RIO GRANDE – Cape Issues, a nonpartisan volunteer group, held a roundtable at the Herald building on Friday, Jan. 26, to discuss the complexities and future of affordable housing in the county.
The members of the group noted that the issue is multifaceted, including defining what affordable housing means for year-round residents as well as for the seasonal workforce. Other aspects of the issue include regulatory measures, zoning, planning, available land, transportation, fair housing laws, Federal Emergency Management Agency and flood issues, and the current generation’s ability to afford housing, whether renting or purchasing.
One of the first questions asked during the roundtable was how to define affordable housing. Cape Issues member Andrew Shawl introduced the number 30%, meaning housing should not cost more than 30% of one’s income, including rent and utilities.
In 2020, Cape May County had a population of about 92,700, with a median age of 49.3 and a median household income of $72,385. Thirty percent of that median income is $21,715.50. Divided by 12 months, that means the average household should pay no more than $1,809 per month for rent and utilities combined.
For those looking to buy, the average home price as of October 2023 was $305,000. If a buyer had the average income and was able to put together a 10% down payment, or $30,500, it would take close to 40% of his or her household income to pay principal, insurance and taxes. Utilities would be additional.
As house prices rise, it has become increasingly difficult for people to rent, let alone purchase, a house.
Even homes on the mainland are being priced out of the range of many, or they are being bought up by second-home buyers who have the resources to purchase a shore or near-the-shore property. This raises the question: How can families afford to buy a house in Cape May County? And if they can’t, what does it mean for not only the average worker but, by extension, for the economy and locally owned businesses?
Cape Issues member Peter Jespersen provided a list of problems and possible solutions associated with the housing shortage, including the development of “tiny house” communities, the need for seasonal worker housing, the lack of income-based housing, the county’s role in providing solutions to housing needs, the problem of poor public transportation, and the effect of government regulations on new construction. The issue of creating housing of any sort requires land, which is expensive and increasingly not available.
Additionally, the trend in many cases has been to convert year-round rental properties into short-term rentals using social media platforms, such as Airbnb or Vrbo, because landlords make more money and see fewer problems that way. New construction generally has the highest costs, well above the level of what is considered affordable.
And many people in Cape May do not want to see new development, which they believe takes up open space, replaces natural scenery with buildings, adds to the demand on resources and increases traffic flow.
The loss of affordable housing is driving people out of Cape May County.
Cape Issues is seeking advice from the public. For our economy to function, we need employees, and employees must live somewhere. Please send your ideas to capeissues@cmcherald.com, or send a letter to the editor, or write a Spout Off.
Contact the author, Christopher South, at csouth@cmcherald.com or 609-886-8600, ext. 128.
