Rising home values impact affordable housing

3 years 6 months 5 days ago Monday, September 26 2016 Sep 26, 2016 Monday, September 26, 2016 8:34:00 AM CDT September 26, 2016 in News
By: Zack Newman, KOMU 8 Reporter
loading

COLUMBIA — Affordable housing experts are concerned by a spike in the real estate market. 

"We see folks who really want to get into home ownership and have worked hard to become gainfully employed on a full-time basis and have tried to save up the money that they will need for a down payment, but then often times they can't find a home that's in their price range," Columbia Housing Authority CEO Phil Steinhaus said. 

According to the Columbia Board of Realtors, the average cost of a single-family home sold in Boone County increased by $13,624 from August 2015-2016. Missouri REALTORS said the average selling price bumped upwards by more than five percent in the same time span across the state of Missouri. 

Steinhaus said this can lead to preventing residents from ever getting a home of their own. 

"[They] get stuck in the same rent trap, and not being able to take that leap out of renting into owning because they can't find housing," he said.

Jim Myer is a broker and the president-elect of the Columbia Board of Realtors. He said a potential cause for the bump is more demand for homes than they can be supplied. He also mentioned it could be possible the market is returning to its normal pace of growth since the 2008 housing crisis. 

Another factor for cost of homes is rising construction costs. Data published by the 2015 Affordable Housing Symposium said the cost of expenditures like storm water requirements and erosion control rose by $3,750 from 2010-2015.

Myer pointed to these fees required by the city as a potential culprit for the increase. Saying fees make developers less likely to spend the money to build homes they will be able to sell for less. 

The City of Columbia passed several ordinances to try to fix this. Randall Cole is the housing programs supervisor for the city. He said Columbia "allocated $200,000 for the development of the Lynn Street Cottages project and approved the implementation of a Community Land Trust (CLT) Organization." This would provide more opportunites for the creation of affordable housing. 

Fourth Ward Councilman Ian Thomas said construction waivers would hopefully incentivize the construction industry to create more affordable homes. 

"Developers will have the motivation to build homes that market lower than the $160,000 range by waiving some of the fees for those houses," he said. "Otherwise, it's too big of a risk for private developers."
 
Thomas said these efforts are important to maintaining a healthy community. 

"We need to focus public resources toward neighborhoods of poverty," the councilman said. "One of the challenges of people in poverty is finding affordable and safe accommodations."

More News

Grid
List
(CNN) -- The last three weeks have marked one of the most devastating periods in history for the American job... More >>
1 hour ago Thursday, April 02 2020 Apr 2, 2020 Thursday, April 02, 2020 9:52:02 AM CDT April 02, 2020 in News
As COVID-19 spreads, KOMU 8 will continue to update you about the impacts on the community. KOMU 8 News... More >>
1 hour ago Thursday, April 02 2020 Apr 2, 2020 Thursday, April 02, 2020 9:12:00 AM CDT April 02, 2020 in News
JEFFERSON CITY - Starting April 2, Jefferson City Schools is offering meals to students impacted by school closures. Students from... More >>
2 hours ago Thursday, April 02 2020 Apr 2, 2020 Thursday, April 02, 2020 8:15:00 AM CDT April 02, 2020 in Continuous News
COLUMBIA - Three separate MU Zoom sessions were disrupted by individuals who entered the meetings uninvited and used "discriminatory... More >>
14 hours ago Wednesday, April 01 2020 Apr 1, 2020 Wednesday, April 01, 2020 8:59:00 PM CDT April 01, 2020 in News
CUBA, Mo. (AP) — An eastern Missouri man was charged with making a terrorist threat after he allegedly coughed toward... More >>
14 hours ago Wednesday, April 01 2020 Apr 1, 2020 Wednesday, April 01, 2020 8:22:00 PM CDT April 01, 2020 in News
COLUMBIA – As the COVID-19 pandemic forces more people to stay indoors, the beautiful weather is still drawing plenty of... More >>
16 hours ago Wednesday, April 01 2020 Apr 1, 2020 Wednesday, April 01, 2020 6:24:00 PM CDT April 01, 2020 in News
COLUMBIA - Paying rent has become a challenge for thousands of Missourians who have lost their jobs due to COVID-19.... More >>
17 hours ago Wednesday, April 01 2020 Apr 1, 2020 Wednesday, April 01, 2020 5:49:00 PM CDT April 01, 2020 in News
COLUMBIA - COVID-19 has already changed many aspects of daily life, from visiting restaurants to attending school. Now, first responders... More >>
17 hours ago Wednesday, April 01 2020 Apr 1, 2020 Wednesday, April 01, 2020 5:09:00 PM CDT April 01, 2020 in News
JEFFERSON CITY - Governor Mike Parson addressed the public at 3 p.m. on Wednesday, saying the state plans to restrict... More >>
19 hours ago Wednesday, April 01 2020 Apr 1, 2020 Wednesday, April 01, 2020 3:45:00 PM CDT April 01, 2020 in Top Stories
As COVID-19 spreads, KOMU 8 will continue to update you about the impacts on the community. KOMU 8 News... More >>
20 hours ago Wednesday, April 01 2020 Apr 1, 2020 Wednesday, April 01, 2020 2:49:00 PM CDT April 01, 2020 in News
MONITEAU COUNTY - The Moniteau County Police chased down and arrested two people in a stolen car for multiple charges,... More >>
20 hours ago Wednesday, April 01 2020 Apr 1, 2020 Wednesday, April 01, 2020 2:30:00 PM CDT April 01, 2020 in News
FAYETTE - Central Methodist University took steps to help rural Missouri medical professionals in the midst of COVID-19 by donating... More >>
20 hours ago Wednesday, April 01 2020 Apr 1, 2020 Wednesday, April 01, 2020 2:04:00 PM CDT April 01, 2020 in News
COLUMBIA — As state and commercial testing is more available for the Missourians, the number of confirmed cases is rising.... More >>
21 hours ago Wednesday, April 01 2020 Apr 1, 2020 Wednesday, April 01, 2020 2:00:00 PM CDT April 01, 2020 in News
COLUMBIA - COMO Youth Soccer, Sporting Columbia and Columbia Select started hosting daily practices using Zoom back when school got... More >>
21 hours ago Wednesday, April 01 2020 Apr 1, 2020 Wednesday, April 01, 2020 1:24:00 PM CDT April 01, 2020 in Top Stories
(CNN) -- Postponing Tokyo 2020 will have provided a sense of relief to many Olympians but the delay in the... More >>
22 hours ago Wednesday, April 01 2020 Apr 1, 2020 Wednesday, April 01, 2020 12:51:47 PM CDT April 01, 2020 in A Brighter Tomorrow
COLUMBIA - The Columbia Public School district announced Wednesday it's putting classes on pause through the end of the week... More >>
1 day ago Wednesday, April 01 2020 Apr 1, 2020 Wednesday, April 01, 2020 10:11:00 AM CDT April 01, 2020 in Top Stories
COLUMBIA - As the weather gets warmer and plants continue to bloom, season allergies will become more of an issue... More >>
1 day ago Wednesday, April 01 2020 Apr 1, 2020 Wednesday, April 01, 2020 5:51:00 AM CDT April 01, 2020 in News
In this COVID-19 town hall, KOMU 8's Emily Spain talks with Graham McCaulley about how the ongoing pandemic has affected... More >>
1 day ago Tuesday, March 31 2020 Mar 31, 2020 Tuesday, March 31, 2020 11:42:00 PM CDT March 31, 2020 in News
Columbia, MO
Broken Clouds 59°
11am 65°
12pm 67°
1pm 68°
2pm 67°