So, what is affordable housing?
Affordable housing is housing people with working or pension income can afford. There are various definitions. A general rule of thumb is this: housing that costs more than 30 per cent of a person’s income is not affordable.
Why is affordable housing such a problem?
Several factors have contributed to housing becoming unaffordable for many working and retired people. Real estate prices rose sharply during the pandemic. Many homeowners who had been renting homes suddenly found they could sell them profitably, leaving their former tenants in the lurch. At the same time, very little rental housing has been built in recent years for a variety of reasons. One result, even in rural areas like ours, is a sharp increase in homelessness. And there are other related problems.
Who is affected by this problem?
The lack of affordable housing hits our entire community. When you see younger and older people staying warm in libraries on a cold winter day, that’s related to the problem. When dozens of residents find themselves couch-surfing, that’s a problem. When young workers leave the area because they can’t find accommodations, that’s related. Employers cannot find employees because workers cannot find rental accommodations or afford real estate in today’s heated market. Lack of housing for young families, in turn, hurts local businesses and the economy and leads to shortages of skilled workers.
So what should municipalities do to help create affordable housing?
There are short, medium and long-term steps that municipalities should take to meet the affordability challenge.
1. In the short term, they should encourage home-sharing programs that match individuals in need of housing with people who have spare rooms in their homes and want someone to share expenses, do chores, and provide companionship.
2. Zoning policies should encourage the development of new, affordable units within developments or on existing properties like granny flats and infill housing opportunities.
3. Municipalities should work with local people working to create new co-ops and non-profit housing that become self-financing over time. There are a variety of federal programs that can support new projects; local financing can often be obtained.
4. Create a special property tax class for affordable housing and defer taxes for one to five years for it.
5. Use land as equity in attracting developers, partnering with the local county government on an affordable housing tool kit.
6. Commit staff time and resources to encourage the development of affordable housing in our communities.
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