The United States is grappling with a significant housing shortage, with estimates indicating a deficit of approximately 4.5 million homes as of 2024. The shortfall in housing starts and the slowing turnover in the existing home market has led to escalating housing costs, affecting individuals across various sectors, including healthcare workers, who are essential to community well-being. The supply issue is being compounded by a rise in interest rates that has effectively reduced home prices for potential buyers. The net effect of these interlocking challenges is that the healthcare workforce is living farther and farther away from their place of employment at both urban and rural facilities.
In urban areas, high housing costs pose substantial barriers to healthcare staff recruitment. To remedy the problem, Memorial Regional Health in Craig, Colo., partnered with local stakeholders to construct affordable housing units for its staff. The initiative addressed critical shortages of both healthcare and educational workers, who could not previously afford to move to the area, and helped stabilize the workforce, enhancing the hospital’s ability to deliver consistent care. The units are only available to those employees earning up to 140% of the area median income. Property deeds are further restricted by limiting the sale price to an amount comparable to when they were initially sold, based on overall inflation rather than the housing market, which tends to grow at a significantly higher rate.
Rural healthcare systems are equally, if not more, affected by housing shortages. Remote regions often lack the infrastructure or housing availability to accommodate staff, creating a bottleneck for staffing critical roles. A 2024 report by the Association of American Medical Colleges highlighted that 91% of all rural counties experience a shortage of primary care physicians. Recognizing the problem, the Queensland Government in Australia invested AU$2.1 million to develop new nursing accommodations in the rural town of Mungindi. The initiative involved refurbishing an existing residence to create six individual apartments that had shared kitchen and laundry facilities. The new accommodations were designed to support both permanent nursing staff and student placements, aiming to improve recruitment and retention in this rural area.
Both examples highlight that the challenges of workforce housing transcend geographical boundaries. Urban systems face affordability crises, while rural systems grapple with availability. In both cases, housing programs are critical to maintaining a stable and effective healthcare workforce.
Healthcare executives must recognize the critical link between housing and workforce stability. Whether partnering with local governments to develop housing projects in cities or investing directly in infrastructure for rural facilities, these initiatives must be viewed as part of the healthcare system’s broader mission to promote community well-being.
To support this vision, healthcare organizations can:
- Conduct internal surveys. Assess workforce housing needs to identify specific challenges and opportunities.
- Explore public-private partnerships. Collaborate with local government and private developers to create affordable housing solutions.
- Advocate for supportive policies. Engage in policy discussions to promote affordable housing initiatives for essential workers.
- Develop flexible housing models. Implement scalable housing solutions adaptable to both urban and rural contexts.
The housing crisis is not just a societal issue—it’s a healthcare sustainability issue. From urban centers to rural towns, the stability of our healthcare systems depends on ensuring that those who care for our communities have a place to call home. Programs like those at Memorial Regional Health and in Mungindi demonstrate that solutions are possible, scalable and urgently needed.
Eric W. Ford, PhD, is editor, Journal of Healthcare Management.
Editor’s Note: This content has been excerpted from “The Role of Healthcare Systems in Workforce Housing: An Urban and Rural Imperative,” Journal of Healthcare Management, vol. 70, no. 1.