At a recent Westchester County Association event in White Plains, N.Y, a distinguished panel discussed the growing crisis of the lack of affordable housing for young people. Panel member Susan Haber, planning commissioner in White Plains, pointed out that the word “affordable” suggests Section 8 housing with rent subsidies. “Work force housing” might describe the need more precisely. Fairfield County, too, lacks affordable housing for workers.
There are far more serious problems with housing than figuring out who should get subsidies. Mounting federal debt driving down the dollar, tepid national economic growth and oil approaching $100 a barrel strongly suggest the nation is approaching the end of a major expansionist era. The expectations of the public, however, including young professionals, have so far failed to make the adjustment to a swiftly changing world.
In spite of clear trouble signs, developers, too, have not altered their preoccupation with building ever more “luxury” housing while the clear need for work force housing ”“ the backbone of a successful regional economy ”“ is ignored. Another panelist, Bruce Berg, senior vice president of Cappelli Enterprises, put some responsibility on suburban resistance to further development on open land, forcing his company to redevelop urban centers such as White Plains where utilities are already in place and there is little, if any, resistance.
This is definitely where development should occur but there are two problems ”“ the aforementioned fascination with “luxury” and the fact that young couples and families, who probably grew up in a suburban setting, want to re-create that environment for the next generation, instead of settling in a high-rise. More about this dream later.
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Keep dreaming
The subprime mortgage fiasco should have been a wake-up call as to just how costly a home can be. Some investors were enticed by the rapidly rising housing prices as an opportunity to flip the purchase in the near future. In fact, homes bought on speculation have contributed to the irrational pricing of many residential properties.
Far from a hedge against inflation, the unstable pricing of a single-family house today is calling into question the traditional notion of the family home as the piggy bank for the future, particularly the way in which enhanced home equity has been used in recent times ”“ a cookie jar to dig into regularly. Apartment living is beginning to compare favorably to the huge expense of buying a single-family house. Down the road this equation could well change again but for now a sharp pencil is needed to figure the best housing move.
Historically, homeownership has not been the expectation of 20-somethings. With the savings rate at almost a minus level it should hardly be a surprise that young people have not saved enough for a down payment. Putting aside money for long-term purchases has not been part of the American culture for some time. But there is a big question as to why young people would want to be saddled with a house at this stage of their lives. The job market, while not on a slide as yet, is highly volatile. Mergers, a job change for a mate, subprime fallout and a host of other unsettling possibilities would suggest that young people should be unencumbered by a home that today is a bit more difficult to unload if relocation is required.
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Still the dream of having a single-family house in the suburbs on a cul-de-sac where children are supposedly safe is difficult to kill. The price of that barrel of oil mentioned earlier should help that process. Unless the home is within walking or biking distance of a train and a retail center, buying it in the suburbs may not be a good investment.
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Train of thinking
Today, painful as it may seem, we must contemplate life in the future with only minimal use of a personal vehicle. That can”™t be done? Think again. California, where everyone spends his or her day in the car, is demonstrating real leadership in weaning citizens out of the car. The state has been investing $100 million for a year on passenger rail and is now achieving double-digit ridership growth. Last year, in a cross-country Amtrak trip I had the occasion to take one of its San Joaquin Valley lines, a very modern commuter train, heavily used well past the peak hour. On the same trip I rode three different subway trains in Los Angeles County, also well-used. Our image of California has not kept up with reality.
Any housing discussion must include the need to connect our cities with high-speed rail. Westchester”™s housing shortfall is exacerbated by the lack of alternatives to the car to reach one”™s place of employment. People who live in the county and commute to New York City to work have such a top-notch way to get there. Metro-North. Westchester”™s inflow commuters have no such options. Time to pay attention to the state study on congestion on I-287, now in its sixth year.
The commuter rail option deserves more attention. With oil nearing $100 a barrel, gas, up to now fairly stable, will shortly show its ability to soar. When it does you want to live and work near a train.
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Surviving the Future explores a wide range of subjects to assist businesses in adapting to a new energy age. Maureen Morgan, a transit advocate, is on the board of Federated Conservationists of Westchester. Reach her at mmmorgan10@optonline.net.
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