Rising home values impact affordable housing

3 years 6 months 1 week 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
COLUMBIA - You've probably heard it just about everywhere: staying active while staying home is important. It's especially important... More >>
1 day ago Friday, April 03 2020 Apr 3, 2020 Friday, April 03, 2020 11:54:00 AM CDT April 03, 2020 in Top Stories
AUDRAIN COUNTY - SSM Health St. Mary's Hospital in Audrain County will open its own drive-thru COVID-19 testing site starting... More >>
1 day ago Friday, April 03 2020 Apr 3, 2020 Friday, April 03, 2020 11:36:00 AM CDT April 03, 2020 in News
ST. LOUIS — At least 27 long-term care facilities in Missouri have at least one resident or employee who has... More >>
1 day ago Friday, April 03 2020 Apr 3, 2020 Friday, April 03, 2020 8:21:00 AM CDT April 03, 2020 in Top Stories
In this COVID-19 town hall, KOMU 8's Emily Spain talks with Dr. Christopher Sampson from MU Health Care about the... More >>
1 day ago Thursday, April 02 2020 Apr 2, 2020 Thursday, April 02, 2020 9:52:00 PM CDT April 02, 2020 in Continuous News
COLUMBIA - As Missouri gears up for a long fight against the COVID-19 pandemic, University of Missouri System leaders are... More >>
1 day ago Thursday, April 02 2020 Apr 2, 2020 Thursday, April 02, 2020 5:38:00 PM CDT April 02, 2020 in News
HOWARD COUNTY – As public safety agencies face major personal protective equipment shortages, a local dentist is making sure first... More >>
2 days ago Thursday, April 02 2020 Apr 2, 2020 Thursday, April 02, 2020 4:34:00 PM CDT April 02, 2020 in News
COLUMBIA - Business is slow just about everywhere in mid-Missouri, but one local shop owner is using this time to... More >>
2 days ago Thursday, April 02 2020 Apr 2, 2020 Thursday, April 02, 2020 4:07:00 PM CDT April 02, 2020 in News
COLUMBIA – Although it may not be the first thing that comes to mind, real estate is considered an essential... More >>
2 days ago Thursday, April 02 2020 Apr 2, 2020 Thursday, April 02, 2020 2:32:00 PM CDT April 02, 2020 in News
COLUMBIA - Eighth grade English teacher Kelsey Roy is ready to be back with her students. Not over Zoom, but... More >>
2 days ago Thursday, April 02 2020 Apr 2, 2020 Thursday, April 02, 2020 2:32:00 PM CDT April 02, 2020 in News
JEFFERSON CITY - Jefferson City Schools started offering a new way for students to receive meals during extended school closures... More >>
2 days ago Thursday, April 02 2020 Apr 2, 2020 Thursday, April 02, 2020 2:21:00 PM CDT April 02, 2020 in News
CNN - The Democratic National Convention has been pushed back to the week of August 17 in the wake of... More >>
2 days ago Thursday, April 02 2020 Apr 2, 2020 Thursday, April 02, 2020 12:31:00 PM CDT April 02, 2020 in News
According to a new study from the University of Georgia, hot weather can take a toll on your mental health.... More >>
2 days ago Thursday, April 02 2020 Apr 2, 2020 Thursday, April 02, 2020 12:00:51 PM CDT April 02, 2020 in A Brighter Tomorrow
COLUMBIA - The University of Missouri announced they will be postponing commencement. The ceremonies were originally scheduled for May 15-17.... More >>
2 days ago Thursday, April 02 2020 Apr 2, 2020 Thursday, April 02, 2020 11:10:00 AM CDT April 02, 2020 in News
In this COVID-19 town hall, KOMU 8's Emily Spain talks with Greg Tucker about how small businesses are struggling and... More >>
2 days ago Thursday, April 02 2020 Apr 2, 2020 Thursday, April 02, 2020 10:58:00 AM CDT April 02, 2020 in News
COLUMBIA - Two former Mizzou football players are attempting to turn negatives around COVID-19 into an opportunity for the community.... More >>
2 days ago Thursday, April 02 2020 Apr 2, 2020 Thursday, April 02, 2020 10:28:00 AM CDT April 02, 2020 in News
(CNN) -- The last three weeks have marked one of the most devastating periods in history for the American job... More >>
2 days 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 >>
2 days ago Thursday, April 02 2020 Apr 2, 2020 Thursday, April 02, 2020 9:12:00 AM CDT April 02, 2020 in News
COLUMBIA - Three separate MU Zoom sessions were disrupted by individuals who entered the meetings uninvited and used "discriminatory... More >>
2 days ago Wednesday, April 01 2020 Apr 1, 2020 Wednesday, April 01, 2020 8:59:00 PM CDT April 01, 2020 in News
Columbia, MO
Broken Clouds 41°
5pm 47°
6pm 47°
7pm 50°
8pm 48°