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  • the skyrocketing cost of property insurance

    From JAB@21:1/5 to All on Thu Aug 29 15:34:22 2024
    How High Home Insurance Costs Threaten Affordable Housing

    Developers and landlords of subsidized housing, who cannot raise rents
    or charge more for starter homes, say property insurance increases
    could put them out of business.

    For the poorest Americans, finding an apartment to rent or a home to
    buy often means tapping into a vast network of nonprofit groups that
    use public and charitable funds to rehab or build affordable housing.
    Over the past year, the skyrocketing cost of property insurance has
    put that network on shaky ground.

    In Houston, hundreds of apartments once protected from rising rents
    are being sold off to landlords who can charge the full market rate.
    In Selma, Ala., insurance premiums are keeping even heavily subsidized
    homes out of buyers'reach. In Kingsville, Texas, a planned affordable
    housing development was scrapped entirely.

    Costs are rising for homeowners of all types, and in states like
    Florida, Texas and California, it has become harder to get insurance
    at all. The industry says bigger, more frequent storms, along with
    increased home prices and material and labor costs, are forcing them
    to raise premiums or stop writing policies.

    https://www.nytimes.com/2024/08/25/business/home-insurance-costs-affordable-housing.html

    Not relevant in all US States....

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From Retrograde@21:1/5 to JAB on Sun Sep 1 13:02:00 2024
    On 2024-08-29, JAB <here@is.invalid> wrote:
    How High Home Insurance Costs Threaten Affordable Housing

    Developers and landlords of subsidized housing, who cannot raise rents
    or charge more for starter homes, say property insurance increases
    could put them out of business.

    For the poorest Americans, finding an apartment to rent or a home to
    buy often means tapping into a vast network of nonprofit groups that
    use public and charitable funds to rehab or build affordable housing.
    Over the past year, the skyrocketing cost of property insurance has
    put that network on shaky ground.

    The housing "system" as we currently know it in the US is bound for some upheaval for sure. So many factors at play:

    * developers only wanting to build McMansions because the markup is
    greater. No one wants to build houses for poor people, too little
    profit.

    * Places like Houston opening up lowland flood-prone areas to
    * construction, and ensuing disastrous damage in hurricanes

    * Price of insurance rising as damage claims rise

    * Price of houses rising beyond reach of average homeowner

    * etc.

    There was a good article somewhere - maybe the Urbanist or Curbed or
    something - about types of housing that once was permitted that no
    longer really exists: things like group houses, boarding homes, other
    places where you could get something small for less money, etc. All
    gone and mostly for legal reasons. The American market has been reduced
    to individual free-standing houses, apartments, and condos (often free-standing, sometimes semi-detached). All more expensive options.

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From JAB@21:1/5 to fungus@amongus.com.invalid on Sun Sep 1 12:05:03 2024
    On Sun, 1 Sep 2024 13:02:00 -0000 (UTC), Retrograde <fungus@amongus.com.invalid> wrote:

    * developers only wanting to build McMansions because the markup is
    greater. No one wants to build houses for poor people, too little
    profit.

    Quality Modular Homes are not cheap, for instance,
    https://wardcraft.com/
    and then a basement, etc, must be figured into the price. So around
    $333,000.00 US for your basic 3 bedroom ranch, 2000 sq ft, with a
    basement. Do note in some locations, hooking up the utilities can be
    quire expensive.

    A Habitat house costs approximately $135,000-$165,000 to build. A new
    Habitat homeowner will only pay what it cost to build the house. https://patuxenthabitat.org/homeownership-criteria-and-applying

    Then figure in lot cost, foundation, utilities' hookup, permits, etc.

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From Retrograde@21:1/5 to JAB on Mon Sep 2 14:09:12 2024
    On 2024-09-01, JAB <here@is.invalid> wrote:
    On Sun, 1 Sep 2024 13:02:00 -0000 (UTC), Retrograde
    <fungus@amongus.com.invalid> wrote:

    * developers only wanting to build McMansions because the markup is
    greater. No one wants to build houses for poor people, too little
    profit.

    Quality Modular Homes are not cheap, for instance,
    https://wardcraft.com/
    and then a basement, etc, must be figured into the price. So around $333,000.00 US for your basic 3 bedroom ranch, 2000 sq ft, with a
    basement. Do note in some locations, hooking up the utilities can be
    quire expensive.

    A Habitat house costs approximately $135,000-$165,000 to build. A new
    Habitat homeowner will only pay what it cost to build the house. https://patuxenthabitat.org/homeownership-criteria-and-applying

    Then figure in lot cost, foundation, utilities' hookup, permits, etc.

    Now for bonus points, add up the total value of the materials. In a
    $300k house, maybe $75k in wood, steel, glass? All the rest is labor
    and fees/licenses/permits and markup.

    Makes you want to go build a shack in the woods: oh wait, that's
    illegal.

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From JAB@21:1/5 to fungus@amongus.com.invalid on Mon Sep 2 12:26:01 2024
    On Mon, 2 Sep 2024 14:09:12 -0000 (UTC), Retrograde <fungus@amongus.com.invalid> wrote:

    Now for bonus points, add up the total value of the materials. In a
    $300k house, maybe $75k in wood, steel, glass? All the rest is labor
    and fees/licenses/permits and markup.

    Makes you want to go build a shack in the woods: oh wait, that's
    illegal.

    If a slight hillside existed, I suppose a walk out basement home would
    be the cheapest way, if concrete price is reasonable. If well
    insulated, heating/cooling cost would be peanuts, especially with a
    ground sourced heat pump. If roof/outside walls were done via
    trades-person, then a DIYer could do the rest if no zoning requirement
    said otherwise, or if no zoning codes existed.

    There are still counties without zoning requirements.....

    Years ago where I lived, a house could be torn down, and the lumber
    could be re-used, but I suspect most counties/cities prohibit this
    practice today.

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)