Why can’t Columbia find workers? Mayor says he has the answer
Columbia Mayor Daniel Rickenmann told members of the South Carolina House of Representatives that the capital city is in the midst of a “housing crisis.”
“We’re missing opportunities by not having the units here to make sure that we have a growing workforce for our future,” he said, adding that the city currently has a shortage of around 6,700 housing units.
Rickenmann testified before an SC House subcommittee on Thursday, voicing his support for a statewide tax incentive that would create more affordable housing.
That program was put on hold in January after overwhelming demand for the tax credit caused the state to lose more money than it had planned. Legislators are working to pass a new law intended to address problems with the tax credit.
Rickenmann said workers are leaving Columbia because the cost of housing is too high. In the past decade, the city has lost 9% of its population, he said. This has created challenges for employers, including the city itself.
“We’re 625 employees short,” he said. “Over 87% of our police and fire (employees) do not live within the City of Columbia limits because there’s not enough affordable units.”
Though the mayor acknowledged that the whole state could benefit from more affordable housing, he said Columbia faces an additional burden because the property taxes are so high.
A big reason for that is because much of the property in the city is owned by tax exempt entities including the University of South Carolina and various state agencies.
For the average landlord in the city, “three and a half months of rent is going to property taxes,” he said.
Rickenmann noted that the city has commissioned a study to look at how to reduce the tax rate.
“But we can’t do it alone,” he added. “Protect this affordable housing incentive and let’s continue to grow in a positive way.”
This story was originally published March 11, 2022 at 3:34 PM.
