Affordable Housing

KC topics that don't fit anywhere else.
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FangKC
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Re: Affordable Housing

Post by FangKC » Mon Sep 17, 2018 9:26 am

flyingember wrote:
Mon Sep 17, 2018 8:59 am
FangKC wrote:
Sat Sep 15, 2018 3:57 am
The fastest way to create affordable housing is to renovate existing vacant houses that are not too far gone. I don't know what the current count is, but the last I heard was that were up to 14,000 vacant houses in KCMO. Some are owned by the Land Bank. Renovating an existing vacant house is often cheaper than building a new domicile.
Roughly 1/3 of a home's total cost is from digging the foundation to roof sheathing and if those are solid it's absolutely worth a rehab. There's too many ways for a place to have rental grade everything and be super affordable if they're keeping all the walls the same.

While we were building we watched wood costs go up every month. Apparently our framing would have been 10% more expensive if we had waited just 6 months.

Yes, the trade war is making a lot of materials more expensive at a time when housing has already become too expensive for many residents.

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beautyfromashes
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Re: Affordable Housing

Post by beautyfromashes » Mon Sep 17, 2018 9:58 am

You can still buy a 3 BR house west of 71 for under $50k. The mortgage would be under $200/month. I think this is more of an education issue than a supply issue. I don’t see how you could get more affordable than that.

flyingember
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Re: Affordable Housing

Post by flyingember » Mon Sep 17, 2018 10:37 am

beautyfromashes wrote:
Mon Sep 17, 2018 9:58 am
You can still buy a 3 BR house west of 71 for under $50k. The mortgage would be under $200/month. I think this is more of an education issue than a supply issue. I don’t see how you could get more affordable than that.
With taxes and good insurance, somewhere around $260-280 per month (depends on the interest rate)

You could do some painting, do a gut rehab of a bathroom, caulk around all windows and that's still affordable. It won't show up on HGTV but that's kind of the point.

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FangKC
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Re: Affordable Housing

Post by FangKC » Mon Sep 17, 2018 9:20 pm

Yes, that is why all levels of government really need to get behind rehabbing some of the vacant housing stock we already have. The problem often is that many banks will not give loans on houses east of Troost--especially loans for rehabbing. Banks might finance a house purchase after the house has been rehabbed, but not finance the rehab costs or the purchase of the vacant house. There needs to be a financing mechanism for this.

It's a nationwide problem--financing the rehabbing of vacant houses. It's less a problem in quickly-gentrifying markets, since private investors with their own money come in to do rehabs because the profit margins are very lucrative. But in markets like Kansas City, and especially on the east side, margins are smaller, and many investors don't want the risk.

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FangKC
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Re: Affordable Housing

Post by FangKC » Tue Sep 18, 2018 11:22 pm

Housing Advocates in Portland Just Did the Nearly Impossible

They got a key city board to recommend re-legalizing small duplexes, triplexes and affordability incentives on almost any lot.

https://www.sightline.org/2018/09/17/re ... MzgyNjg3S0

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