Understanding the Housing Market: Buying vs. Renting in Calhoun County, AL

Navigating the Housing Dilemma: Understanding the Dynamics of Calhoun County’s Real Estate Market

The housing market in Calhoun County, AL, has become a focal point of concern for residents grappling with the decision to buy or rent amidst skyrocketing prices. In a recent conversation with Dana, an expert in real estate trends, Oxford AL News delved into the intricacies of this dilemma.

Meeting Demand Amidst Supply Challenges: Analyzing the Surge in Home Prices and Construction Efforts in Calhoun County

Dana highlighted the significant increase in average home prices in Calhoun County, which includes Oxford, Viston, Jacksonville, Weaver, Alexandria, and White Plains. From January to December 2023, the average home price surged to nearly $197,000, marking a substantial 6.21% increase compared to the previous year. This surge, Dana explained, is primarily fueled by a soaring demand for housing coupled with a lag in supply. The growth in construction endeavors aims to address this demand-supply imbalance, but it’s struggling to keep pace.

The Affordability Struggle: Examining the Gap Between Incomes and Housing Costs in Calhoun County

As housing prices escalate, they pose a considerable burden on residents, particularly in terms of affordability. Dana emphasized the disparity between median household incomes and the suggested expenditure on housing. With the median income in Calhoun County hovering around $54,339 per year, the recommended spending on housing should not exceed $1,350 per month. However, the reality paints a starkly different picture, with average housing costs far surpassing this threshold. The strain is palpable, with individuals and families grappling to make ends meet amidst rising expenses.

Challenges in Oxford: Exploring the Persistent Housing Affordability Crisis Despite Higher Incomes

In Oxford, where the median household income is relatively higher at $62,200 per year, the housing affordability crisis persists. Despite a higher income bracket, residents face a similar predicament, with housing expenses consuming a significant portion of their earnings. With the average purchase price in Oxford exceeding $670 per month for loan payments alone, the strain on household budgets is evident.

Navigating the Rental Landscape: Assessing the Pros and Cons of Renting in Calhoun County

The rental market, albeit offering a seemingly more affordable alternative, presents its own set of challenges. In Calhoun County, the average rent stands at $985 per month, with additional utilities pushing monthly expenses to a minimum of $1,200. However, availability remains a concern, with a scarcity of rental properties exacerbating the housing crunch.

Towards Sustainable Solutions: Balancing Interests for Accessible and Affordable Housing in the Community

Addressing this pressing issue requires a multifaceted approach that balances the interests of homeowners, builders, and residents. While sustaining a buoyant housing market is crucial for economic growth, efforts must be made to ensure that housing remains accessible and affordable for all. Finding innovative solutions that promote sustainable development while mitigating financial strain on residents is imperative in fostering a thriving community.

Fostering Collaboration: Engaging Stakeholders in Discussions on Housing Affordability

As discussions surrounding housing affordability continue, it becomes evident that collaborative efforts and informed decision-making are essential in charting a path forward. By fostering dialogue and exploring viable solutions, communities can strive towards creating a more equitable and inclusive housing landscape.

Charting a Path Forward: Addressing Challenges to Realize an Equitable Housing Landscape in Calhoun County

In conclusion, the housing market in Calhoun County, AL, stands at a crossroads, with the choices made today shaping the future of generations to come. As stakeholders weigh the pros and cons of buying versus renting, the need for proactive measures to address affordability concerns has never been more pressing. Through concerted action and shared responsibility, communities can aspire to realize the vision of housing that is not just a commodity but a fundamental right for all.

Transcription of Interview:

Oxford AL News: Good afternoon Miss Dana, how are you doing today?

Dana: I’m fine thank you, and you.

Oxford AL News: I’m doing well, thanks. We talked a couple of days ago about a really interesting topic about County Housing, um, basically buying a house versus renting a house, and some other interesting topics to go along with this area. So, I’d like to invite you today to talk about that, alright?

Dana: Alright. Well, this is just one interest that I have, and that’s trying to keep up with what people are paying for housing, whether they’re buying a house or whether they’re renting a house and how they’re affected by their income.

Oxford AL News: Alright, so in 2023 from January to December, the average home price in Cen County was just under $197,000. That is an increase of 6.21% over the same time period in 2022, and that’s all of Cen County, so that includes Oxford, Viston, Jacksonville, Weaver, Alexandria, White Plains, all of those. And that’s a big jump. What do you think is contributing into that?

