Affordable Housing

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

Post by Highlander »

This table was posted on City Scene today. It shows KC is one of the most affordable large cities for singles renting an apartment.

https://www.renthop.com/studies/nationa ... YJAZ692Bfg
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AlkaliAxel
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Re: Affordable Housing

Post by AlkaliAxel »

Highlander wrote: Fri Jan 07, 2022 12:14 pm This table was posted on City Scene today. It shows KC is one of the most affordable large cities for singles renting an apartment.

https://www.renthop.com/studies/nationa ... YJAZ692Bfg
I'm sorry but I hate when they do a "large cities" list and then you see Tulsa, Wichita, Oklahoma City, Omaha, etc. It just skews the whole list.
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FangKC
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Re: Affordable Housing

Post by FangKC »

I can believe how much the Y2Y rent increases have been in places like Boston, San Antonio, Phoenix, and Denver.
Last edited by FangKC on Fri Jan 07, 2022 4:11 pm, edited 1 time in total.
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alejandro46
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Re: Affordable Housing

Post by alejandro46 »

Quinton Lucas:

“There has been this kind of a false choice presented to Kansas Citians for years, which is that you cannot both reform incentives and housing policy and also have a city that's growing in population” — and business development and attraction."

https://twitter.com/QuintonLucasKC/stat ... 2143280129

Obviously I don't think that's accurate. A bunch of developers got proposals in right before it went into effect. Any new propsals have been super high end new construction that wouldn't have needed any subsidies anyways.
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Re: Affordable Housing

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We need about three years to see what total effect it will have. If a lot of projects dry up in KCMO, and instead get built in NKC, Gladstone, and Kansas, we will know the results for sure. If they still get built along the streetcar line, then we know that it's a good enough incentive by itself. If only projects get built along the streetcar line, and nowhere else, then we also will learn cause and effect.
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Re: Affordable Housing

Post by alejandro46 »

https://twitter.com/quicktake/status/14 ... 89345?s=21

Austin @MayorAdler is pushing to build more affordable housing as the city becomes a prime destination for booming companies like Tesla.

$300-$500m borrowing to create affordable housing.
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AlkaliAxel
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Re: Affordable Housing

Post by AlkaliAxel »

Bough & Platt are doing a seminar on affordable housing in KC and how to fix it. It just mind boggles me that we are killing projects left and right and making this to be a bigger issue than it is in one of the most affordable cities. How can we make this out to be such a crisis in a city that's affordable. We're idiots.
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Re: Affordable Housing

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Wall Street Is Buying Starter Homes to Quietly Become America’s Landlord

Private equity money is pouring into the Phoenix real estate market, turning first-time homebuyers into renters.
...
He saw families getting outgunned by investment firms that could afford to pay $450,000 for a $400,000 house. Rents on single-family homes were also rising fast—up 19% in the Phoenix metro area during the pandemic, according to Rick Palacios, research director of John Burns Real Estate Consulting LLC. The result was that buyers could lose out on a home and see it resurface at a rent that was hundreds of dollars a month more than what they would have paid to own it with a mortgage. “The way I see it, they’re stealing from first-time homebuyers,” Vidana says. “They’re trying to push this idea that your first step is not to buy a house anymore, your first step is to rent.”
...
At first, Vidana wasn’t too worried about the new buyers, because homes were still affordable. In 2019 he’d helped a client sell a house in Surprise, a suburb 30 miles northwest of downtown Phoenix, to a Japanese company. The buyer, a family-owned conglomerate called Yamasa, redid the kitchen and listed the house for rent at a price that seemed unrealistic. But it rented, and Yamasa’s agent started blasting him with emails, offering cash for other homes. Yamasa, which did not respond to requests for comment, has since become a prolific buyer of rental real estate, acquiring hundreds of homes in the Phoenix suburbs and thousands of other properties across the U.S.
...
Pretty soon, capital followed. By the middle of 2021, speculation accounted for roughly half of all home purchases in Phoenix, says Palacios, the real estate researcher. Most of the activity was driven by small landlords and home flippers, who targeted affordable homes near good schools—the same places Vidana’s clients coveted.

