Kentucky Housing Task Force Releases Final Recommendations

Ahead of the 2026 session, the Kentucky Housing Task Force released its final recommendations, outlining policy changes intended to increase housing supply, reduce construction costs, and improve affordability across the Commonwealth. The report follows a months-long review of statewide housing needs during the 2025 interim, led by co-chairs Sen. Robby Mills and Rep. Susan Witten.

“The task force recognizes that housing issues cannot be solved solely via changes in policy, as macroeconomic factors, such as inflation and interest rates, and national trends, have significant effects on the housing market. Nevertheless, Kentucky runs the risk of falling behind its neighbors in this crucial area. A housing shortage that continues to grow will almost certainly result in lost economic development opportunities, as businesses choose to locate to places where their workforces can afford to rent or purchase homes. The members of the task force believe that this would be an unacceptable outcome, and to avoid that outcome, they will recommend policies that the General Assembly should consider or adopt during the 2026 Regular Session,” the report says.

Since the release of the Kentucky Chamber and Home Builders Association of Kentucky report, “Building a Foundation For Growth,” the Chamber has testified before the Housing Task Force and other legislative committees to share research and recommendations on Kentucky’s housing shortage and highlight its economic impacts.

“We appreciate the work of the Housing Task Force and their commitment to tackling one of Kentucky’s most urgent challenges. These recommendations recognize what we’ve heard from communities and businesses across the state: that housing is a barrier to workforce participation and a key to economic growth. To ensure opportunity across Kentucky, we must invest in solutions that help families afford to live where they work and allow communities to thrive. We look forward to working with lawmakers to move these recommendations forward,” said Kentucky Chamber President and CEO Ashli Watts.

The Chamber’s testimony and research informed several recommendations in the final Housing Task Force report:

Infrastructure Funding

The report outlined the need for state-supported infrastructure funding to reduce the cost of new housing development. The Chamber’s housing report and testimony recommended creating a residential infrastructure assistance program modeled on Indiana’s approach, and the Task Force’s report includes a similar proposal to help address upfront infrastructure expenses and expand housing supply.

Regulatory Costs

The Chamber also highlighted the impact of regulatory requirements and building code changes on construction costs, emphasizing the importance of reviewing the cost implications of new regulations. The Task Force report reflects these concerns by recommending greater scrutiny of regulatory changes and promoting approaches that limit cost increases tied to building standards.

Local Land-Use Practices

The Task Force also addressed local land-use rules, which the Chamber noted can limit housing options and add to costs. The report recommends updating local policies to allow more flexibility and better use of urban areas, while keeping planning authority with local governments.

Predictability in Development

The Chamber also emphasized the importance of predictability and efficiency in the development process, noting that uncertainty and delays can hinder project progress. The Task Force echoed these considerations by recommending measures to provide clearer timelines and improve consistency in local review and permitting processes.

The complete list of recommendations can be found in the Housing Task Force’s final report.

Stay tuned to The Bottom Line for updates throughout the 2026 session.