James C. Makens: No housing problem
Wednesday, June 20, 2007
Steamboat Springs does not have an affordable housing problem. Houses, townhouses and condominiums continue to sell briskly at today's high prices. In fact, in some cases buyers have arrived in throngs and paid over the asking price.
Someone is willing and able to pay those prices. Obviously they find the housing products to be affordable. The problem with City Council and other affordable housing myth-makers is that those willing to pay market prices apparently are, in their minds, the "wrong" people. Myth-makers say that "desirable" people cannot pay market prices. Thus government social engineering emerged in Steamboat Springs.
Government social engineering requires subsidization, which in turn leads to government confiscation of private property/wealth. If profits are artificially limited by government schemes, then infringement of private property/wealth rights occurs. If government forces land or buildings to be sold at less-than-market rates, then private property rights are negated. If government action causes construction and rental costs to artificially increase to pay for social engineering, then buyers and users pay more than they should and suffer a loss of private wealth.
If City Council members truly believe in social engineering to ensure home ownership by "desirables," let them demonstrate their commitment by selling their own personal homes to these "worthy" individuals at less-than-market rates. A price such as $100,000 for any of their homes might be a nice place to start.
James C. Makens
Steamboat Springs
Comments
Mr_B 5 years, 11 months ago
Does anyone hear $98,000?
beentheredonethat 5 years, 11 months ago
Mr. Makens is spot on with his analysis. The City should not involve itself in the private market. What is next? Setting grocery item costs for affordable shopping? Predetermine what prices restaurants may charge for affordable eating?
beentheredonethat 5 years, 11 months ago
If you cannot afford to live in Steamboat Springs, then commute.
Jon Casson 5 years, 11 months ago
It has nothing to do with "desirable" or "wrong" people. And its not a "myth", the simple fact of the matter is that housing prices have more than doubled in the past few years for entry level condos and townhouses. For example, a 2bdr Whistler Village townhome was going for around $150k in the summer of 2005. They're now in the $300k range. The median income in Routt County is around $45-50k per year. Do you know of any lenders that'll lend $270k (assuming 10% down) to someone with that income level?
The "desirable" people you speak of are nurses, firefighters, teachers, coaches, police officers, etc. who can no longer afford to purchase a home, townhouse or condo at market rates. What happens to basic services in our community such as education or public safety when the people needed to fill those jobs cant afford to live here?
jlkar 5 years, 11 months ago
Thank you AGAIN, James. We already heard your remarks back in Dec 2006. The truth is, you got into the market before it skyrocketed. Congratulations. Enjoy your cash and let the rest of the community make the decision of whether or not we would like to help one another STAY in Steamboat. You and your friends from the mid-west can continue to buy and sell whatever you please- you can't seriously think that a couple affordable housing projects are really going to lower the value of your Dakota Ridge lots, can you? And the point remains, as much as you would love to bring your high-class education into it, that teachers, hospital workers, winter sports club ski coaches, waitresses and believe it or not, PROFESSIONALS that serve all people, shouldn't HAVE to drive an hour in and out of town everyday. But, to stay away from having neighbors like you, I am glad I do. And yes, James, those folks could move out of town. But then, who would get paid $9/ hour with a college degree to do those jobs? You? Your spoiled kids? Please stop writing reduntant articles... obviously there are enough people that have a concern for affordable housing.
Public record... MAKENS, JAMES C. AND MAKENS, MARION K. TO YAMPA BOYS LLC FOR DAKOTA RIDGE SUBD LOT: 19 - $325,000
MAKENS, JAMES C. AND MARION KAY TO MAKENS-AMSDEN, SUSAN KAY AND AMSDEN, BENJAMIN CLARK, JR. FOR ELK RIVER MTN RANCH SUBD Lot: 26 $163,500
Keep on Truckin James. Thanks for your insight.
Matthew Stoddard 5 years, 11 months ago
Beenthere- Nobody's in the market to make a "quick" buck on groceries or restaurants. Purchasing a meal isn't regarded at an "investment" as purchasing homes are. What Mr. Makens forgets is that a good portion of the home sales are someone who doesn't even live in the place. They buy it and put it back on the market a very short time afterward. It barely goes to use. Real Estate is the T-Shirt shop of the new millenium in Steamboat, or if you prefer, the new day-trading.
And just-10 is absolutely correct about the increase in prices at Whistler Village. I used to see the estoppels come across for those and in 2005, the highest I saw was around $160,000. When my mother bought her Walton Village 1Bdrm unit around 1982-ish, barely after they were built, those sold for somewhere near the $20,000 range. In 2001, those were selling around $80,000 average. Now, those are listed for $250,000 range...for the same 25yr old 610sq. ft units. 20yrs to quadruple in price, then 6 years to triple yet again.
thefarmer 5 years, 11 months ago
Tell it like it is, Mr. Makens. Do you think our City Council has ears?? jlkar, kiebasa, and just 10 are no better. They have no understanding of our free enterprise system and a free market. The price of homes, and it should be, is driven by demand. Goverment has no place in the home market. That is a function of developers and builders. If there's a need, they will build it. Our system provides for employment by paying them a salary that will permit them to live here, not buying them a home.
Jon Casson 5 years, 11 months ago
Private affordable housing was tried by several developers over the last few years but speculators bought them up and flipped them for huge profits. Other attempts at market rate affordable housing fell apart because private lenders wouldnt touch deed or income restricted properties without government backing.
I dont know what the answer is, but the simple fact is that working class people can barely afford to buy homes here.
