Affordable housing is not a problem for just first-time home buyers or Millennials anymore.
According to the Atlanta Regional Commission article released in April of 2019,* "Most metro Atlanta neighborhoods are no longer affordable for families earning less than $50,000 a year, making it hard to afford essentials like food, healthcare and clothing."
Affordable housing is now a problem across multiple generations. With home prices continuing to rise, land becoming scarce and the frightening "R" (recession) word on the horizon, where does this leave the housing market? Renting doesn't seem to be a long-term solution, given how quickly rental rates are escalating. So, this begs the question, where are the more affordable homes going to come from? How do we get new generations of people into their “dream” homes when their dream costs four or five times what they make in an annual salary? And, how do other generations “downsize” into a smaller home that costs more than their current home costs? I mean, who wants to go into debt again in their Golden Years?
Again, the Atlanta Regional Commission and the Federal Reserve Bank of Atlanta* have some insight here, "Rental costs have increased 48 percent since 2010 and have outpaced wage growth in the region. In addition, Atlanta loses 1,500 affordable housing units annually. This means that each year there are 1,500 fewer units of housing available to moderate-, low- and very low-income families. Typically, this housing is either replaced by higher-cost housing or rent simply increases beyond what many families can afford. The result? These families either leave the region or are burdened by housing costs that negatively impact their lives."
The affordable housing struggle is real, and we must press forward. But how do we do that? How do we overcome these obstacles? This is where I come in, but you probably saw that coming right. Yes! A Realtor® can make all the difference in your buying or selling experience. We are trained to evaluate the market conditions on a daily basis, and watch for the ups and downs, as well as the warning signs of what’s to come. What are some of the things we look for?
- The very latest listings in affordable neighborhoods
- Differences in tax rates by city. A $150,000 house may not be affordable with one city’s tax rate, but may be with a lower tax rate somewhere else
- Interest rates. A drop in interest rates increases your ability to afford a higher loan amount.
- Legislative changes related to federal housing.
- Houses to be auctioned. In some neighborhoods, this is the last best chance to find an affordable home.
Can we magically make more affordable housing appear? No! Of course not. But what we can do is stay diligent and watch the market you need to be in and advise you when it is the right time to move on a home, whether buying or selling. We are your lifeline in this sea of rough waters. We want to help build better neighborhoods, better communities, better cities and, most of all, better lives for those we work with.
Make sure you have a Realtor® on your side. It’s what we do, and it’s who we are!
____________
*Information provided by the Atlanta Regional Commission and Federal Reserve Bank of Atlanta. Article written by Marquita Bundrage and Kate Sweeney. Published April 3, 2019.
