Housing costs kill dreams for many

Industry leaders offer ideas for affordability solutions

Is affordable housing in South Florida a misnomer?

Slow wage growth combined with steep increases in rents and home prices in the past five years have made housing costs here among the least affordable in the country.

A recent study from Harvard University showed that South Florida has the nation’s highest share of “severely burdened” renters — people who spend over half of their incomes on housing. To compensate, they deny themselves medical care and other necessities, leaving little or no money for down payments on homes.

Since 2012, the median price for existing, singlehomes in Broward and Palm Beach counties has soared by more than 60 percent to $335,000, and the vast majority of new homes being built are too expensive for middle-income residents.

“The American Dream is slipping away from us,” saidAnthonyTrella, a homebuilding consultant in Deerfield Beach.

The South Florida Sun Sentinel asked Trella and two other industry leaders — an affordable housing developer and the CEO of a nonprofit housing advocacy group — to address the problem and offer potential solutions.

JaimieRoss

President andCEO FloridaHousing Coalition Tallahassee Ross said affordable housing is a serious issue for professionals — namely college graduates whoareworking in jobs that bringthempersonal satisfaction. But their teacher and mid-level executive salaries or law enforcement wages aren’t enough for them to buy homes.

To keep these people from leaving the area, local governments must step up, Ross said.

Oneof theways is throughso-called inclusionary zoning – where towns and cities give builders the leeway to develop higher-density projects so they can set aside a certain number of units to be purchased or rented by lower-paid professionals.

In 2006, Palm Beach County became one of the first governments in the state to start using inclusionary zoning. Hundreds of apartments have been built under the program, but not a single home has, according to an April presentation by county officials.

Inclusionary zoning should be used consistently by municipalities across the region, Ross said.

Ross also said governments should start requiring commercial builders to pay impact fees that will go toward affordable housing. And she said more people need to take advantage of community land trust programs.

These nonprofit organizations buy homes and maintain ownership of the land, allowing buyers to sign 99-year ground leases to live in the properties.

The buyers get mortgages, build equity and receive tax breaks and other benefits of traditional home ownership. But they’re limited in howmuch they can resell the homes for because the properties aremeantto stay affordable for the next buyers.

Ross said elected officials need to push for changes and stand firm in the face of inevitable opposition from builders.

“Political will— that’swhat it takes,” Ross said.