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1538 lots. That number should have every one
of us, as well as the Board of County Commissioners, concerned.
While we understand this
number represents only lots in major sub-divisions, the fact that the BOCC has
decided to remove the exemption from testing for minor subdivisions (those
having 5 or less lots), and will now require even single lots be tested for
school capacity, and given that according to the school board there is no school
capacity available, the question needs to be asked...where will the lots come
from?
The housing market in the
county felt the impact of the moratorium in the form of increased lot (and as a
result home) prices. Some say as a result of the artificial market shortage it
created. It has been widely disputed that the moratorium had any real impact on
the prices, and that it was the market that has been driving the prices. While
this may be true in part, any shortage, either real or imagined, has been proven
to affect market prices. I don’t believe anyone can now argue the point that
the real shortage of available lots will cause the cost of housing to increase,
again.
Currently seated in the
County today is a Task Force that is grappling with how to provide more
workforce housing in the county. I understand that they were presented with
information that a workforce priced house
can
be built, however, that is only if it is
placed on a free lot. Until such time as the average lot goes down below
$90-$120,000 providing workforce housing in the County will be difficult.
We as an industry have
seen the costs of materials continue to climb over recent months, some items
increasing on a monthly basis. The destruction in the South could cause prices
to rise again, given that ports and processing plants were destroyed. The
rebuilding effort of billions of dollars could cause a shortage of materials,
either real or manufactured. We all felt the impact of the gypsum shortage
several years ago and the price increases that accompanied it. While shortages
are speculative, given the cost of fuel today, transportation costs have
increased and with it the cost of goods.
The reason I mention this
is that government must take into consideration, when discussing the price of
housing, the factors and costs that directly affect it. It is very easy to
place the whole blame for the cost of housing squarely on the shoulders of the
builder, however careful analysis will show that, it is not all “what the market
will bear.” It is a direct result of the cost of materials, goods, labor and
land, and regulatory costs.
We are all business
people, we are in the shelter industry because we enjoy watching a family
realize their life long dream. We also have families and employees and their
families and our suppliers and their employees and their families to support.
We are no different than any other industry, we should be allowed to realize a
return on our product.
We are one of the only
industries in the country that are questioned when our product price increases
and are then expected to explain why.
Economists have stated
that the “housing bubble” is not going to burst, and even if it were to decline
the price of housing has never decreased during a slow down. What this
translates to is that until government realizes that it bears as much
responsibility for the cost of housing as the builder, the price of housing will
continue to be further out of the reach of the median income family.
Be sure to attend the
September General Membership Meeting to hear Planning Director Mike Thompson
talk about development in the County. |
