In today's Boston Globe, there was an article on the affordability of housing in the Boston region which mentioned potential legislation that would require towns and cities to promote the construction of "starter homes".
Here is a blurb from the article.
"...propose legislation later this year that would either require or encourage municipalities to promote construction of "starter homes," which are in short supply in Boston's suburbs. The houses would be modest , on lots of 1,700 square feet or less, priced so families earning between about $80,000 and $130,000 could afford them."
Could it be that the true need for smaller housing is there but that the outrageous market of recent years has preculded the development of anything small. But 1,700 square-foot lots?? That must be a typo, right?
On May 21st, the Connecticut Post published an article stating that the State has proposed a bill that would provide up to $10 million to towns to support the development of affordable housing. This is the result of a study by Northeastern University's Barry Bluestone which stated that the cost of housing in Connecticut has led to a migration of 10% of the young working poplation.
Should State's really get involved in this market-driven housing issue? Could cottage development styles be one solution?
These developments have popped up in the pacific northwest as a way to provide "small" housing options for the empty-nesters and small families, and single people at a lesser price than a typical newly constructed single-family home would cost.
Tuesday, June 12, 2007
Monday, June 4, 2007
Affordable for Who!
Date of entry is really August 12, 2006!!!
The price of homeownership has been rising faster than income levels in much of the country which contributes to this problem that my family, as well as thousand of others, have been faced with. The low interest rate, albeit rising, environment has allowed people to buy homes that they wouldn't have normally been able to afford. Myself included. What's wrong with this picture? Interest rates have been rising at a conservative level for a year now and mortgage rates have, until recently, continued to decline. Would you have imagined ever seeing a 5%, 30 year fixed interest rate in the 1980's when rates were in the high teens! The spread on the 5 year ARM and the 30 year fixed became so close recently I wondered if anyone would dare lock an adjustable rate. We rolled the dice with -dare I say it publicly- an interest only, 3 year adjustable rate. I know experts are cool on the interest-only adjustable rate, but life events will force us from our two-bedroom, 1200 square-foot condo in another year or two when we, god willing, expand our family. For us, the interest only option made sense. To many others, its a risk.
The quest for homeownership has become an interest rate game more so than any other time in recent memory because of the unaffordability of many cities and towns. When we talk about $300 per square foot as being inexpensive for a condominium in the megalopolis, its tough for your "average Joe" to make a dent in the ownership arena. Lets not even mention the $1000 per square foot condominiums in Boston and New York. Its down right scary!
The price of homeownership has been rising faster than income levels in much of the country which contributes to this problem that my family, as well as thousand of others, have been faced with. The low interest rate, albeit rising, environment has allowed people to buy homes that they wouldn't have normally been able to afford. Myself included. What's wrong with this picture? Interest rates have been rising at a conservative level for a year now and mortgage rates have, until recently, continued to decline. Would you have imagined ever seeing a 5%, 30 year fixed interest rate in the 1980's when rates were in the high teens! The spread on the 5 year ARM and the 30 year fixed became so close recently I wondered if anyone would dare lock an adjustable rate. We rolled the dice with -dare I say it publicly- an interest only, 3 year adjustable rate. I know experts are cool on the interest-only adjustable rate, but life events will force us from our two-bedroom, 1200 square-foot condo in another year or two when we, god willing, expand our family. For us, the interest only option made sense. To many others, its a risk.
The quest for homeownership has become an interest rate game more so than any other time in recent memory because of the unaffordability of many cities and towns. When we talk about $300 per square foot as being inexpensive for a condominium in the megalopolis, its tough for your "average Joe" to make a dent in the ownership arena. Lets not even mention the $1000 per square foot condominiums in Boston and New York. Its down right scary!
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