12,612 Clark County families priced out of purchasing a home due to soaring lumber prices
The Building Industry Association of Clark County (BIA) reports new estimates of the number of Clark County residents priced out of purchasing a home.
The recent spike in softwood lumber prices has caused the price of an average new single-family home to increase by $16,148 since April 17, according to the National Association of Home Builders (NAHB)’s Standard Estimates of Lumber used to build the average home.
As of Aug. 21, the price of framing lumber topped $800 per thousand board feet — a 130% increase since mid-April. Prices reported on April 17 showed the total cost to a builder for all the lumber and lumber-related products was $16,927. As of Aug 21, the same lumber costs for builders has risen to $30,470. This is a $13,543 (80%) increase in only four months.
The price of the home to the ultimate buyer has gone up by even somewhat more than this, due to factors such as interest on construction loans, brokers’ fees, and margins required to attract capital to residential construction and get construction loans underwritten. For items such as lumber that are purchased and used throughout the construction process, NAHB has estimated that the buyer’s price will increase by an additional 19.2%.
This comes at a time when Clark County is experiencing a housing shortage and a housing affordability crisis. The county is experiencing its lowest inventory level in the past three years, sitting at 1.6 months of inventory. With affordable homes ($250,000 to $300,000 price range) estimated to only have .5 months of inventory.
In July, the median price of a home was $384,400. A household income of $92,900 is required for an affordable monthly mortgage payment (less than 30% of total income). Clark County’s median household income is only $74,060. Based on a previous NAHB study, we know that for every additional $1,000 of added cost, 781 families are priced out of buying a home. That means that due to the inflation of lumber prices and the added $16,148 added to the cost of constructing of a new home, 12,612 families will be priced out of purchasing a new home.
“While we wish we could combat the lumber prices locally, we can remind elected officials and those involved in community planning to consider the unintended consequences of added regulations and increased fees; it all adds up. Whether it be building permits, impact fees, or other fees charged by local governments, all are reflected in the price of a home and can make them less affordable,” stated Executive Director Avaly Scarpelli.
Eviction rent assistance program now available
A new rent assistance program is available to assist tenants in Clark County who owe partial or full rent to their landlord in March 2020 or later. Households must also have an income equal to or less than 50% of Area Median Income ($46,050 for a family of four). Additional screening requirements must also be met. However, citizenship documentation is not required.
Up to three months of assistance may be provided to eligible households. Assistance will be provided to eligible households until available funds are expended. Households may only be assisted one time with these funds.
Anyone needing to access the program are encouraged to call the Council for the Homeless Housing Hotline at 360-695-9677, for all languages from 9 a.m. to 5 p.m. Monday-Friday and 11 a.m. to 5 p.m. on Saturdays or Share at 360-952-8317 ext. 387 in English or 360-952-8318 ext. 386 in Spanish, Monday-Friday 9 a.m. to 5 p.m. Additional information can be found at CouncilForTheHomeless.org/ERAP.
The Eviction Rent Assistance Program (ERAP) Grant is intended to prevent evictions by paying past due, current due and future rent, targeting limited resources to those with the greatest needs while working to distribute funds equitably.
This project was supported by a grant awarded by U.S. Department of the Treasury. Grant funds are administered by the Local Government Coronavirus Relief Fund through the Washington State Department of Commerce.
City of Vancouver receives high credit ratings from Standard & Poor’s, Moody’s
The City of Vancouver has received high credit ratings for the sixth consecutive year from Standard & Poor’s and Moody’s.
Standard & Poor’s Global Ratings assigned its “AA+” rating to the city’s 2020 limited-tax general obligation refunding bonds and affirmed its “AA+” rating on the city’s outstanding general obligation bonds and an “AA+” rating on the city’s Downtown Redevelopment Authority’s (DRA) conference center project refunding revenue bonds.
Moody’s Investors Service assigned an “Aa2″ rating to the city’s limited tax general obligations refunding bonds, as well as affirming an”Aa2” rating on the city’s DRA bonds and an “A3” rating on the DRA’s sales and lodging tax refunding revenue bonds.
Credit ratings are forward-looking opinions about credit risk and express the agency’s opinion about the ability and willingness of an issuer, such as city government, to meet its financial obligations in full and on time. The high bond ratings help ensure that future Vancouver debt will be issued at the lowest possible interest expense and cost to taxpayers. High ratings also allow for the potential to refinance outstanding debt at lower interest rates, saving taxpayers’ money over the term of a bond.
Vancouver’s credit rating from Moody’s reflects the credit agency’s view of the city’s large tax base and economy, average wealth measures, strong financial position, and manageable debt and pension burdens.
Standard & Poor’s rating reflects their view of the city’s strong economy and very strong management, financial policies/practices, budgetary flexibility, liquidity and debt/contingent liability profile.
“We are very pleased that the city has once again achieved high quality credit ratings,” said Natasha Ramras, chief financial offer for the City of Vancouver. “These ratings affirm the city council’s and city staff’s commitment to our strong financial and budget practices and history of prudent financial management and strategic investments.”
