How does a community tackle market rate housing? WCNDD asks --- who is going to take the risk? A community asks---where do we start? We are aware of no federal or state funding sources available for market rate housing. You as a community will need a private investor or a housing group who can purchase a lot, build the project, and sell it for a profit-- to leap frog your profits for build #2.
There are numerous questions that you will need to answer prior to undertaking market rate housing.How many homes are currently on the market and how long have they been on the market? In other words, supply and demand makes a big difference in whether you will get that new build sold. What is the income of your community; how many families can afford a market rate home and at what cost?
We have researched the market and find that in order for a family of two(2) to purchase a home at at cost of $120,000 they must be bringing in a minimum combined FTE income of $20 per hour. The $120,000 home will be a 1,200 square ft. structure with possibly a basement that is unfinished with no upgrades. That means it is not a custom built home, but a bare bones build. If you are thinking about market rate apartments; you need to consider if a renter can afford to pay $1,200 to $1,400 a month for rent? Do the jobs in your community support the income that is needed to pay for market rate housing?