Several states have their own strategy to increase the supply of affordable homes, whether for purchase or rent, as the issue of low-cost properties becomes more relevant in the U.S.
In Utah, a certain legislation that gained approval in 2000 has provided positive results. Another state initiative in Colorado provided a $7 million revolving loan to help builders with their affordable housing projects.
A state law in Utah requires cities and counties to use 20% of tax funding for redevelopment projects for low-cost houses. These districts that use tax increment funding use new property revenues to cover the cost of redevelopment. In Salt Lake County, this helped in the construction of 2,300 affordable homes by 2014.
If you plan to buy a house in Weber County, Wasatch Peaks Credit Union notes that a mortgage loan in Ogden and other cities will help increase your chances of finding a good deal. As lower-priced homes remain scarce, some buyers are willing to pay a premium, especially if the location and price of a house align with their preferences. Zillow expects home prices in Utah to increase 4.1% in 2018, so you should consider financing options to help your budget.
Other State Initiatives
California depended on a new law that allowed the working class to live in the most expensive areas. The regulation made it more cost-efficient to construct accessory units, otherwise called granny flats, for local workers.
Housing agencies in Virginia work with state universities and officials to gauge the required homes in 11 regions, amid an expected increase in jobs. According to the Urban Land Institute, this strategy is a good approach to control increasing home prices and rents.
While several states continue to do their part to resolve the affordable housing crisis, homebuyers should think of other ways to improve their chances of acquiring properties.