“Home ownership is the cornerstone of a strong community.” – Rick Renzi
Supply and demand. The market system. Capitalism. Entrepreneurs. Buying/Selling.
No doubt about it, we Americans are blessed with an
The market system works. Or does it?
When it comes to housing, it doesn’t work very well. Not well at all, based on the legal declaration approved by Congress in the 1949 Housing Act, when our representatives declared “a decent home and a suitable living environment for every American family” to be our public policy.
Yet, today, research demonstrates that as many as 100 million residents of the
Stop for a minute to make sure you understand what “affordable housing” really means. Of course, most builders tell you they are building “affordable” housing – they just don’t tell you which families can actually afford their new homes. City and county officials often proclaim their support for affordable housing without telling you what they mean.
So, since 80 percent of the median family income in
Didn’t I read somewhere recently that the average home sale here was around $225,000? What that means is that about 80,000 people in Doña Ana County are forced to rent – often paying more than 30 percent of their income – or live in substandard housing or mobile homes, which are usually financed at excessive rates and do not appreciate in value. No question about it, the market has priced a lot of families out of the ability to buy a home.
Local governments must help
So, why isn’t the market working? Isn’t it possible to build an affordable home here? Of course it is. Costs of construction may have gone up somewhat, but prices – and profits – have gone up excessively. Still, local non-profit developer-builders are able to build homes for under $100,000, including land costs.
So, where is our lofty government policy as defined above under state and federal law? Why aren’t local, state and federal officials vigorously implementing this policy?
To be fair, the federal government has been carrying its share of the burden through its direct housing programs via HUD and the U.S. Department of Agriculture, and through its loan guarantee, loan purchase and tax credit programs.
And at the state level, the Mortgage Finance Authority has made some progress. It could do a lot more, in this writer’s opinion, but it is attempting to respond to the governor’s Invest New
The truth is that action in affordable housing should be at the local level. City and county government have done little, except to pass on federal money. They have given lip service and passed resolutions, but last time I checked, neither city nor county had appropriated any general-fund money toward affordable housing. Nor have they adopted policies such as inclusionary zoning or other incentives and regulations that would cause more truly affordable units to be built.
Until the public, and our public officials, fully comprehend the situation, I don’t expect much more than lip service being given to this issue. However, right now would be a good time to engage it, since the city and county are beginning their 2040 master planning exercise.
I encourage them to consider carefully the implications of their planning as it relates to affordable housing. Improving access to affordable housing is critically important for this community to achieve both economic and social health. As Abraham Lincoln once said, “The strength of a nation lies in the homes of its people.” He was right.
Kadlecek has lived in