ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Thursday, May 2, 1996 TAG: 9605020046
SECTION: VIRGINIA PAGE: A-6 EDITION: METRO
1. Some Salem residents say the cost of housing in Salem is becoming too expensive to the average resident. What can be done to keep housing affordable so that the city's young people and first-time home buyers can afford to stay in Salem?
Brown - ``Unfortunately, we are in a `Catch 22' type situation. Salem on the one hand, is a such desirable place to live that property values are driven up. For the home owner or seller, this is good news. For the purchaser this can be bad news. First-time home buyers and Salem's young people have to shop more discriminately. We need to encourage new home builders to build more moderately priced homes.''
Haskins - Says Salem is a desirable place to live. That demand creates higher prices. But says there are still many affordable homes available in Salem. Recent real estate ads had several Salem homes for sale for under $63,000 - one a two-bedroom home for $39,950. ``Those figures seem to be in the price range for first-time home buyers. If the market dictates a strong demand for more affordable housing, I feel certain that home builders will address that need.''
Moore - ``Salem is a land-locked city with a total size just under 15 square miles. The city has an excellent educational system, great services and facilities and a highly competent work force. People like to live in Salem. All of this means that building sites in Salem command a premium price. When a premium price is paid for a building site, the home that is built on that site must be in proportion to the land value. That is why housing is expensive.''
Packett - ``The cost of new homes in Salem averages $105,000, about the same as homes in surrounding Roanoke County. Prices are market driven because we only have 5 percent of our land available for residential and business development. I would encourage developers to build moderate priced homes which are allowed under existing zoning ordinances.''
Smeltzer - ``The cost of a home in the Roanoke Valley ranks ... 46.6 percent lower than Northern Virginia. Salem housing costs reflect the...fact that Salem has excellent schools, a low crime rate, good recreational programs for its citizens and efficient delivery of city services to its citizens ... The problem with first-time home buyers locating in Salem is the fact that the supply of housing in Salem is limited within the city.''
2. What part should the city government play in this?
Brown - ``Our government should encourage builders to build more moderately priced homes. The city should identify all buildable vacant lots in all neighborhoods and encourage affordable homes on these sites where appropriate.''
Haskins - ``City government's role should be to provide the best-quality services possible while holding tax rates at a reasonable level. In doing so, a properly run city government is more likely to inspire real estate prices to increase rather than decrease.''
Moore - ``There is little that Salem City Government can do to impact on private sector market forces. In fact, government attempts, at any level, to change or influence normal market forces, have usually been ineffective and quite often counter productive.''
Packett - ``I don't think local government has the resources to provide subsidized housing with land values being so high. There is nothing the city can do to reduce the price of land.''
Smeltzer - ``None. The cost of housing in Salem is determined by market forces. Government has no role in regulation of housing cost.''
3. Should the city encourage more rental property?
Brown - ``There is already a large cross selection of rental property in Salem. Three apartment complexes offer government-subsidized rental. Many rental houses also exist. Another large apartment complex is in the works. I believe our rental supply is adequate.''
Haskins - ``At this time, there seems to be an adequate supply of affordable rental property in Salem. If availability becomes a factor in the future, then perhaps we should have the city planning department review our position.''
Moore - ``The city should encourage the construction of more [privately financed] rental property. But, again, market forces and the private building industry will determine what and when something is built and at what price.''
Packett - ``We are a college community and rental property is at a premium. Smaller homes that are usually available at moderate prices are being converted to off-campus student housing. Our rate of rental property is high now. I'm not sure we should encourage more.''
Smeltzer - ``If developers see a need to develop more rental property, it will be driven by market forces. The only role that city government should play is making sure that any development is in agreement with existing land use plans.''
LENGTH: Medium: 91 lines ILLUSTRATION: PHOTO: (headshots) Alex Brown\Independent, Harryby CNBHaskins\Independent, John Moore\Independent, Howard
Packett\Independent, Steve Smeltzer\Independent. KEYWORDS: POLITICS CITY COUNCIL