Re: “A record number of Americans can’t afford their rent”
We recall building in WV in the 1980s at a time when they had a massive influx of public housing. We were turning out ‘luxury’ apartments for less cost than the far inferior subsidized projects!
Because it creates a ‘feeding trough’, it costs government at least half again as much to generate a housing unit than the market place.
And things have gotten much worse over the decades.
So much of the cost today is due to restrictive zoning and subdivision regulations, the very expensive and some say tortuous approval processes, governmental impact charges per unit (ostensibly to offset prior community investments in roads and utilities), and building codes (which add to safety.) What used to be perhaps 5% of the cost of a unit now is between 20% and 25%.
Meanwhile commodity prices have soared due to third world demand, pushing up the cost of materials for construction.
In order to obtain a Preliminary Subdivision Approval for one hundred exurbia townhouses, we recently spent about $5,000 a unit just on engineering costs. And that is before ground breaking! That was ten times more than it should have cost.
All of the above gets built into the price of the unit.
We suspect that the only solution to the problem will be a ‘trickle down’ effect; if enough housing for the more affluent is built, owners of older apartment complexes will agree to accept government subsidies and accept low income tenants.
As far as downtown Lancaster is concerned, the foolish placement of the Convention Center opposite the Lancaster Newspaper’s facilities created a ‘dead’ zero block of South Queen Street, discouraging ‘gentrification’ to the south.
Had a mixed unit residential condominium been built instead of the Convention Center, as planners had recommended and Penn Square Partners had originally proposed, private money would be investing in new housing in the 100 block of South Queen Street instead of the need for massive governmental funding.
The Gray administration is about to make a similar mistake with Lancaster Square East. When it comes to sound planning and redevelopment efforts, they are clueless and deaf.
