Driving Up Home Prices
What’s Going On With The Shortage of “Affordable Homes” in Pierce County? I would call this a spillover effect. Home prices in the greater Seattle/Bellevue area have risen so dramatically these last few years, there isn’t much left to be deemed affordable in those markets. After spending time in traffic congestion most have us have placed a high priority on trying to locate ourselves close to our employment. With the Interstate Five corridor being a huge hub for employment, this has drastically affected home values for those trying to avoid a congested commute.
How Seattle Business Affects Pierce County
This has now spilled over into Pierce County. With such a shortage of affordable homes in King County, has forced us to consider a longer commute to afford a home in today’s market. This means spending more time stuck in traffic and pushing us farther away from our employment, which impacts home values up and down the Interstate Five corridor. This obviously affects Pierce County home values.
What Government can do to Increase Affordable Housing
Real Estate values go up and down based upon demand. We need a larger supply of all price points to slow down appreciation and keep home prices in check. One way to increase supply would be a fast track system of permitting new builds and remodeling permits. The regulatory system is slow and expensive. This is adding to the overall cost of home ownership. Also, an improved freeway system would ease home values by making it easier to live further away from your employment, while enjoying a fast commute. This would also probably ease prices in the city core, as more of us would consider a more rural lifestyle.
Wish we had a magical answer to more affordable homes! The good news is, we are all enjoying a strong economy and the daily treasures of living in the Pacific Northwest.
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View my previous article on choosing paint colors for your home.