Angela Ashby: Clarifying the costs of home ownership
Every day, I work with local families including teachers, health-care professionals, first responders who are trying to purchase homes. I know their stories well. I know how disappointing it is to miss out on yet another property, because there are multiple people vying for the same property.
I understand the array of lending options available to purchase a home in the price points that Brynn Grey is targeting for the 108 deed-restricted properties. Don’t be fooled or scared by some of the letters to the editor, but truly educate yourself on what lending looks like for this opportunity.
Also, lest we forget that we are being offered a significant gift of land to the Yampa Valley Housing Authority to build up to 50 units that target locals making under 80% area median income. It has been a really long time since we as a community have received a gift of land.
I want to clarify a few points that were referenced in the letter to the editor published May 15. West Steamboat Neighborhood target pricing is based on the area median income of a four-person household; not a single income household, as was suggested. West Steamboat Neighborhood includes 158 homes for between 80% to 150% AMI households. For reference, 100% AMI is a four-person household earning $86,700 annually.
With that in mind, here are some simple calculations:
The Steamboat Springs School District average teacher salary is $43,624 and the average Steamboat Springs police officers’ salary is $71,885. If we assume that a household with these (or similar) professions purchase a home together, their total income would be $115,509 a year, or $9,625 a month.
With 5% down on a $400,000 home at an interest rate of 4.5%, the total mortgage payment would be around $2,400 a month and includes principal and interest, mortgage insurance, taxes, insurance and HOA.
This results in a housing ratio of approximately 25%, well within the range of affordability by industry standards — 30% of monthly income. To compare, average rental rate for a three-bedroom property in Steamboat Springs can be $2,500 to $3,000 a month, if you’re lucky enough to find one.
In summary, West Steamboat Neighborhoods is our best solution for keeping people who work here living here and to provide a sustainable supply of product over the next several years. Please vote “yes” on this important project that will not only provide move-up housing but can free up entry-level properties for other working families that want to live in this amazing community.
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