In the last few weeks, I’ve been listening to a lot of city council people make their pitch for the upcoming election. What has struck me is the number of individuals stressing that city councils are non-partisan in nature and the goal of the (mainly) part-time citizen council is to oversee basic city services. Basic as in getting the streets plowed and the garbage picked up. There is a definite less frills more nuts and bolts type of vibe.
Which is as refreshing as a jump in the lake after twenty minutes in a sauna.
One vibrant gal from a suburb which was built in the 50’s, you know the ones with the oversized, heavily treed lots partially covered by one level homes, won me over immediately when she expressed interest in hearing from all sides of an issue. Her family moved to the area when she was one and she, in turn, had raised her kids blocks from a park with maples and oaks. In her view her role is to preserve what is good about the city so others would settle in, as her family had done.
One issue she mentioned relating to housing was the desire to catch homes that need repair before they deteriorate to the point of being irredeemable. The typical municipal reaction to this is to enforce a truth-in-housing review of homes at time of sale, along with a possible repair obligations. A policy that’s a nice, if not evanescent, thought with absolutely zero effect.
Only a small sliver of the housing in a city is sold in a year. Distress in a building is a process which happens over decades. A roof, for instance has a 22-25 year lifespan. Damage from a leaky roof would result following many years of deferred maintenance. Putting the spotlight on the properties going to market continues to leave those which need help in the shadows.
The concern is real even if the solution is opaque.
Similar homes can have a range of pricing depending on how well they have been kept. Ones with new mechanicals command higher prices. Most properties have some sort of mix; a new hot water heater, old furnace, and ten year old windows. These settle in the middle of the range. And at the lower end the buyers realize they will need to jump right in and start making updates. But in all three scenarios the home is habitable. It is a viable shelter for the new owner. And the price is substantially greater than the price of a lot in the same neighborhood.
When the deferred maintenance meets a threshold where the market no longer feels it is viable- the extra kicker maybe settling cracks in the garage foundation wall, then the price drops noticeably. It hovers only slightly about the lot cost– positioning it for a possible tear down. This is the point where a lot of equity goes wasted. If some of the core mechanicals had been better kept, or the kicker ‘last straw’ flaw been averted, one could dodge the price dip.
Here’s where the city could forestall the shift from habitable to the mainstream, to demolish and rebuild.
The city could first play a roll by abolishing any type of truth-in-sale which is a complete waste of time, and second by directing services towards homes that are on the tail end of a slide. Owners in these situations are likely to be better off living in another type of property. Perhaps they need help decluttering, or with estate sale services, or a variety of non-profits which help with such things. Perhaps health issues are keeping them from making the switch.
Offering information and connecting people to service providers could help them to move before the property becomes unacceptable to main stream buyers. This will not only keep the properties in better shape it will facilitate a difficult move for a resident to a residence better suited to their needs.