I’m changing my mind ‘again’ on trickle down housing.
Augustana did a presentation today to the SF City Council about housing needs in Sioux Falls.
One point the presenter made was that middle income people are actually spending less than the 30% for housing because they are renting more affordable middle income housing which is actually taking affordable rents away from lower income folks.
In other words, just because middle income folks CAN afford a more expensive rental unit, they are still choosing to save money and the lower income housing ISN’T trickling down. I can tell you when I was in my 20’s I didn’t care if I lived in a garbage can. I worked 60 hours a week and all I did at my studio apartment was sh!t, shower and shave (and a little sleep). Not everyone needs a luxurious apartment to get by. There are only a few things in life you have a little control over when it comes to expenses. You can cut back on going out to eat and drink, you can make more affordable food choices, you can limit your gas usage by walking, car pooling, riding bus or biking! You can also rent a lesser apartment to save money, and if I was in my 20’s now, I would probably be living in a mop closet.
I have often wondered why a developer hasn’t found a way to build affordable studio units in Sioux Falls? I would think with Federal Grants, ARPA state money and any possible local tax rebates you could make it work. If I had $26 million I would buy the Bunker Ramp and build a studio apartment building on top of it.
We have a housing crisis mounting, we haven’t seen it yet, but once interest rates drop by the end of 2024 (I think it will be around 3-4%) you will see as people climb out of the Covid hole they are going to start trying to buy 1st time homes (used or tract homes) and better rental units. What they are going to find is that their isn’t anything available, even if you are stinking rich.
