Affordable Housing Month 2021

The month of May is Affordable Housing Month. Unfortunately this month is somewhat of a double-edged sword for rural communities. For quite a while it has been a marketing point for most rural communities. But affordability of housing is quickly becoming an issue for even smaller rural communities.

Loosing its Marketability

One of the bigger draws of rural life has always been the low cost of living. A key contributor to this low cost of living has been the low cost of housing. Low demand, combined with an older housing stock, has provided many opportunities for low lease rates or low purchase prices. Economic development representatives in rural areas have pointed to this significant difference in housing cost for decades in hopes of spurring economic development.

Unfortunately, for a number of communities housing affordability is quickly becoming a problem, rather than a marketing point.

An already old housing stock in many communities continues to grow older and the deterioration curve for many structures are reaching the point of dilapidation. The housing may still be “affordable” but the condition of the available affordable housing units have sunken to all-time lows.

Rural Areas not Protected from Rising Costs

Maintenance and repair of housing has become a factor as well. Throughout the nation, the housing market has been reeling from the impacts of the rising costs of labor and materials. According to a recent Forbes article, the price of lumber has risen 193% in the past year, with potential to go even higher. Though lumber accounts for only 5-10% of the cost of a new house, it is indicative of the overall rising costs in construction.

This also impacts rural areas. For many rural areas, there’s no Menards, Lowes, or Home Depot providing materials at a viable low price due to their high-volume purchasing. Local lumberyards are suffering even more from the skyrocketing material prices due to their lack of buying power and distance from supply.

Based on current lumber prices, my view of the wealthy class has changed: pic.twitter.com/qhJ3pyRhH0

— Dr. Troy (@AdhocAloof) April 17, 2021

This also affects the new housing market as well. Adding to the housing stock or replacing unit that have become dilapidated beyond the point of repair has become unaffordable. Affordable new unit construction is no longer possible without massive subsidizing.

Housing affordability is always been an issue, but it will only get worse without significant attention and proactive actions. Use Housing Affordability Month to draw attention to the issue and start the conversation.