The Need fo Affordable Housing
During the last 3 years, we have experienced a tremendous
appreciation in the priced of homes in Palm Beach County, with a
30% increase in the last 12 months. This has created a situation
where the average wage earner is not able to afford a home. The
average price for a condo is $155,000, townhouse $185,000 and
single family home is $327,000. While these are still affordable
to many, there are added costs. For condo's and town homes, the
monthly maintenance is on an average $200 a month. For a single
family home, the association fees average $150 a month. The next
factor is the tax rate. The rate is approximately 2% of the
purchase price. Furthermore, insurance is also an additional
factor. If a buyer purchased a $200,000 town home, he would
incur the following monthly expenses. The mortgage would be
$1200 a month at a 6% rate, maintenance of $175 and taxes of
$330. This results in a total monthly payment of $1705, which is
beyond the means of the average consumer. The major problem the
consumer faces, when trying to locate affordable housing is that
the cost of a home is a higher percentage of their take home pay
then many can afford. From my personal experience, I have had
many clients searching for months for homes to no avail. The
county has recently developed a plan to build affordable housing
in a section of Boynton Beach Florida for people who make under
$38,000 a year. This is hopefully the start of trend to provide
affordable housing for a large portion of the population, who
has been unable to find a place to call home. Larry Lang e-PRO
REALTOR