09/20/2020
Sharing from a local real estate broker regarding real estate housing affordability & availability in Anderson, City of Easley, and Greenville County.
Sound the alarm bells, Anderson County, the City of Easley, and Greenville County are proposing big government solutions that will dramatically impact housing affordability and availability.
Let's backup a minute for context. There's a belief that development is rampant and our areas are growing rapidly. What is the truth? If you go back to the Great Recession of 2008, we didn't develop or build homes at rate to meet demand. That deficit has been ongoing for the last decade. Last year, was the first year we built homes at levels consistent with our historical norm. When you factor in the millennial generation reaching the age of being homebuyers, development costs, regulations, and inflation it has created a deficit of inventory we haven't seen in decades. If we doubled our current capacity, it would take 10 years for supply to catch-up to demand.
What are the consequences? Talk to any Realtor or recent home buyer/seller about the market. Just this week I had a client submit an offer on a home that had numerous offers. Yesterday, I placed their home on the market and within hours had multiple offers. I'm working with a teacher who wants to live in the community where she works. She recently looked at a home for $185,000 that wasn't a great house and needed work. That home had 13 offers within hours. This of course creates affordability issues. In our community, the average home price is well beyond reach of the average buyer.
The city of Easley is proposing an impact fee. They are sold as a fee to force developers to fund infrastructure costs. In reality, that fee is a tax. The funds goes to the government. Who ultimately pays for that fee? The consumer.
Anderson County has a proposal on the books to raise the minimum lot size from 8,000 sqft to 15,000 square feet. What are the consequences? If you own developable land, you'll lose 30% to 45% of your value instantly. More importantly, if a developer has to use bigger lots, then the cost of those homes being built will necessarily increase. Bigger lots also means bigger subdivisions and more sprawl. That sprawl will force the police and fire departments to cover more area.
It's fascinating to me to watch small government conservatives propose big government solutions. Are we really ok with a $3,000 to $5,000 tax being placed on the backs of new construction? Is it equitable for a small group of people to fund infrastructure that will benefit the entire community? Once the government realizes it can derive revenue this way, the race is on. In regards to lot sizes, what happened to free market principles? If consumers stop buying smaller lots, they won't get built.
What can you do? Reach out to your elected leaders and let them know you disagree. I know you're busy, but this matters. If you want your kids and grandkids to live in the community they grew up in, this can't happen.
Some will say I'm just looking out for my own interest. I actually make more money if houses cost more. I care more about the people I serve being able to achieve the dream of home ownership.
Feel free to share. Realtors feel free to copy, paste or edit to include your own stories. I don't care who gets credit for this post.
Update: Easley Planning Commission will be having a public hearing on the proposed impact fee Monday 5:30 at the law enforcement enter.
Pam Gillespie Shevlin
