Developers’ emphasis on building apartments instead of condos in Arlington is proving a challenge for efforts to expand local homeownership opportunities.
County Board member Maureen Coffey lamented the lack of new condominium stock, particularly in more affordable price ranges, during a discussion of the situation at the Jan. 16 Housing Commission meeting.
Coffey acknowledged it is simply easier and more financially viable at the moment for developers to build rental housing and get it occupied right away.
“The economic incentives right now … make it really hard,” Coffey said of building condominium units rather than apartments.
The Board member suggested that county leaders should sit down with stakeholders to assess the situation.
“One thing I would like to do is get a group of developers and financiers and people from the community together to talk about what has to give to get those [additional] condo units,” she said. “We need to figure out what gets us there.”
Condominiums typically have been seen as one way for individuals to buy into the Arlington real-estate market, build equity and ultimately trade up.
But as in other segments of the local market, prices have moved higher — putting the dream of real-estate ownership out of reach for many.
The average sales price of the 69 condominium units that sold in Arlington in December was $466,690, according to the Bright MLS multiple-listing service.
That’s less than one-third the $1.6 million average sales price of single-family homes, but would still require a six-figure family income to afford under typical lending guidelines.
The sales price and recently increased cost of financing is only part of the cost involved in condominium ownership.
Many Arlington condominiums have pricey monthly fees — frequently above $500, some above $1,000 — and unit owners also are responsible for occasional special assessments to cover one-time repairs or other unanticipated condo-association costs.
Though not mentioned by Coffey, condo owners also have to dig deep to pay county property taxes, which average more than $4,800 annually for a mid-priced unit.
Housing Commission chair Kellen MacBeth wasn’t against convening a meeting to discuss this issue raised by Coffey. But he said the county government needed to do a better job in promoting the supports it currently offers those seeking to buy into the local market.
“One of my frustrations with the county has been the lack of marketing,” MacBeth said, pointing to “all of the services we offer that people don’t know exist.”
MacBeth placed a finger of blame on county housing staff, who he believes are reluctant to promote housing-assistance programs because it might increase the number of people applying.
“I’d rather be flooded [with applicants],” MacBeth said. Currently, “so many people have no idea” what services are available, he said.
Coffey, who serves as the County Board’s liaison to the Housing Commission, acknowledged MacBeth’s concerns.
“We don’t do the best job of getting the message out,” she said. “Broadening that is an important goal.”
