Sky-high housing costs

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Citizens for Limited Taxation

Sky-high housing costs Monday, August 15, 2005

Rick Holmes Metrowest Daily News

Do you despair that you'll never own a home? Are your three children cramped in one bedroom because you can't afford more than the two-bedroom apartment you now rent? Do you struggle every month to make ends meet?
You're not alone.
The Center for Housing Policy released a study this week that confirms what Massachusetts residents have known for years: Wages in the Bay State have not kept pace with the high cost of housing, and that disparity is pushing the American dream of home ownership further and further away from the working class.
This is a problem for renters, as well. The cost of renting even a one-bedroom apartment is beyond the means of many in this state, which contributes to an exorbitantly high number of homeless families and a host of other issues.
The study offers cold, hard facts. A yearly salary of $112,581 is needed in order to own a home. An hourly salary of $24.35 is needed in order to rent a two-bedroom apartment in the Boston/MetroWest area.
A look at salaries shows the stark difference between need and reality. Elementary school teachers earn a yearly salary of $50,033; police officer, $48,419; family social worker, $42,221; licensed practical nurse, $40,330; secretary, $36,388; news reporter, $36,376; receptionist, $28,516; retail salesperson, $26,041; janitor, $25,120; and nursing aide, $24,564. All of them a far cry from the necessary $112,581.
Renting is a little more affordable for some of the above professions. The hourly wage of an elementary school teacher is $24.05; police officers, $23.28; family social workers, $20.30; licensed practical nurse, $19.39; secretary, $17.49; news reporter, $17.49; receptionist, $13.71; retail salesperson, $12.51; janitor, $12.03; and nursing aide, $11.81. None of them, however, reach the $24.35 affordable threshold for a two-bedroom apartment.
Factor in the high cost of heat during the long, harsh New England winter, those ever-increasing electric bills, the rising cost to fill the gas tank combined with an hour-long commute to the job, and the surprisingly small amount of groceries one gets for $100, and the picture is clear.
Low- and middle-income Americans have a problem, and though it's worse in New England, it's a problem nationwide where the median cost of housing rose by 20 percent in just the last 18 months while wages stayed flat.
The cost of a single-family home in Massachusetts rose 72 percent from the first quarter of 2000 to the first quarter of 2005, according to published reporters, 13 percent in the first quarter of this year. It's now $359,000.
In addition, Massachusetts is one of the slowest in the nation at creating new housing, second only to Rhode Island, and much of the new housing being created is age-restricted with developments catering to those 55 and older.
Those projects don't help families, and continued resistance to affordable housing developments -- though understandable because of the high cost of educating the children that come with family housing -- is concerning and a problem cities and towns can't solve alone.
Recognizing that property taxes do not cover the cost of education, the Legislature should reimburse communities for the increase in students that come with new housing starts. In addition, the Legislature could offer technical assistance to local zoning and planning boards so that sound decisions are made quickly. Too many good housing projects are stalled, and eventually withdrawn by frustrated builders, because local boards don't have the time or expertise to act quickly.
It's recognized that the high cost of housing is a major reason Massachusetts lags behind other states in recovery from the recession, and the main reasons our children graduate from college and move to a more affordable state. In the 2000 census, Massachusetts was the only state in the nation to record a decrease in population.
Failing to provide affordable housing pushes a skilled work force to other states, and they are soon followed by the business and industry that needs those skills.
Until that changes, the Massachusetts economy will remain stalled and the American dream a nightmare instead.

Sky-high housing costs	Monday, August 15, 2005
Rick Holmes	Metrowest Daily News
Do you despair that you'll never own a home? Are your three children cramped in one bedroom because you can't afford more than the two-bedroom apartment you now rent? Do you struggle every month to make ends meet? You're not alone. The Center for Housing Policy released a study this week that confirms what Massachusetts residents have known for years: Wages in the Bay State have not kept pace with the high cost of housing, and that disparity is pushing the American dream of home ownership further and further away from the working class. This is a problem for renters, as well. The cost of renting even a one-bedroom apartment is beyond the means of many in this state, which contributes to an exorbitantly high number of homeless families and a host of other issues. The study offers cold, hard facts. A yearly salary of $112,581 is needed in order to own a home. An hourly salary of $24.35 is needed in order to rent a two-bedroom apartment in the Boston/MetroWest area. A look at salaries shows the stark difference between need and reality. Elementary school teachers earn a yearly salary of $50,033; police officer, $48,419; family social worker, $42,221; licensed practical nurse, $40,330; secretary, $36,388; news reporter, $36,376; receptionist, $28,516; retail salesperson, $26,041; janitor, $25,120; and nursing aide, $24,564. All of them a far cry from the necessary $112,581. Renting is a little more affordable for some of the above professions. The hourly wage of an elementary school teacher is $24.05; police officers, $23.28; family social workers, $20.30; licensed practical nurse, $19.39; secretary, $17.49; news reporter, $17.49; receptionist, $13.71; retail salesperson, $12.51; janitor, $12.03; and nursing aide, $11.81. None of them, however, reach the $24.35 affordable threshold for a two-bedroom apartment. Factor in the high cost of heat during the long, harsh New England winter, those ever-increasing electric bills, the rising cost to fill the gas tank combined with an hour-long commute to the job, and the surprisingly small amount of groceries one gets for $100, and the picture is clear. Low- and middle-income Americans have a problem, and though it's worse in New England, it's a problem nationwide where the median cost of housing rose by 20 percent in just the last 18 months while wages stayed flat. The cost of a single-family home in Massachusetts rose 72 percent from the first quarter of 2000 to the first quarter of 2005, according to published reporters, 13 percent in the first quarter of this year. It's now $359,000. In addition, Massachusetts is one of the slowest in the nation at creating new housing, second only to Rhode Island, and much of the new housing being created is age-restricted with developments catering to those 55 and older. Those projects don't help families, and continued resistance to affordable housing developments -- though understandable because of the high cost of educating the children that come with family housing -- is concerning and a problem cities and towns can't solve alone. Recognizing that property taxes do not cover the cost of education, the Legislature should reimburse communities for the increase in students that come with new housing starts. In addition, the Legislature could offer technical assistance to local zoning and planning boards so that sound decisions are made quickly. Too many good housing projects are stalled, and eventually withdrawn by frustrated builders, because local boards don't have the time or expertise to act quickly. It's recognized that the high cost of housing is a major reason Massachusetts lags behind other states in recovery from the recession, and the main reasons our children graduate from college and move to a more affordable state. In the 2000 census, Massachusetts was the only state in the nation to record a decrease in population. Failing to provide affordable housing pushes a skilled work force to other states, and they are soon followed by the business and industry that needs those skills. Until that changes, the Massachusetts economy will remain stalled and the American dream a nightmare instead.

Send comments to: hjw2001@gmail.com

Keep Framingham Affordable Working to Keep YourTaxes Affordable

Every tax is a pay cut. Every tax cut is a pay raise. Citizens for Limited Taxation

Keep Framingham Affordable
Working to Keep Your
Taxes Affordable

Every tax is a pay cut.
Every tax cut is a pay raise.

Citizens for Limited Taxation