The high cost of affordable housing

Boston Globe ^ | 7 May 2008 | David Luberoff

[Lorianne]

IS IT getting too expensive to build affordable housing in Massachusetts?

more stories like this Emergency Hub ranks high on inner city business list What happens when doctors want to get a life? American pilots blame management for delays, poor service American pilots to protest at Logan On average, it costs more than $200,000 a unit to build such housing and many projects cost significantly more. A new proposal in the state Senate would make those projects even more expensive.

The Senate housing bill would require nonprofit entities and for-profit firms that build most of the region's affordable housing to pay construction workers the "prevailing wage," a legal term for whatever unionized workers get for doing the work. (Construction projects carried out by most public-sector entities have long been subject to this provision.)

Because wages set under prevailing wage provisions are substantially higher than non-union rates, the Senate proposal would dramatically increase the cost of affordable housing. A 2007 study by the Massachusetts Housing Partnership found that projects in cities that impose this requirement are 34-to-40 percent more costly than projects not subject to the wage rule. This means that if the bill becomes law, the state will either have to raise taxes, cut spending in other areas, or build less housing.

Noting the former outcome is unlikely and the latter two are unappealing, housing advocates generally oppose the prevailing wage provision. Union advocates, on the other hand, argue that is unfair to pit the needs of workers against the need for affordable housing.

[2ndDivisionVet]

We have lots of nice houses under $100K in Dallas/Fort Worth:

http://dallas.craigslist.org/search/rfs?query=&minAsk=0&maxAsk=99999

...and lots of good jobs: http://dallas.craigslist.org/jjj/

Maybe people should move here?

[festus]

Heck I can show you houses for 30k in Rockford, IL.

[2ndDivisionVet]

"Heck I can show you houses for 30k in Rockford, IL."

Yes, but are there numerous good-paying jobs and business opportunities in Rockford to pay the mortgage/property taxes/homeowner's insurance with, buy groceries, pay for utilities and so forth? There are in the Dallas/Fort Worth metroplex.

[Myrddin]

Idaho is a right to work state. Our housing costs are very reasonable. Even non-union people can afford them.

[EVO X]

Heck I can show you houses for 30k in Rockford, IL.

I'll show you Danville, Il and lower the bid to 25K..

[festus]

Yes, but are there numerous good-paying jobs

Yes but most are in a cash only industry which values creative marketing if ya catch my drift.

[ladyjane]

I love to read about these subsidized units in Cambridge that cost $300,000 to $400,000 to build.

Tax dollars at work to provide housing for people who will trash them within a year.

[Disturbin]

I know people in Boston who pay upwards of 50K for a parking spot. Yes, a parking spot.

[EVO X]

Believe it or not, here is one for 25K in Danville.

http://www.trulia.com/property/41411809-616-N-Kimball-St-Danville-IL-61832

[Nuc1]

IS IT getting too expensive to build affordable housing in Massachusetts?

This is a joke right? A three bedroom ranch of 1400-1600 sqft on an acre runs about 350K. If it has any flair about it then 400-425k is about right. If you want "affordable" housing you are in the 750 sqft range at about 175K and property and income taxes are out of sight. These are new stick built prices in normal small town areas. Extreme country locations are about 30% cheaper.

[gitmo]

This is one of the advantages of the US Constitution. If one state does really stupid stuff, you can pack up and move to a sane state.