partnerships,” said Daniels.

Unlike traditional developers, Origin Homes focuses on custom-built homes tailored to the unique needs of homeowners and communities — benefitting from IEDA’s Workforce Housing Tax Credits to help offset the purchase price of the home to the homebuyer. This approach not only fills the housing gap but also strengthens the fabric of rural Iowa and the towns’ property tax base.

Origin Homes Rural Housing Initiative

Origin began their Rural Housing Initiative in 2023 when they selected Knoxville, Manning and Gowrie as their first housing communities. Origin built five homes in each town, for a total of 15 homes, all aimed at increasing workforce housing options in rural areas with homes starting at just $250,000.

Origin announced Knoxville, Conrad and Jefferson last August as their 2024-2025 communities and plan to release more renderings and timing for those later this spring.

"We go into smaller communities and try to put up three to five homes at a time," says Daniels. “We’re designing the homes based off of what the community survey and leaders say is needed whether that’s two beds, three beds, ranches or two stories, our team designs it with functionality and budget top of mind.”

As an example, Origin has already sold two of the five homes under construction in their second phase of Knoxville’s Veterans District after selling all five in the first phase in 2024.

The homes, two ranch plans and one two-story, feature a variety of new finishes and square footages ranging from 1,300 up to 2,100. All the homes have updated interior finishes, alley loading garages and are within walking distance of Veterans Park, Knoxville High School and the Knoxville Raceway.

This targeted approach not only increases housing availability but also stimulates local economies by creating jobs and supporting businesses.

"We have a checklist that we put together for our communities … We've sent out a first set of questions to assess readiness: Have they done any kind of rural housing readiness planning? What is the overall population growth?" asked Daniels.

This community-first approach ensures that each new home contributes to long-term local development.

Director Durham's Vision for Iowa's Economic and Housing Growth

Director Durham has a comprehensive vision for Iowa's economic and housing growth, focusing on integrating various elements of economic development and housing under one roof.

"Now that IEDA and IFA are together, everything that touches economic or community development is now in one place. So, it's a one-stop shop," says Durham.

Her leadership encourages collaboration between state agencies, local governments, and private developers like Origin Homes to create sustainable housing solutions.

"It does take a partnership. There does need to be city involvement. We're even encouraging more and more employers to step up," she notes.

By fostering strong partnerships, Durham aims to create housing that supports workforce retention, local business growth, and long-term community prosperity.

The Importance of Trade Partner Networks

One of the critical components in addressing the rural housing crisis is the development of robust trade partner networks. These networks help ensure that there is a steady supply of skilled labor to build and maintain new housing developments. "We call it a VBA, vendor buildable area. Basically, it's a regional trade base," explains Daniels.

By identifying and partnering with local tradespeople, Origin Homes ensures each project is completed efficiently and to a high standard — while also bolstering local economies.

"While we're moving across Iowa and talking to communities, we're also tracking and logging any trades that are interested in working with Origin," he says.

This emphasis on local labor and craftsmanship strengthens communities and creates job opportunities in the construction sector.

Public-Private Partnerships Driving Change

Public-private partnerships are a cornerstone of rural housing revitalization in Iowa. These collaborations bring together the resources and expertise of both the public and private sectors to create attainable and sustainable housing solutions.

One successful example of such a partnership is Origin Homes’ work with state agencies to leverage the Workforce Housing Tax Credit program. This program provides tax incentives for developers to build affordable housing, making financing new projects easier.

"In our first year applying for workforce housing tax credits, we were granted approvals for three communities — Knoxville, Manning and Gowrie," says Daniels. “That was a difference maker for us and the homebuyer. That means the overall price for the home becomes that much more achievable.”

These collaborations reduce financial barriers and accelerate housing development in rural Iowa. When cities come together, Durham says it makes all the difference.

Resources for Affordable Housing in Rural Areas

Several resources support affordable housing initiatives in rural Iowa. The Iowa Finance Authority offers down payment assistance programs to make homeownership more accessible.

"We work with a network of 400 lenders across the state, and we have a down payment assistance program that’s 5%, no cap on the price of the home," explains Durham. These financial resources lower barriers to homeownership for families in rural Iowa.

Find more information here.

Future Outlook for Rural Housing in Iowa

The future of rural housing in Iowa looks promising, thanks to collaboration among organizations and ongoing state initiatives. With a focus on strategic partnerships, innovative construction approaches and locally driven homebuilding, there is great potential for transformation.

"We believe we need 21,000 more housing units by the year 2030," states Durham. By leveraging public-private collaborations, tax incentives, and trade networks, Iowa is on track to meet these housing needs and create a sustainable future for rural communities.

"Never let yesterday's disappointments overshadow tomorrow's dreams," says Daniels, encapsulating the forward-looking spirit driving these initiatives. With continued innovation and investment, rural Iowa can grow stronger, support its workforce and offer high-quality housing opportunities for generations to come.

Want to hear the full conversation? Listen to the podcast below:

 

Searching for a custom home? That’s Origin’s specialty — building custom homes across Iowa’s 99 counties. Learn more here.

Greater Des Moines (DSM) has one of the best business climates in the country. The region is nationally recognized for having a talented and educated workforce, a cost of doing business 13% below the national average, a low cost of living and an exceptional quality of life. In 2022, Site Selection Magazine named it a top metro for a number of economic development projects.