In the News - 4/12/2024
The Wall St. Journal
(Paywall - contact dsimonson@mac.com for full text)
The Hidden Costs of Homeownership Are Skyrocketing
Rising insurance premiums, property taxes and maintenance costs show little sign of abating
Darren Gondry has owned his four-bedroom home near a golf course in Louisville, Ky., since 2004. He and his wife, Lori Gondry, paid off their primary mortgage in 2021.
That hasn’t stopped other bills associated with homeownership from piling up. Their home insurance costs have risen 63% in two years. Their property taxes, utility costs and homeowners’ association fees have risen in recent years, too.
“I was so sticker-shocked,” Gondry said of the mounting home-cost increases. “I fear they’re here to stay.”
Homeownership affordability fell to its lowest level since the 1980s last year as mortgage rates reached a 23-year high and home prices set new records.
Borrowing costs have eased somewhat this year, with the average rate for a 30-year home loan down about a percentage point since October. But other prices related to homeownership keep rising and show little sign of abating.
Property taxes and home-maintenance costs are climbing in much of the country. Non-mortgage costs including property taxes, maintenance, utilities and insurance make up more than half of homeowners’ overall costs, according to a 2022 analysis by Fannie Mae economists.
FastCompany
Housing market affordability is so strained that Home Depot is selling tiny homes for $63,000
Home Depot is following in the footsteps of Sears, which sold over 70,000 mail-order homes between 1908 and 1942.
In response to the escalating strain on housing affordability, Home Depot, a leading home improvement retailer ranked No. 20 on the Fortune 500 list, has continued to launch a range of tiny homes and Accessory Dwelling Units (ADUs) on its website.
Among the offerings is a 444-square-foot, two-bedroom rose cottage priced at $63,000.
Dubbed as a “DIY Assembly Office Guest House ADU Rental Tiny Home,” the package includes necessary components delivered in parts, comprising the steel frame, siding, roof materials, exterior doors, and windows. Delivery is slated as soon as May 13.
However, it’s crucial to note that purchasing a home kit from Home Depot does not guarantee legal installation rights. Some local municipalities, like Seattle, are pushing for more ADUs to alleviate housing constraints, while others maintain stringent restrictions.
The Center Square
Bellingham purchases $1.2M in land for future tiny home village for homeless
The City of Bellingham approved the purchase of property in the Birchwood neighborhood that will serve as a site for a future tiny home village for homeless people.
The city purchased the property for $1.2 million with funds stemming from a combination of local housing funds. The property is intended to be used as the new location for a tiny home village to replace two existing villages, as current Bellingham city code does not allow tiny home villages to be located in one place permanently.
The city code currently only allows permitted tiny home villages to operate in the same location for two years, followed by up to three one-year extensions. The future village will be subject to this code as well.
Bellingham’s two current tiny home villages, Swift Haven and Unity Village, are facing deadlines in December 2024 and March 2025.
According to the city, construction of the tiny home village and initial set up is estimated to cost $900,000. Costs include the installation of utilities and amenities such as electrical, plumbing, kitchens, laundry and storage, plus replacement of houses and common areas that can’t be reused from previous villages.
City officials stated on a webpage that they are hopeful that the future village can accommodate between 40 and 50 tiny homes and as many residents.
The Bellingham-based nonprofit organization, HomesNOW!, will operate the new shelter when it is expected to be ready for tenants in the upcoming fall.