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| People who work in Goochland want to live here |
We want to
attract, and keep, the best deputies, firefighters, and teachers for our
community but seem to have trouble filling vacancies. Candidates for these jobs
like to live among the people they serve but lament that they cannot afford
homes in Goochland.
Developers
seeking to build high density residential communities in parts of the county
served by water and sewer contend that they will provide “affordable” residences
with “price points” in the $400k range.
What is
the sweet spot for home prices for those who serve our community? Some people
equate the notion of “affordable” housing with low income housing, which opens up
a whole ‘nother can of worms.
The advent
of apartment communities in West Creek—one roughly opposite the Wawa, the other
off of West Creek Parkway—do provide more options but are not inexpensive and
may not be ideal for young families.
During the
Tuesday, February 19 Board of Supervisor’s’ budget workshop, Kelly Parrish,
county director of human resources, said that the average salary of county
employees for 2018 was $54,911. As averages are computed by dividing the total of
all salaries for all employees—including the county administrator and county
attorney— by the number of employees, the usefulness of this statistic is
limited.
For
illustration though, let’s use $54k. Monacan Soil and Water District
Commissioner Jonathan Lyle, who worked in the mortgage industry in another
life, shared some seat of the pants calculations and thoughts on the subject.
For illustration
purposes, Lyle used the $400,000 “price point” for homes proposed for the Reed
Marsh property opposite the county administration building in Courthouse Village.
(Public hearings on this rezoning application and one between Manakin and
Rockville Roads will take place on Tuesday, March 5 at the 7 p.m. portion of
the Board of Supervisors’ meeting.)
Lyle said:
“When I was at Southern
Bank (last century...in the 1970's/80's) we used a loan-to-income ratio of
about 25% - 30% for housing (rent/mortgage) as affordable/prudent.
With the Reed Marsh
rezoning request, I took their $400,000 number, and used a mortgage calculator
for a 30-year fixed at a VERY favorable 3.92% mortgage rate. For
simplicity I used the entire $400,000 as the mortgage amount.
A 30-year fixed rate
$400,000 mortgage at 3.92% results in a $1,891 monthly payment
($22,692/year). If that $1,891 is 30% of the household income, that buyer
will need to have a $76,000 household income.
So. If a Goochland
"average" employee is in a two-income household, and the second
income is say 70% of the $54,000 average (~$37,800) that gives them a household
income of $91,800. That would make the mortgage payment about 24% of the household
income. Is that affordable?
If the home is $300,000,
at the same 3.92% mortgage rate, the payment on a 30-year fixed rate loan is
$1,418 (~$17,000/year.) With the same $91,800 income, that mortgage
payment is 18% of the household income.”
Lyle also considered apartment rates in Goochland. According to
their websites, monthly rent for two-bedroom apartments in The Retreat (opposite
Wawa) start at $1,643. Rents at 2000 West Creek, near Capital One and the
Hardywood Park Brewery start at $1,650 for a slightly smaller unit.
As Lyle pointed out, his mortgage figures assume no down payment, which
would reduce the monthly payment. These numbers are just for housing, they do
not take into account other financial obligations including car payments and student
loan debt.
This is an open question to all of our wonderful deputies, teachers,
fire-rescue providers and county employees, what do you consider “affordable” housing
for your situation? It’s time to get some input from the people who make
Goochland the special place it is.
Developers want to build houses and make money, there is nothing
wrong with that. Maybe it’s time to look at denser options in appropriate
places. For instance, would townhomes clustered on the less swampy portion of
the Reed Marsh property, which would require shorter roads and utility lines,
reducing construction costs, result in a “price point” closer to $300,000? Would
that be attractive to Goochland’ workforce? Is that feasible?
Maybe it is not economically possible for builders to bring an “affordable”
product to market and make a profit, so that they are able to stay in business
and build more homes.
Please chime in with your thoughts. All civil, constructive
comments will be published. Thanks to Mr. Lyle for his thoughts on this matter.
4 comments:
Perhaps when we talk about the salaries of County employees in terms of "affordability," rather than dealing with average (i.e., arithmetical mean), which is generally upwardly skewed, we should exclude the top 5-10% salaries and think in terms of the salary range of the other 90-95%. This would give a better picture of what might be affordable to a teacher, deputy, fire fighter, or clerical or maintenance worker, i.e., the people who actually do the work of keeping the County running.
As a young adult, I have seen Goochland and it's large amount of growth in the past decade. As a Goochland native, it is very concerning in the fact that I hold both the agricultural and historical roots in high regard for the county's future. I understand the need for growth and housing, especially when we are trying to support the influx of people moving in from the Short Pump/Richmond area and that it is very difficult deciding where to draw the line on growth to maximize benefits without negatively impacting our county. I see the need for affordable housing for our teachers and other Goochland county employees, as well as a group that I don't think is really considered in this decision very much - young adults starting out on their own that want to stay in Goochland. The limited options make it an easier choice to move somewhere with more affordable housing or continue living with family if they have that option. I think that in controlled amounts of growth that affordable apartment complexes sparsely throughout goochland may help meet these affordable housing needs for everybody. With so many factors to consider in this topic, I think affordable apartments would be a viable option as either a stepping stone towards being able to move into a house in Goochland or as an alternative if that happens to be what the individual may want. I'm glad to see that this discussion on growth is gaining momentum and expanding to look at all possible options and outcomes.
Well.....just thinking,in 1969, I lived at home during college, sometimes took the bus from my parent's apartment. Upon finishing the program, I moved to Richmond, made the incredible salary of $40 a day (considered quite high), no benefits,2 days vacation, moved in with friends until I found a room mate of my gender,leased an apartment for $95 per month, bought an old used car, borrowed a knife & fork,got an electric cable spool for a table, moved into the apartment with my cat and started saving any salary I didn't need for insurance, food & utilities and considered myself "well off". Ten yrs. and 3 apartments & 2 used cars later, I bought a row house with radiators built in 1929 which I couldn't afford to heat,requiring me to pick up kerosene for a space heater most nights. But I was a happy homeowner! 10 yrs. later, I landed a job with benefits!
Yay for me!! I was lucky. But maybe not too particular.Maybe I had low expectations.
But requirements for happiness were not determined on today's scale. It sounds like
I had to struggle. But it didn't feel like it at the time. It was pretty great. I retracked my education and career by attending VCU at night on a personal loan which I paid off in 3 yrs. Married and moved to Manakin-Sabot.and have lived here ever since. haha I'm still driving used cars. But we have heat pumps keeping us warm.
I didn't expect a new house or new apartment starting out. They're are older houses in Goochland, some brick ranchers, among other styles not as expensive. No, I would not want to live without my dishwasher or washer and dryer, or TV, or newer car but I didn't start out that way. The quality of my clothes, shoes, and mattresses have improved over time. I agree with the person's comment that maybe the expectation change of what we get when is part of the difficulty.
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