The Affordable Housing Crisis & You
From the lasting impacts of Hurricanes Irma & Maria coupled with telling statistics, it is clear that Florida, along with most of America, is in the midst of an affordable housing crisis. For homeowners and non-homeowners alike, just hearing the word “crisis” can cause some concern, and straightforward information to educate yourself can be hard to find. That’s why in this blog, we’re highlighting the main statistics you should know about this ongoing issue, give you hope and insight as to how real estate agents are helping to combat the crisis, and show you what you can do during this time.
What’s Going On
➔ Put simply, Florida and many other states across the country are in this affordable housing crisis because supply isn’t meeting demand. According to Keller Williams, the housing market is missing over 2 million homes this year. Why is this happening? Labor, resource, and land costs are at an all time high, discouraging builders and prompting them to abandon these affordable starter homes that new prospective homeowners usually purchase.
➔ Home prices historically grow at around a healthy rate of 4% a year, according to economists; this year, they’re looking to get close to 6%.
➔ A substantial student loan debt is common among those who are factually at the age to become homeowners, subsequently pushing the age for when the current generation buys starter homes back several years.
➔ As a result of the above, the amount of people buying starter homes or upgrading to larger homes has decreased, and the price of rentals are also increasing significantly.
How Real Estate Agents can Help Solve the Problem
➔ Getting involved: A number of real estate agents are joining the National Association of Realtors Political Action Committee. As described on their website, “The National Association of REALTORS® advocates every day on behalf of the nation's 1.3 million REALTORS® and 75 million property owners. NAR is widely considered one of the most effective advocacy organizations in the country. We work for you by advocating for federal, state, and local policy initiatives that strengthen the ability of Americans to own, buy, and sell real property. We also work with you, by providing a wide variety of resources to foster and harness the grassroots strength of the REALTOR® Party.”
➔ Political Advocacy: In Florida specifically, there was a trust fund created in 1992, titled the “William E. Sadowski Affordable Housing Trust Fund”, with the purpose of aiding affordable housing initiatives by taking a portion of taxes paid on real estate transactions. Lately, however, the Florida legislature has designated only a very small portion to these initiatives and instead is using it for other priorities. Real estate agents and community members alike can voice their concerns on this matter to help assist during this time.
What You can do to Help
➔ Check out this article by Forbes Magazine titled, “How You Can Help Fix America's Affordable Housing Crisis (And Earn Returns In The Process)”. Don’t hesitate to contact Collins & Company with any questions you may have on this matter!