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  1. #1

    Default How do you define affordable housing in Detroit?

    The Develop Detroit non-profit housing efforts were discussed on last Sunday’s TV program that featured Mayor Duggan and Jamie Dimon. It is rewarding to know that investments are being made to develop housing in the North End near the intersection of Marston and Woodward. Apparently, 21 homes – some new but many rehabbed - are going on the market for prices between $190,000 and about $275,000. Is it appropriate to call this affordable? If you assume that a household can afford a home priced at 2.5 times their annual income, households will need annual incomes of about $76,000 to purchase one of these homes. In the city of Detroit in 2018, the median household income was $31,000; the mean household income was $ 43,600 and only 15% of the city’s households reported incomes over $75,000.


    In Detroit in 2018, there were 52,000 households swho reported cash incomes below $10,000 and another 21,000 with incomes between . $10,000 and $20,000. If they spend 30 percent of their income for shelter, they can pay $500 per month for rent. I suspect there is not many safe, reasonably maintained units available at that price. Nationwide, there is a great shortage of affordable, safe housing. The Secretary of HUD is a distinguished Detroit gentleman who is familiar with the challenges low income people confront finding quality housing. He grew up in a small but attractive home on Deacon Street. I wonder what solutions he will propose for the current housing crisis that low income – and many middle income - households face?

  2. #2

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    Great numbers and questions Renf. To put another spin on this, consider the McDonald's and other fast food workers that re demonstrating for $15 an hour. That's pennies over $30K a year which, by your numbers, $30K X 2.5 = $75K would be their purchase affordability and $30K X 30%= $900 their max rent affordability. The former would simply put them out of the market other than fixer-ups and the latter would put them at the bottom of choices in the renter market.

    And some are outraged by those protests or efforts to set a $15/hr. minimum wage.

  3. #3

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    You should be able to pay your ENTIRE housing expense (mortgage/rent and utilities) on less than half of your NET monthly income.

  4. #4

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    Quote Originally Posted by Lowell View Post
    Great numbers and questions Renf. To put another spin on this, consider the McDonald's and other fast food workers that re demonstrating for $15 an hour. That's pennies over $30K a year which, by your numbers, $30K X 2.5 = $75K would be their purchase affordability and $30K X 30%= $900 their max rent affordability. The former would simply put them out of the market other than fixer-ups and the latter would put them at the bottom of choices in the renter market.

    And some are outraged by those protests or efforts to set a $15/hr. minimum wage.
    If you are working at a job in which you are making minimum wage, then you should not be attempting to buy a house. Homeownership is not for you at this time.

    If you own a home, you should be making middle class wages. Or else, just rent an apartment, townhouse, or house. If the furnace dies, or if the roof starts leaking badly, can you replace those on $15.00/hour wages?

    Also, $900 is not the bottom rung. $900 should get you a nice 1- or may be 2-bedroom apartment in Livonia or Allen Park or Clawson or Madison Heights, or a nice 3 bedroom bungalow in the city.

    https://www.apartments.com/clawson-mi/

  5. #5

    Default

    Quote Originally Posted by masterblaster View Post
    If you are working at a job in which you are making minimum wage, then you should not be attempting to buy a house. Homeownership is not for you at this time.
    So, the poor have less rights than the rich?

  6. #6

    Default

    Quote Originally Posted by renf View Post
    In the city of Detroit in 2018, the median household income was $31,000;
    $15.00 x 2,080 (Full time) = $31,200

    For that to be a median, how many households are pulling in less than that? How many are pulling in under $20K? How many are only able to get part time?


    And remember, that's Gross. Take out 25-30% for normal taxes and deductions and you get a net take home pay in the $21K range. That doesn't even begin to account for food and transportation.

  7. #7

    Default

    Quote Originally Posted by Meddle View Post
    So, the poor have less rights than the rich?
    Are you suggesting it’s a right to OWN a house?

  8. #8

    Default

    Are you suggesting it isn't?

  9. #9

    Default

    Quote Originally Posted by Meddle View Post
    Are you suggesting it isn't?
    No, property ownership is not a human right. What proof could you possibly have that says other wise?

  10. #10

    Default

    Quote Originally Posted by Meddle View Post
    So, the poor have less rights than the rich?
    No. Poor have less decisions than the rich, because they have less resources.

  11. #11

    Default

    We ARE talking about 21 houses, right? Not the other thousands that are available at a fraction of those prices in other parts of the city? Am I missing something?

  12. #12

    Default

    Quote Originally Posted by Zozo View Post
    No. Poor have less decisions than the rich, because they have less resources.
    This, in a nutshell.

  13. #13

    Default

    Quote Originally Posted by SammyS View Post
    Are you suggesting it’s a right to OWN a house?
    It's not a right to own a home. Same as it's not a right to own a car.

  14. #14

    Default

    Quote Originally Posted by bartocktoo View Post
    We ARE talking about 21 houses, right? Not the other thousands that are available at a fraction of those prices in other parts of the city? Am I missing something?
    "Affordable housing" is a cliche meaning housing profits for anyone in the affordable housing industry. Subsidies guarantee housing profits in an economy in which the median standard of living has been decreasing since 1978 while regulations, fees, and taxes have made housing less affordable.

    Of course, according to AOC and the Soviet Constitution of 1936, housing is a right. That doesn't mean that quantity and quality are givens.

  15. #15

    Default

    Quote Originally Posted by renf View Post
    In Detroit in 2018, there were 52,000 households swho reported cash incomes below $10,000 and another 21,000 with incomes between . $10,000 and $20,000. If they spend 30 percent of their income for shelter, they can pay $500 per month for rent. I suspect there is not many safe, reasonably maintained units available at that price.
    If all they could afford is $500 per month for rent, wouldn't a section 8 housing voucher cover the difference?

    "How much rent will I have to pay if I have a Section 8 voucher?
    Your rent payment is based on your income. The voucher will pay anything above 30% of your adjusted monthly income up to an established limit. For example, if you earn $2,000 per month and the home you want rents for $900 per month, you would pay $600 and the voucher would cover the difference of $300 as long as the Fair Market Rent for your area is equal to or greater than $900."https://paramark.us/section-8-frequently-asked-questions/

  16. #16

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    Affordable housing in Detroit is defined by needed home improvement work on a cheap rent building in the ghetto which slumlords will not fix, juts collect your SSI and Welfare checks.

    And well kept up Detroit homes with high rent and a paying salary based jobs.

    If you want a nice home in Detroit, find you a subsidized apartment and check for leaks, electrical problems and bed bugs.

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