Who Can Afford Affordable Housing?
Photos
So I read in the Washington Post last week that Montgomery County is projecting a shortage of affordable housing and "needs" for the government to help provide a minimum of 70,000 new units over the next 20 years for people who make less than $50,000.
Why?
What happened to the market economy? When and where a product is demanded - of any type - private enterprise (unencumbered by onerous regulations and taxes) will find a way to provide it. If the profit incentive to satisfy the demand doesn't exist… perhaps the market is better off without the product. In any event, our government has proven inept at providing services. Why would we trust it to intervene in the housing market more than it already does?
The worst part? The concern is based on projected immigration patterns. So people who are not here, are not part of our community (yet) are going to be the beneficiaries of a wealth transfer from me and all other property owners in the county. That's right, the County Council is taking money from hardworking, home-owning taxpayers and using it to subsidize housing for people who don't even live here yet!
And why would people who can't afford Montgomery County come here? Perhaps the excellent, bi-lingual schools are an attraction? Perhaps they come to enjoy quasi-urban living where you really can live car-free? Perhaps people have heard about our generous social services that ensure all residents can access higher education and health care regardless of ability to pay and an abundance of opportunities for anyone willing to work.
Folks, wake up. Montgomery has nothing to be ashamed of relative to our generosity to the poor and working classes. Our beneficence is manifest and will keep attracting service workers and unemployed people without any effort to create MORE affordable housing. We need to actually reverse these spending patterns and work to attract wealthy individuals and businesses to Montgomery County.
Wealthy people own businesses, employ workers and pay taxes. This alone should attract workers - without the government spending YOUR tax money on social services. When the government charges too much in taxes or makes living here unattractive to the wealthy, we risk turning the equation around. Demographic patterns clearly show Montgomery County is in the process of chasing away wealthy taxpayers in favor of the poor and working classes. That's all well and good if it makes you feel good, but play out the long term consequences and not only will we run low on taxpayers but without the revenue they provide, we won't be able to pay for any of the social services of which we are rightly proud.
It is counter-intuitive to those whose political persuasion demands increasing our reliance on entitlements, but economic truths are hard to deny. If you think it's important for the government to give more pie to the less fortunate, you need to grow the pie. Increasing taxes and entitlements means less pie for everyone and eventually… you'll run out of pie.
Dick
7:09 am on Wednesday, January 18, 2012
Excellent article. The county is losing out to Northern Virginia in economic growth. Maryland and Montgomery County are driving business and high income earners out of the state. Retired people, on fixed incomes, will have to flee the state in order to maintain their standard of living. Most retires have seen their retirement funds tank, minimal returns on their CD's, and little or no increases in their pensions while the County and State are looking at a whole range of new taxes. They don't understand living within their means.
Theresa Defino
8:27 am on Wednesday, January 18, 2012
Nice work, Mr. Grossberg. You do the Koch brothers proud.
hmj
8:33 am on Wednesday, January 18, 2012
No more apartments --- please. They don't pay their own way. "Affordable housing" for some means much higher taxes for others. No need to continue to import poverty. Elected leaders need to start representing the citizens in the County now.
A
9:56 am on Wednesday, January 18, 2012
hmj, I live in an apartment as I just graduated from college a year ago. I receive no government subsidies and I pay my own way. I even have taxes that pay for the same things you all are griping about. Bethesda is extremely expensive and if I did not love my job I would leave the area in a second to go to a more affordable location. My monthly rent allows for a local Bethesdian to get some extra income as well. So please, do explain how I do not pay my own way?
hmj
1:43 pm on Wednesday, January 18, 2012
County planners estimate how much ( on average ) each unit will generate in terms of revenue ( property taxes and local income taxes). Also, they estimate the cost of providing county services to each unit ( like public schools, police , fire, recreation, etc). When you compare the two fiigures (revenue versus cost) apartment units cost the county more than the revenue generated (per unit). However, when you look at individual cases this may not always be true. For example, a high income single person in an apartment would generate more revenue --- and if the person had no children in the public schools --- lower cost. This should give you an idea. Talk to local planners and you will see that they agree. This is suggest you need a balanced approach to housing types / costs, but developers can make more money today on apartments. Time does not permit more on the subject.
jnrentz1
10:09 am on Wednesday, January 18, 2012
Thank you Mr. Grossberg.
Excellent article.
Jeff Hawkins
1:43 pm on Wednesday, January 18, 2012
Frank:
Yours.......
Corbin Dallas Multipass
3:28 pm on Wednesday, January 18, 2012
1) "In any event, our government has proven inept at providing services."
2) "Perhaps the excellent, bi-lingual schools are an attraction?"
I wonder who provides the excellent schools.
Other fun things left out is that the study in the article that was published in October and the country reacted to as depicted in this Gazette article (http://www.gazette.net/article/20111130/NEWS/711309511/1122/bowie/Montgomery%E2%80%99s-affordable-housing-gap-growing&template=gazette) is financed by BOA and other local businesses, so it would be safe to assume that this is actually somewhat business/wealth friendly.
Also, there's a whole explanation in the article of why a county and our state would want local workers as opposed to "in commuters" (commuters who come from out of the county):
"many [in-commuters] can’t afford the higher rents and home prices closer to the city, leaving them instead to face long commutes that tax the region’s infrastructure and take money away from the local economy."
Also
"The result: More than 4 percent of the Washington region’s economic activity, or about $18 billion annually, gets transferred out of the region"
The trade off may in fact be that while you are paying more in local taxes, you are saving in state taxes and getting more local tax revenue to make up for it.
Theresa Defino
5:30 pm on Wednesday, January 18, 2012
@Frank, I actually just read his bio. I am not going to get into this debate because I have a policy against discussions with cult members.
About Daniel
Dan Grossberg is an IT manager originally from Ohio. He and his wife and three daughters have been living in North Potomac for 8 years and they love living here. Politically, Dan is independent and fed up. In his spare time he chairs Americans for Prosperity's local chapter that works for government that is more transparent, more responsive to taxpayers and less costly.
Jeff Hawkins
2:54 pm on Thursday, January 19, 2012
@Theresa,
Frank is a little misguided maybe, but a "cult" member? Who knew? :)
Nearby
7:39 pm on Wednesday, January 25, 2012
"Demographic patterns clearly show Montgomery County is in the process of chasing away wealthy taxpayers in favor of the poor and working classes. " Good Tentacled Prime Mover! Who let the riff raff in? Throw up the gates now and hire the security guards. Please show us (using your demographic patterns or other real data) how we will "run low on taxpayers" by providing more dwellings for them. I suspect this person who wants us to "work to attract wealthy individuals and businesses to Montgomery County," would also gripe about the traffic involved or the improvements to transportation services needed to get all of the low-paid servants and workers to these individuals and business from the places he would rather have them live.
Dan Grossberg
2:30 pm on Thursday, January 26, 2012
Thanks all for the thoughtful comments. Please check out my post on the SOTU.
http://northpotomac.patch.com/blog_posts/the-state-of-the-union-7986f050
Corbin Dallas Multipass
5:38 pm on Thursday, January 26, 2012
I would have liked to have seen a response to:
* Nearby's request for demographic data about how we're going to "run low on taxpayers".
* How you made generally hypocritical statements about the county being inept at delivering services while claiming they deliver "excellent" public schools.
* How you misrepresented the study in the very article you cited and ignored why these policies were recommended.
Daniel Grossberg
5:49 pm on Tuesday, February 7, 2012
See my latest column on the Bag Tax:
http://northpotomac.patch.com/blog_posts/litter-control-who-are-we-kidding#comments_list