Dana: Well, the demand has been greater than the supply has been, and there’s a huge growth in construction as well to keep up with that demand. So people had the ability to purchase because of the mortgage rates, and they took advantage of it. Sellers took advantage of the fact that people were willing to buy, so those prices kept going up and going up. Really can see like something that would typically be a small starter home, rather than costing around $120,000 to $140,000, has gone up over $200,000. Wow, for a starter home. And those are newer, those are not the older resales, but that has been an increase. Investors have been able to purchase lower-priced homes as well and then they’re able to fix them up and resell them at a higher price or rent them for a higher amount because they’ve been renovated, regardless of how much they put into it.

Oxford AL News: Alright, so how does that affect people?

Dana: Well, it affects them in their pocketbooks, because if you look at Calhoun County, the median income for the household is $54,339 a year. The per capita income is $28,227. So, if you just have one person at $54,000, that’s $26 an hour. If you have a two-income household, still only totals $26 an hour. So, maybe somebody makes $15 and somebody makes $11 an hour, right? The per capita income at $28,000 is $13.50 an hour, so somebody in a single-family or a single-parent household or single-income household making $13.50 an hour, yeah, they’re lucky. So, if that median household income is $4,500 monthly, it’s suggested that you pay 30% towards housing. That’s 30%, that includes a mortgage, but if you have a mortgage, you’ve also got to pay property taxes and you’ve got to pay insurance, and it also includes your utilities. And that’s another big thing going around right now is the cost of electricity.

Oxford AL News: So, what’s the suggested amount you should be paying on housing?

Dana: If you’ve got your median income of $4,500 a month, that’s not including taking out taxes, that’s your gross income. The most you can spend on housing should be $1,350 a month.

Oxford AL News: Wow, that’s a lot less than what we’re seeing in the market.

Dana: Exactly, and that’s where the issue lies.
Oxford AL News: Right, so if you’ve got an average purchase price in 2023 of $196,750 for a house, that’s a $1,390 a month loan payment. Then add your property taxes, insurance, and utilities, and you’re probably getting a house payment that you pay to the bank around $1,800 to $1,900 a month. Then add your utilities, and you’re over $2,100 at a minimum. Now, what did I say that the average or median income is that you need to pay on and what you need to pay on housing? $2,100 is what you would be paying, buying an average-priced house. $1,350 is what you should be paying. So, you’re looking at about an $800 difference.

Dana: That’s a big difference, too. That’s $800 you can’t pay on groceries, you can’t pay on gas, you can’t pay on going out with your kids or car payments on top.

Oxford AL News: Exactly, so that hits you pretty hard when the housing prices go up and your salaries are not going up to meet it. Now, I mean, granted, some people are not paying $196,000 for a house, some people are paying a lot less for a lot smaller and a lot worse condition, but that’s the average and that’s in the county.

Dana: Right, now if you look at that rent in Calhoun County, the average rent based on those listings is $985 a month. Add utilities and monthly expenses become a minimum of $1,200. That’s a little more doable, but guess what’s hard to find in Calhoun County? A rental. There’s just not as much to rent.

Oxford AL News: Right, and it’s very hard to come by. So, if you look at Oxford, Oxford has a median household income of $62,200 a year. So, if you’ve got a two-income household, you’re making a total of $30 an hour. However, it works, the person’s in Oxford it’s 12.6%. That’s significant, but not as significant as in Calhoun County, which is 18.5%. A median household income in Oxford would be $5,185 a month. So, the suggested spending on housing is $1,555. And we talked about the average payment in Calhoun County comes up to around $2,100, but the average purchase price in Oxford, because it’s higher, is around $670 a month for your loan payment, plus insurance and property taxes. So, you’re looking at over $2,200. Then you add utilities and that’s about $2,500. So, $2,500 per month on housing is 48% of the gross median income in Oxford. That’s a lot more than 30%.

Dana: That’s a lot. But it’s very good information to know, and I do appreciate you taking the time to come in and talk with us about this today because this is really an interesting topic, renting versus buying. And the thing is, how do we come up with an answer for that? How do we fix it? You don’t want to take away the income that people are making from selling their houses. You don’t want to take away the income builders are getting from building houses. But how do you make it so that people can afford a place to live and not have to go back home and live with their parents?

Oxford AL News: Very good question. Well, guys, if you enjoyed this article today, be sure to leave a like, comment, follow, or share. We’d love to hear your thoughts. And Dana, thank you for taking the time to come in and talk to us about this today.

Dana: You’re welcome.

Oxford AL News: Thank you so much.

Dana: You’re welcome.