An interesting solution in the quest for affordable housing
During the great housing boom of 2001 through 2006, housing prices rose too high too quickly. It was getting to the point where too many people couldn’t afford to purchase homes in desirable neighborhoods.
Housing prices, as anyone trying to sell a home today knows, have since dropped dramatically. But not quite enough for many potential buyers. In fact, there’s still a shortage of quality affordable housing across the country.
It’s led housing advocates and government officials to get creative.
For instance, the Chicago Tribune reports that a former hotel in Springfield, Ill. — that state’s capital city — will soon be transformed into affordable housing.
The social service agency Fifth Street Renaissance says that the All Star Inn in Springfield will be turned into 19 units for single, low-income adults. The reason is simple: Springfield, like many cities, has more than enough hotels. It doesn’t have enough affordable housing.
There is some evidence, though it’s too early to say whether it represents a trend, that housing prices may soon begin to rise gradually once again. In March, the national median existing-home price came in at $175,200, according to the National Association of Realtors. That’s an increase of 4.2 percent from February, higher than the traditional 1.8 percent increase that usually happens between those months.
But the median price was still down significantly from one year ago, 12.4 percent, to be exact.
If housing prices do begin to a steady rise, that’s good news for sellers. But it might not be so good for buyers still looking for somewhere affordable to call home.
