listen to this articleIndustry stakeholders and political leaders need to maintain economic stability in the Rochester metropolitan area as inventory remains scarce and unaffordable for a significant proportion of prospective home buyers. must embrace new ideas.
That's a belief Jim Yoeckel, CEO of the Greater Rochester Association of Realtors, shared during the Housing Initiative's fireside chat Wednesday morning. Jim Barbato, President and Founder of Pride Mark Homes. Matt Hurlbut, President and CEO of Greater Rochester Enterprises. Bob Duffy, president and CEO of the Greater Rochester Chamber of Commerce;
“We need to think differently. We need to think, 'What do we need to do to grow the whole region?'” said Yoeckel at the DoubleTree by Hilton Hotel in Henrietta. spoke during a panel discussion.
According to GRAR statistics, housing prices have skyrocketed and are continuing to soar.
It took 13 years for the median sales price in the Rochester area to rise from $100,000 to $150,000, Yockle said. It took just three years to go from $150,000 to $200,000. And it took only one year for that number to rise to the $250,000 he is today.
“This is a real problem,” Yoeckel said. “There is no supply, and even when we get listings, they quickly go unsold (through sales). That is having a negative impact on the economic growth and future prospects of our region.
“I worry that housing needs are not being met and that the next few generations will not be able to own a home.”
Rising material costs, combined with builders' infrastructure requirements, mean the typical single-family home costs nearly $400,000.
“You can't do new construction in the $100,000 to $199,000 range,” Yoeckel said.
But home builders can lower prices if they don't have to pay all the costs of new roads, water and sanitation upgrades and power system expansions associated with new housing developments. Those costs are passed on to consumers.
The group said zoning requirements also need to be reviewed and changed. Barbato said he hopes the local community will be able to alleviate density concerns and be able to build 80 homes, up from the current maximum of 20.
“If no one wants to buy a $600,000 home on a one-acre lot, why do we still need to ask for it?” Mr. Yoeckel said.
Hurlbut said: You need to find a solution to make things easier. ”
Another important factor is support from the Albany or federal government. There are several ways real estate developers can leverage public funds when constructing apartment buildings. These options are not available to builders of single-family homes.
“There is state funding for affordable rental housing, but there is no funding for affordable ownership housing,” Barbato said.
Creating a supply of reasonably priced housing is important not only for the real estate market but also for the economy as a whole.
“If we can't help the people who live here now, we can't focus on Micron executives who can afford $700,000 homes,” Yoeckel said. We need to start thinking about ways to make housing affordable for people with below-median incomes. ”
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