The suburban gold rush also proved irresistible to private equity giants, sovereign wealth funds, life insurers, and everything in between.
...
https://www.bloomberg.com/news/features ... nt=citylab
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Re: Affordable Housing

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Cooperatively Owned Builder Sees Affordable Housing, Climate Action in ‘Granny Flats’

They've worked with the city of Evanston, Illinois, on zoning changes to allow accessory dwelling units.
...
Their perfectly sized house is being constructed by the Evanston Development Cooperative, a cooperatively owned builder that specializes in ADUs. The worker co-op is also a local advocate for efficiently sized homes as a way to address the often-interlinked issues of race, climate change, and affordable housing. It was founded in 2018, the same time that the city took the first step to update its zoning code for ADUs.
...

Before EDC’s founding, the city did the work of legalizing existing ADUs, which were technically illegal because of changes made to city zoning in the 1950s to prioritize single-family housing. In 2020, thanks in part to EDC’s advocacy, two additional key changes were made: allowing the construction of ADUs on any residential property and legalizing internal ADUs, such as an attic or basement conversion. Prior to the updates, only single-family homes and not duplexes — which are disproportionately in Evanston’s neighborhoods of color — were allowed to build ADUs. Resolving that line item was an equity issue, Markus says.

“Only certain parts of the city were allowed to build intergenerational wealth and increase their property value through this mechanism,” he says, “while other parts of the city were often being denied this opportunity.”

Last year, Evanston made history as the first city to institute a reparations program. It is specifically focused on mending the harms of “discriminatory housing policies and practices and inaction on the city’s part.” But over the past 20 years, the city’s Black population has been declining; many people cite the rising cost of housing as the reason, according to Markus. Last year, the median Evanston home sale price was $450,000.

“We are in such a crisis with the cost of housing that we have to put every option on the table,” Markus says. “Accessory dwelling units will not single-handedly alleviate the housing cost pressures facing our city. But on the other hand, it does not cost a city any dollars to amend its zoning code to allow for these units.”

Building ADUs might not be a silver bullet, but they can open up housing options in the city: According to EDC calculations, building ADUs on Evanston properties has the potential to add 10,000 additional housing units.
...
https://nextcity.org/urbanist-news/coop ... n-in-grann
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Re: Affordable Housing

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Another milestone underway in the Lykins neighborhood’s battle against blight

The Lykins Neighborhood Association in Kansas City is seeking proposals to build at least 15 new homes on more than 2.5 acres of vacant lots

https://thebeacon.media/stories/2022/03 ... st-blight/
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Re: Affordable Housing

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This South KC neighborhood takes on blight and generational wealth — one house at a time

The Marlborough Community Land Trust gets legal assistance to turn properties into affordable housing.

https://thebeacon.media/stories/2022/04 ... on-blight/
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Re: Affordable Housing

Post by DaveKCMO »

These are both such great success stories. Just shows you what a properly focused neighborhood association can do with the right resources!
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FangKC
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Re: Affordable Housing

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Kansas City is seeking resident input on accessory dwelling units.

https://www.surveymonkey.com/r/ADUs
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Re: Affordable Housing

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What Does Affordable Housing Do to Nearby Property Values?
...
What she found, after an analysis using Zillow data between 2000 and 2020, and controlling for overall market trends, was that the only significant change was in the positive direction. Homes located within a typical block of the affordable housing developments saw property values increase, on average, by a small but still significant 0.9%.

“I think the point here is that it’s not a negative impact,” said Stacy. She stresses that the analysis doesn’t prove the relationship is causal, only correlated. But it adds another finding to the growing body of research on what adding housing for lower-income people does to the community around it. “There’s so much evidence about the positive impacts of affordable housing: on reducing homelessness, lifting people out of poverty, improving health outcomes, improving long-term outcomes for kids... There are so many benefits.”

