As the federal interest rate spike is expected to raise mortgage rates even more, WPTV has learned the National Association of Counties is addressing the affordable housing issue with the federal government, saying their definition of the term is making it more difficult for families to buy a home.
"That is a complaint we get," Commissioner Susan Adams of Indian River County District 1 said.
Adams told WPTV reporter Kate Hussey that the U.S. Department of Housing and Urban Development, or HUD, sets the definition of an affordable home by calculating the average median income of an area.
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However, she said across South Florida, including the Treasure Coast, that number is skewed by those who can afford multi-million dollar homes and retirees.
"You know, we would consider maybe, $200,000, $150,000 for a single-family home, maybe up to $250,000 as affordable," Adams said. "But the federal government's definition and HUD's definition of affordable might be as high as $450,000, which is not affordable for your average worker, or your average family, by any means."
Bob Calhoun, the CEO of St Lucie County's Habitat for Humanity, has seen the issue firsthand.
"I think more accessible affordable housing is the real issue here," Calhoun said.
Thursday, the nonprofit broke ground on 10 new affordable homes, partially in response to exponential increases in need.
"We had a threefold increase in the number of applications and interest in this," Calhoun said.
Back up in Indian River County, Marty Mercado, the executive director of the Hope for Families Center, which helps families get back on their feet, said she's seen the need increase too.
"The need has become alarming because we can't find affordable housing," Mercado said. "Our phone rings off the hook, all day long, and there are several families we just have to say, 'We can't help you.' It keeps me up at night."
It's the reason Adams said she went to a conference, advocating policy changes to HUD, and asking the federal government to recalculate their definition of affordable housing.
"We want to keep our workers here, our young families here," Adams said.
Progress like that, at least, is encouraging for Mercado, who said having her voice and others heard is a critical first step.
"This isn’t a quick solution. It’s going to take strategic planning on everybody’s part," Mercado said. "We need to look at options that are affordable, and how we're going to do that."