Habitat for Humanity’s Kevin L. Smith outlines zoning barriers, rental-market pressures, and the need for policy reforms to meet demand for 20,000 additional low-income homes
WILMINGTON , DE — The Wilmington Rotary Club gathered Thursday morning at the Hotel du Pont to hear a sobering but solutions-focused update on Delaware’s affordable housing crisis from Kevin L. Smith, CEO of Habitat for Humanity of New Castle County.
Smith, who has led Habitat’s local chapter for the past 30 yearss through a period of growing demand and shrinking inventory, told Rotarians that Delaware is facing a “severe and worsening shortage” of affordable homes — with an estimated need for 20,000 additional low-income housing units just to meet the needs of current residents. The figure comes from the Delaware Housing Alliance and underscores what advocates have warned for years: the state’s housing pipeline is not keeping up with the need, and the problem is growing.
A Shortage That Ripples Across Families, Schools and Health
Smith said the impact goes far beyond housing statistics. Overcrowded homes and unstable living conditions, he explained, create significant challenges for children, from classroom performance to long-term health outcomes for all residents, especially the elderly.
“Every delay in building affordable housing shows up in a child’s life sooner or later,” he told the group. “We see it in instability, a lack of sleep, higher stress levels, and academic struggles.”
He pointed to a University of Delaware study identifying the biggest drivers of Delaware’s housing shortage:
For Habitat for Humanity, which relies heavily on acquiring land suitable for multi-unit projects, those zoning and permitting hurdles directly slow production and raise costs.
NIMBY Misconceptions Still a Barrier
Smith also addressed what he called persistent misconceptions surrounding affordable housing — particularly “Not In My Back Yard” (NIMBY) opposition that often arises during public hearings.
“In the case of NIMBY, the public has the wrong idea about the kind of families who move into a Habitat home,” he said. “We help nearby residents separate myth from reality, but that takes time and money — and it slows down projects people desperately need.”
Legislative Challenges From Dover
Another emerging obstacle, Smith said, comes from well-intentioned but problematic legislation designed to strengthen renter protections. While supporting tenant rights is important, Smith cautioned that some recent policies have gone too far, discouraging property owners from renting or investing in additional units.
“When the environment becomes too burdensome for landlords, some simply stop participating — and that reduces supply,” he said. “State officials need to find the right balance.”
A Housing Continuum Under Strain
Smith described Delaware’s housing landscape as a continuum ranging from homelessness support and emergency shelters to transitional housing, social housing, affordable rentals, and finally affordable homeownership — where Habitat for Humanity operates.
But instead of progressing upward through that continuum, too many Delawareans are moving in the opposite direction.
“In this market, people are sliding down, not climbing up,” Smith warned.
He noted there is currently only one Hope Center in New Castle County providing transitional shelter, even though the need requires at least nine. In addition, the lack of affordable housing to buy puts pressure on the low-income rental market because families who would otherwise move into starter homes can’t move up and out of lower-cost units.
That dynamic keeps units filled longer, limits options for the lowest-income renters, and further strains a system already under pressure.
Proposed Solutions and a Call for Balance
Smith outlined several strategies to expand affordable housing and stabilize the market:
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Increase funding for low-income housing construction.
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Reduce permitting delays and regulatory burdens that slow development and add cost.
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Adopt inclusionary zoning policies that require or incentivize affordable units in new projects.
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Reevaluate how state and county-owned land can be used to accelerate affordable development.
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Rebalance renter protections with landlord incentives to prevent further decline in available housing.
Smith emphasized that Habitat for Humanity is only one part of the solution — but an important one.
“Housing is the foundation for everything else,” he said. “When families have a safe, stable, affordable home, everything improves — education, health, job stability. We need a community-wide commitment to rebuilding that foundation.”
Rotary members thanked Smith for his advocacy and leadership, noting that the club continues to support organizations addressing housing, hunger, and family stability across Wilmington and the region.
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