Low-Income Buyers Struggle To Afford Habitat Homes In The Bay Area
As construction costs continue to increase and public funding takes a big hit, it is becoming difficult for Habitat for Humanity to build affordable houses for low-income buyers, according to a recent report.
"That scenario is playing itself out right now in Fremont, Calif., where Habitat for Humanity is selling 19 of 30 planned condos to families whose income is 40% to 115% higher than that of the buyers originally targeted," according to National Mortgage News.
"Janice Jensen, president and CEO of Habitat for Humanity East Bay/Silicon Valley, said costs for everything from raw materials such as wood and drywall, to labor and real estate have soared over the past five years."
The report also revealed that material cost alone increased 5% from December 2016 to December 2017. This also happens to be the fastest rate of increase in six years according to information released by the Associated Builders and Contractors, Inc.
"When first envisioned, half of the condos in Habitat's Central Commons project were supposed to be sold to very low-income families and half to low-income families," according too NMN.
"But Habitat had to raise the price of the homes twice in the past couple of years to cover the additional $3.54 million the project was costing, effectively excluding very low-income families from a shot at the homes."
To learn more about the Habitat for Humanity struggles to build affordable homes in the Bay Area, click on the image above.