The link between affordable housing construction and property values has been studied before, with mixed results. A look at federally subsidized rental housing in New York City, conducted by researchers from New York University’s Furman Center for Real Estate and Urban Policy, showed that property values were typically not depressed by nearby affordable projects. “In fact,” researchers wrote, they “led to increases in many cases.”
...
https://www.bloomberg.com/news/articles ... ium=social
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KCtoBrooklyn
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Re: Affordable Housing

Post by KCtoBrooklyn »

The KC real estate data for May is now out. If you follow national real estate news, there has been plenty of the talk that the "Great Deceleration" or "Great Slowdown" is well underway. Anecdotally, there may be some signs of the frenzy cooling down a bit, although the market still remains very heavily tilted toward sellers. Looking at the data, there is one metric that shows a cooling- the number of homes pended, which fell by 8% from April. Inventory still remains incredibly low at 0.9 months. Here is the last 5 years.

Image

Number of closed sales was up and the prices continue to rise.

Over the last two years, prices in KC are up about 33%. I believe the national average is around 30%.

Image

The numbers from the East Side continue to astonish me. Here are some of the zip codes in the core of the East Side - 64124, 64127, 64128, and 64130. Prices 740% in the last ten years (the metro-wide number for that time frame is about 108%):

Image
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Re: Affordable Housing

Post by kboish »

The average price for a house was below $20k on the east side in 2012. That is more astonishing than the price increase imo.

You can talk in percentages and easily obscure the reality that the average sold price in those neighborhoods (under $140k) is still very affordable.
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KCtoBrooklyn
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Re: Affordable Housing

Post by KCtoBrooklyn »

I'm not obscuring anything. The data is there. I'm not sure how to relevantly discuss price growth without talking percentage.

Yes, houses on the East Side are still relatively affordable, but the prices have shot up dramatically. These numbers include a large number of homes that are in uninhabitable condition. Renovated, move-in ready homes in these zips frequently go over $200k. That number is still well below the metro average and what most would consider "affordable", but it is out of the price range for most who live in the area.
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TheLastGentleman
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Re: Affordable Housing

Post by TheLastGentleman »

kboish wrote: Wed Jun 08, 2022 11:17 am You can talk in percentages and easily obscure the reality that the average sold price in those neighborhoods (under $140k) is still very affordable.
Affordable to who though?
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Re: Affordable Housing

Post by beautyfromashes »

KCtoBrooklyn wrote: Wed Jun 08, 2022 11:32 am That number is still well below the metro average and what most would consider "affordable", but it is out of the price range for most who live in the area.
I think what you’re seeing is a reverse exodus. More demand from suburbanites to move back to the core is driving up prices. The balance is returning back to level between urban and suburban. This will mean a stalling in prices of older homes in suburbs like Lee’s Summit, Belton, Grandview and Olathe, etc. What hasn’t come back yet is quality jobs. We HAVE to make efforts to bring back major businesses and make them accessible for those who live on the East Side now or they will be forced out. Prices in the core will continue to go up relative to the rest of the metro, even if there is a housing correction.
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Re: Affordable Housing

Post by daGOAT »

TheLastGentleman wrote: Wed Jun 08, 2022 11:49 am
kboish wrote: Wed Jun 08, 2022 11:17 am You can talk in percentages and easily obscure the reality that the average sold price in those neighborhoods (under $140k) is still very affordable.
Affordable to who though?
Anyone who can get their shit together... these prices are still dirt cheap. Impoverished parts of Chicago homes sell for half a mil and the people make it happen. What makes Kansas City such a giant exception and why is poverty encouraged? We have city leaders clamoring for projects that help inflate the Eastside and a bunch of dumb asses who cheer them on, while killing projects that offset the chance of a wealthier individual buying/renting in the Downtown/Midtown corridor. If anyone really cared about the Eastside the first priority should be a property tax freeze for decade(s) long home owners and a minimum wage increase. But I gotta be real even if the city managed to pull something intelligent off, as such listed previously, the school district will still fail the children which is exactly why we have a bunch of grown ups who cannot figure out how to succeed in society. We have a school district that bitches for tax dollars in the name of children they don't even teach to read or write, and yes I am being quite literal. It looks really low class and hella hypocritical.
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