Housing: The Impossible Dream?

I read a stunning statistic last week.

The median age of first-time homebuyers is 38.

Considering that the average lifespan in America is 77, that means that Americans are middle aged before they purchase their first home. Or looked at another way, first-time buyers are out of high school 20 years and only 24 years away from the earliest age they can receive Social Security benefits when they purchase their starter home.

Yikes.

As soon as you acquire a home (and a list of honey do projects that go along with it) you also acquire a sore back, creaky knees and a desire to nap because you’re pushing 40.

In 1991, the median age of first-time homebuyers was 28. As a twenty something in the early 90s, That sounds about right. I remember that era as a time when most people of my generation were settling down and buying “starter homes.”

Our first townhouse in Delray cost $69,000 with all the upgrades included. It was brand new, affordable; the neighborhood was cute, and it came with a pool and a tennis court.  Not too shabby.

The townhouse itself was modest, we had a small courtyard, a tiny home office and room (barely) for a golden retriever. I remember being thrilled to be an “owner” and felt connected to my community.

Not that renters aren’t important or connected, but there’s something intrinsically different about homeownership. You feel a part of things. Your vested; and invested too.

Back in those affordable days, things overall felt different. There was a palpable sense of community back then, South Florida felt like a new frontier with limitless possibilities. It was affordable and on the move.

But these days it feels like we live in a very different landscape. And I think a lot of it is driven by home prices and the cost of living overall. When you factor in insurance, taxes and everything else it takes to make it these days you scratch your head and wonder: how does anybody afford this? And how are young people supposed to get started?

For example, recently I had lunch with two retired fire chiefs.

They were telling me that they are seeing firefighters living hours away from the cities they serve because they can’t afford to live anywhere in our community.

Work schedules enable these men and women to live in far flung places and make the long drive back home after working 2-day shifts in which they sleep at the fire station.

I recently spoke to a retired Delray police officer who now consults on public safety and emergency preparedness nationwide. He says he knows of firefighters in California who fly home to another state in private prop planes after clocking out to find more affordable housing.

All of this is perfectly understandable. And the trend is not limited to firefighters. Police officers, city managers, department heads and other civil servants, including teachers and nurses are finding it hard or impossible to find attainable housing—and that includes affordable rents.

If you didn’t have a home before the rise in prices, this is a hard market to crack.

I ask people that I know—some very wealthy—if they could afford to buy the home they currently live in if they had to buy it today. To a person, all have said no.

So ,what do we lose when essential workers, public servants and public safety workers can’t afford to live where they work?

I would argue a whole lot. Instead of long-term contributors we may end up with people who clock out emotionally as soon as they are off the clock. Of course, this is not universal. I know plenty of people who don’t live here who care more for this place than those who do. But it’s human nature to give back to the place where you rest your head at night. It would also be natural to quit your job in Palm Beach County if you can find something closer to your home in Palm Bay or Port St. Lucie.

But if your workforce lives locally, they often serve that community and care about that community in myriad ways. They may coach youth sports, they may serve on their homeowner’s association board, or volunteer for a local nonprofit. They get involved in schools because their kids are being educated where they live, not where they work.

I think the holy grail for a city is to create a place that people love. If you fall in love with your city, you commit to that place, you invest your time, charitable dollars and soul in that city’s success. It becomes more than just a place where you work and leave for that long drive home, it becomes home.

I was fortunate to serve with a team of city department heads and staff that lived, worked and played in Delray. Because they lived here or nearby, their hearts were here too. They were long-term players who devoted their careers to this place.

I remember being a young reporter and covering Mayor Tom Lynch and the commission he led. Last week, I ran into former Mayor Jay Alperin and former Vice Mayor David Randolph at a charity event, and I started to think about those days again. It was the early 90s and one of the bedrock principles of that particular commission was to encourage home ownership. They formed a Neighborhood Task Team to dive into issues impacting neighborhoods. They talked about code enforcement, trash clean-up, lighting, landscaping and public safety. It was all aimed at stabilizing neighborhoods and encouraging people to come here and put down roots.

It was a sound strategy. And it worked. But today, it’s harder because the barrier to entry is daunting.

Clearly market forces and societal changes are playing a role in delaying the age at which people buy their first homes. People are getting married later and birth rates are declining too.

Another factor is that older homeowners with lots of equity or even a paid-off primary residence are a little less sensitive to the recent mortgage rate increases. Or they can’t afford to move because if they do so, their taxes will triple even with portability thanks to Florida tax laws.

But regardless, I think what we’re seeing is sobering and needs to be studied. As noted in a prior column, our area is changing rapidly. Major players with vast resources see our slice of paradise as an opportunity for more commerce, more luxury, more everything.

It’s exciting. “Change” my friends, is inevitable. It is not something to lament, but it is something to shape.

Hopefully, as we rapidly evolve, leaders will consider the price of housing, both to own and to rent as they shape the future. Because if we don’t find a place for our teachers, cops, service workers and young professionals we lose a lot. We lose the soul of our communities, the people who make a place, a home.

 

Notes:

Congratulations to Community Greening’s Executive Director and Co-Founder Mark Cassini who recently won the 2024 “Friends of the Urban Forest Award” for being an  “Outstanding Advocate”.

This recognition was highly deserved as Mark is indeed a champion of urban forestry and his organization does outstanding work in so many communities.

It has been a joy to watch Community Greening grow and thrive.