High cost of Affordable housing
A new city heights affordable housing project has gone up at a cost of over $800k per unit. Another one below at $600k+ a unit. As the local governments struggle to manage tax payer money responsibly, they should really offer incentives to private builders to build "income restricted" at a much lower price. $220-$300/ft for vertical build costs. Merge 56 is 41,257 sq ft ...works out to $708/per sq ft all costs.
Quote from @Alex U.:
Are you expecting the California government to use taxpayer funds wisely, the same government that spends $42,000 per homeless person?
#4 All Forums Contributor
- Contractor/Investor/Consultant
- West Valley Phoenix
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#4 All Forums Contributor
- Contractor/Investor/Consultant
- West Valley Phoenix
@Alex U. First - the Govt should stay the H out of the housing industry. They know zero about it and waste money like drunken sailors....look at the $708 SF building costs for starters. If you really want to build 'affordable housing' - and the debate is still open if that is indeed an issue and how and why.... then the first thing to do is get the govt to go away. A little incentivization is fine, but the market will take care of a need if it is real.
Example - look at one of the largest building costs - the Permits and Fees of over $5 mil. $5 million? Really? And we known there are many more Govt costs such as environmental studies and the like that increase both the cost and the timeline (Which in turn increases the cost even more...)
City Heights is Gentrifying, has been for a while, I made good money there in the Mid 2000's, and it's no longer affordable for most lower income folks, period. So that doesn't mean we have a 'housing crisis', it means they need to move farther east like people have been doing forever.
Regular income people used to live in Pacific Beach too. Guess what, now they can't afford it....doesn't mean we have a 'housing crisis'.
And local Govts have always struggled to manage taxpayer money, and always will. That's why they need to not be involved in much of anything.....
#2 Contractors Contributor
- Severna Park, MD
There is plenty of affordable housing . Its just not where everyone wants to live . And the house isnt as big as you would like .
In my county we have a homestead tax credit for owner occupied houses which limits your property tax increase AND you can pay your taxes in 2 installments . BUT on an investment property there is no such thing , taxes can go up without limits . And who do you think pays the increase ? The TENANTS do , because landlords just raise the rent . So how does this help make housing " affordable"?