As for farmers statements, do you want the people who are teaching our children in our schools to be transient workers? Why would someone take a job in our school systems if they come in knowing that there was no chance of them ever owning a home or have the financial means to make a living and raise a family in Steamboat? Maybe a better solution is to approve a new school bond to raise the starting salary for a teacher to 50-60k range so they can afford to live here. We'd also have to raise taxes to pay our police and firefighters a livable wage? How do you feel about that?
Just take a look through the Pilot Employment pages and then through the Homes for Sale and do the math. Like I said before- I dont know what the solution is, but if you dont think there's a problem- go talk to the YVMC, The Police Dept, The Schools, etc and ask them how much difficulty they have attracting qualified people to come here and work in those fields.
Matthew Stoddard 5 years, 11 months ago
No, I have a very good understanding of the market here. Been living and working in it for almost 30yrs in Steamboat alone. I've seen Steamboat with no tourism in the summer to what we have now, and tried to earn a living as a wage slave back then.
Farmer- I'll pose the same question to you as I have to others: do you own your own business here that is completely not dependent on wage slave workers? Is it hard to find those workers? If so, why is it so hard to find them and keep them?
As for the "if there's a need..." comment- that only way that works is when a small few people bitch louder (Nimbyism) about not needing it.
Again: how many Dakota Ridge owners are bagging your groceries at City Market or Safeway? How many owners at the Sanctuary are flipping your McDonald's burger? How many of them are waiting your tables when you go out to eat? Need more examples? Ask your next clerk/waitress/etc. how much their home cost when they bought it and if their salary was enough or if they needed a 2nd job. Everyone should work 2 jobs to afford necessities, correct?
Matthew Stoddard 5 years, 11 months ago
Beenthere- I've already stated in other posts that the commuters are starting to find jobs closer to home that may not make as much money, but more than balances out the wear and tear on POV's or the expense of SST from Craig. Bedroom communities in this area are losing steam. If not, we wouldn't be paying people to commute from Eastern Europe, the Caribbean, Africa, etc. I work in the business, so I see exactly where these people are coming from...or hadn't you noticed the influx of the people I've mentioned?
Matthew Stoddard 5 years, 11 months ago
JQ- So you don't bother frequenting restaurants (burger joints) motels (hotels, condo, vacation lodging), bars, etc., correct? Obviously not, otherwise you'd have nobody to help you with whatever you need. Are you a shut-in like SBvor?
corduroy 5 years, 11 months ago
can't afford to live in Steamboat can't afford to live in Stagecoach can't afford to live in Oak Creek can't afford to live in Hayden
see a pattern here? its not just in town, I've already accepted the fact that 300k is insane for a normal working person. But houses in nearby areas of Routt County aren't any cheaper. I went to Oak Creek, I looked at houses between $200k to 300k and they all were in dire need of a new roof or a new foundation.. is that affordable?
rw1963 5 years, 11 months ago
Kudos to James Makens for his defense of property rights, and his observation that economic interference by government violates those rights.
It is not the proper role of any government to provide housing or any other economic value. The only way that government can thus "provide" is to forcibly take the property of some individuals and give it to other individuals. Which is robbery. No law can legitimize such extortion -- government's proper purpose is to protect individual rights, not to violate them.
The Ayn Rand Institute ( www.AynRand.org ) presents an excellent moral defense of private property rights and free markets.
JQPUBLIC 5 years, 11 months ago
just_10.... "raise the starting salary for a teacher to 50-60k range so they can afford to live here. We'd also have to raise taxes to pay our police and firefighters a livable wage? How do you feel about that?"... GREAT, those are necessary public jobs and this makes more sense than the government using tax money to award the recipient of their choice with an affordable house while the others are sh*t out of luck until the next government housing lottery (provided with other peoples money). Let burger joints,bars, motels, etc. figure out how to keep their own help, they are in a for profit business. The one thing this country really needs is more government control, they are sooo good at knowing what's best for us.
Matthew Stoddard 5 years, 11 months ago
Hash- Steamboat isn't the norm. It's a small resort town that is no more than 10 miles long, approximately. In cities such as New York or even Denver, they have more than 1 access to travel an hour to their work places...not just 1 way in or out. You can't compare the 2 in that manner.
Plus, planning ahead only helps if it's a stable market...not if it jumps 100% in 2 years such as with Whistler Village Townhomes. That's not stability. As for the rude people, ever think they might be rude due to being pissed they had to commute for an hour?
JQPUBLIC 5 years, 11 months ago
hash_ garret is right on all but this one point... "The rest of us are not going to rush in and rescue you just because you want something you cannot afford"... he's wrong there, the government is forcing us to do just that.
Yes, I eat, drink, and shop, and I already go elsewhere for shopping. I don't like the rude workers (no matter the reason), I don't like rude tourists, and I don't like paying more sales tax than the item would cost elsewhere. What I like is the area, the hunting & fishing, and the down to earth (commute to work and/or old time) locals, I like the atmosphere in a lot of the businesses of Craig, Hayden, and South Routt. When everyone else pays toward housing for the employees of a for-profit business, the businesses gets richer, the tourists get waited on hand and foot, and the taxpayer gets screwed.... again.
Steamboat isn't there for the locals, it's a ski and tourist town where the rich like to have second homes. All but the wealthy already shop in other places and the only time we're missed is when the town is between events and tourism is down, then they whine they aren't supported by locals.
kielbasa...HOW MUCH affordable housing will be built in Stmbt... enough to house EVERY teacher, cop, firefighter, emt, bartender, waitress, cashier, lift operator, nurse, maid, janitor, etc., if not, do you think the lucky handful of affordable housing recipients will be enough to staff the "burger joints motels hotels, condo, vacation lodging, bars", you refer to in your post?
Why is it... when my opinion differs with some, I'm an unintelligent, opinionated, shut-in? This would sure be a boring comment board if everyone had the same opinion.
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