Once an All-American city and a place that was dominated by owner occupied homes, the city now finds itself searching for ways to make more homes available to first time buyers and others who want to own rather than rent.
So what happened?
Over the past 10 years many homes in the market were lost to foreclosure. High unemployment and crime rates drove many residents and businesses away. Investors stepped in the scoop up homes at bargain prices. Buy and hold strategies have left fewer homes for sale in the mix.
Today, a typical 3 bedroom, 2 bath home sells for $200,000. The monthly payment (30 year conventional) with 5% down is $1,280 including principle, interest, taxes and insurance, according to New American Funding. Compare that to rents averaging $1,500 - $1,800. So it financially makes sense to own rather than rent.
Its no secret that neighborhoods with high owner occupied rates add to the quality of life with nice lawns and lower crime rates.
The question many are asking: how can the cities single family home landlords be encouraged to switch from buy and hold to buy and flip strategies - an outcome that would make more homes available to first time and move up buyers.
