A typical house on Oahu costs about $600,000. A typical condo goes for almost $400,000. After enduring a few decades of rising property costs, people are clamoring for affordable housing.
At prices like that, who can blame people for clamoring. It’s what they do when things don’t go as they want.
What can the state do to provide affordable housing? Change the definition of what is ‘affordable.’
If you can’t afford what’s considered affordable by the state’s definition, then the deficiency is your own fault. Earn more. Somehow or another, affordable means about $450,000 to $550,000. Think about how much money a family must earn to afford a monthly mortgage, even with 10-percent down payment.
But, hey. It’s affordable.
There’s a condominium conversion down the street with prices in the $300,000 range. The building is closer to what used to be called ‘the projects’ or ‘low income housing.’ It’s a very old apartment building that was converted to become a condominium.
For many buyers, it’s also affordable. So, why isn’t it selling like hotcakes? Even those who can afford $300,000 aren’t buying because the building still looks like ‘the projects’ or ‘low income housing’, therefore, appreciation isn’t likely to occur.
But it’s affordable.
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