Middle Class Housing - Does it Exist in DC?
Martha and I have been talking a lot recently about the possibility of getting a house/condo/townhouse, which I'm sure comes as no suprise, since we are getting married in just over a month. The issue is the fact that there is a serious lack of affordable (by our standards) housing in the Washington, DC area.
The problem is the fact that a 600 square foot condo costs upwards of $300,000 - even in less desireable areas, or areas outside of the District proper. Why? I guess because there must be demand for it. We have been hearing a lot lately on the news that the mortgage industry is having difficulty, and that many people are defaulting on mortgages. I can only attribute that to a bloated housing market. Unfortunately, I don't forsee this decline in home values making any dent in the DC-area housing market any time soon.
It's unfortunate, but it seems like the DC area housing market is set now that you have few options. Either you are extremely rich so you can afford one of the million dollar homes (that are smaller than my parent's house in Michigan), or you are 'poor' so that you qualify for HUD assistance. Those of us who are in the middle seem to have little or no option when it comes to purchasing a house in that area. A $300,000 1-bedroom condo for a pair of 27 year-old newlyweds is insane. It's nothing more that a glorified apartment, but I still can't afford it. Of course, renting in this area isn't much better.
What it really comes down to is the fact that both of us have something like $750 a month in education loans. That's at least $1500 a month that we could be using for a mortgage. Of course, that $1500 is also taken into account when we apply for mortgages, thereby reducing the amount we can finance. Yes, it was our choice to go to law school and take out loans, and we have to deal with that. However, there has to be a solution to help people like us be able to afford a house! It is just very frustrating that there seems to be little we can do to afford even a small condo.
Maybe the HUD assistance levels need to be changed to better reflect where you live and that locale's cost of living. Surely the cost of living in the Metro-DC area would be sufficiently increased so as to include us. Or maybe educational loans should not apply towards the determining of financial worthiness when appying for a loan (fat chance, I know). Or maybe I should form a lobbyist group for the middle class. Or first goal: some type of middle-class housing assistance program for high cost-of-living areas.
Comments
I'd be up to help you with that middle class lobbyist group. I'm getting robbed blind on my apartment. And the difference between a nice place and a shithole is only about $100 per month. It's a crime.
Posted by: Dave Johnson | March 27, 2007 11:54 AM
Jeremy:
You're right on the money. It seems HUD does need to be locally-coordinated. We saw the housing price differences firsthand here in Indiana, v. Michigan. What would have been that $250-300k house there in SE Michigan, is at least $100k less here on the southside of Indy. Amazing. We've got a Rochester/Troy-like "little mansion" (2,014 sq.ft.) for an end cost of $150. Never thought that would be possible at age 27. Of course, this bloated new housing market kills the existing homes, and also gets us to rank right up there for most foreclosures in the nation. People can't afford these, but they think they can, and then lose it all. Sad state.
Also, I feel for you on the law school loans, but that's another topic entirely.....
Posted by: Hoskins | March 28, 2007 11:35 PM