It’s been a problem in places such as California, and now it’s
becoming a significant factor in Florida. The lack of affordable
housing is making it difficult to attract workers.
“We’ve been grappling with this for years,” said Volusia County
Department of Economic Development Director Rick Michael. “Volusia
County Schools’ ability to recruit new teachers has been affected;
hospitals’ ability to attract nurses and other medical professionals
has been affected. Now our manufacturers are feeling the effects of
rapidly rising real estate values and the diminishing inventory of
affordable homes.”
It appears Volusia County has been discovered.
“Volusia County has been a diamond in the rough,” said Anthony
Viscomi, vice president of Viscomi Hansard Builders, whose portfolio
of homes ranges from town homes to custom estate homes. “But the
secret’s out now and people are recognizing the entire area as a
wonderful place in which to live, work and play. That has driven the
price of homes up exponentially. People who are here want to stay
and people who live in less desirable communities want in. But while
increased property values may provide challenges to buyers of fine
homes, they can make the purchase of more modest homes and starter
homes prohibitive.”
And that’s the challenge. Executives may be able to afford to buy
or build a home in the area. But the workers he or she supervises
may not. The result is upward pressure on wages and salaries and the
associated cost of labor, which traditionally has been modest for
area employers.
The median home price in Volusia County now exceeds $220,000,
according to Fran Gordon, Executive Director of the Mid-Florida
Housing Partnership, which is dedicated to helping low- and
moderate-income families qualify for home mortgages. Her
organization supports the availability of decent, affordable housing
for lower income persons. It seeks to expand opportunities available
to very low, low and moderate income citizens and to raise the
economic, educational and social levels of the residents of Volusia
and Flagler counties and Daytona Beach. Programs include the State
Housing Initiatives Partnership (SHIP), fair housing outreach and
education, HUD-certified credit and foreclosure counseling, money
management workshop, small business development classes and more.
Federally funded programs, such as the Hope VI initiative, also are
helping to replace dilapidated housing with new residences for
economically diverse residents.
“These programs are helpful,” she said. “But the degree to which
they help can be eroded by soaring prices. Even when families can
qualify for assistance in borrowing funds for a down payment and
mortgage payments, they may not be able to afford to make the
payments on those loans. And many of the down payment assistance
programs cap the allowable purchase price at $189,000, which is a
price that is getting harder to find.”
Gordon also spoke of situations where buyers study the tax
history on a prospective home only to be shocked to learn that under
new ownership, real estate taxes would escalate significantly
higher, putting the deal beyond their reach.
The convergence of rising real estate prices that far eclipse
wage increases has formed a sort of “perfect storm” for employers.
This has not been lost on the Florida Legislature, which is
reviewing dozens of bills in response to the crisis. Community
awareness, government action and some moderation in the increase of
home values is leading to optimism the crisis is being managed.
But, as with all complex issues, a communitywide effort will be
required for a long-term solution. Local governments will weigh the
benefits of regulations and land use restrictions with their effect
on the availability of land for affordable housing. Lenders will
review home loan qualification criteria to remain inclusive for
buyers in the moderate and low end of the market. Organizations will
consider incentives for workers whose decision whether to accept
employment may hinge on the ability to buy a home.
“While healthcare has been a benefit of primary importance to
workers, housing assistance could become equally important,” said
Gordon. “In fact, we don’t even call it affordable housing anymore.
The more definitive term is workforce housing.”
