The Property Value Explosion
Cape May County, once a haven of affordable real estate in New Jersey, has evolved over the past 50 years into a coveted coastal destination. This transformation, while bringing newfound attention and prosperity, has also presented significant challenges in housing affordability. The surge in demand for second homes by the beach has reshaped our housing landscape, leaving both year-round residents and seasonal workers struggling to find affordable accommodation.
Over the decades, economic shifts have exacerbated the housing crisis. Nationally, what once could be acquired with a little over two years’ worth of average income now takes nearly seven years. This trend has been fueled by these rising housing costs nationwide and Cape May County’s scenic allure. While rising property values have benefited homeowners looking to sell, they have deepened the affordability gap for many families seeking to buy or rent here.
The sustainability of our tourism-driven economy relies heavily on having a stable and adequate workforce. However, the lack of affordable housing hampers our ability to attract workers.
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Thinking beyond ourselves, we can not only sustain the
services and magic of Cape May County, but can further
heighten the momentum which can take us beyond our wildest dreams.
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Despite these challenges, Cape May County possesses a unique opportunity to address its housing crisis. The substantial increase in property values has resulted in a significant boost in tax revenues. While the property-tax windfall presents an opportunity, careful deliberation is required to allocate these resources effectively.
(Note, because governments are slow to commensurately adjust property-tax rates when property values increase, they receive a revenue “windfall.” We have received such complaints: “What do you mean, no tax increase? Why have my taxes gone up!”)
Prioritizing the creation of viable housing options for our workforce, addressing homelessness, and tackling substance abuse are paramount. These issues demand a coordinated approach involving government and the broader community. As county government moves forward with its subcommittees aimed at improving quality of life, it must draw upon the expertise of specialists in these areas to develop a comprehensive long-term plan.
However, it’s essential to recognize that part of the housing problem stems from increasing regulations on home builders and restrictive zoning laws. We advocate for less government intervention, and see the need for certain constraints to be modified to address these issues.
In conclusion, addressing Cape May County’s housing challenges requires collective action and innovative solutions. Drawing from our own local understanding alone would be short-sighted. By leveraging our resources and expertise of those who have solved similar problems elsewhere, we can not only sustain the services and magic of Cape May County, but can further heighten the momentum which can take us beyond our wildest dreams.
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From the Bible: Plans fail for lack of counsel, but with many advisers they succeed. Proverbs 15:22
