Inflation affects local rents | Business

The fact that inflation has affected virtually every area of ​​daily life is not new to anyone, but in the case of rental housing, it is a troubling prospect.

In terms of housing options at the local level, low-income renters, fixed-income tenants, the elderly and others with very limited resources are the hardest hit. Those who own their homes, even with a long-term fixed mortgage, have real estate inflation coverage and are in great shape to weather the housing storm.

Rents are skyrocketing, there is no doubt about it. Upon expiration of leases, rental managers are bound by their fiduciary duty to investors to maximize investor returns, and rightly so.

Having said that, what happens when typical rents in a given community “value” an entire sector of the population? What is the impact on the local workforce when fewer people can find affordable housing and cannot be stable employees? Do potential employers who are considering expansion or new developments in our area take into account the state of the local housing market? Does the U.S. military consider off-facility accommodation options when considering additional missions at Fort Knox? What are we currently doing to solve this problem and what can we do as a community?

According to a local property manager, HUD’s Housing Choice Voucher is a tool that qualified applicants can turn to. The program often referred to as “Section 8”, however, is not as popular as one might expect. The main reason given is the associated administrative burden on government and the fact that the demand for housing is still strong locally.

Most property managers already have a lot of paperwork to deal with, but some have embraced the process and developed a streamlined process for serving these candidates. This effort is to be commended and others are encouraged to consider it.

The Housing Choice Voucher program is a HUD program administered locally by the Kentucky Housing Corporation. According to a HUD fact sheet, the program aims to help very low-income families, the elderly and people with disabilities find suitable housing, whether it is a single-family home, apartment or apartment. ‘a townhouse. A qualified applicant receives a voucher from the program administrator, but must contribute either 30% of the adjusted gross family income or 30% of the gross rent.

Homeowners and potential applicants should call 270-765-2092 for more information.

Another area of ​​concern is the local housing market’s support for junior members of the US military seeking out-of-post housing. While the facility has a large housing inventory, it still relies heavily on off-station housing options to fill the void. Military personnel whose fixed housing allowance is insufficient to qualify for adequate housing are particularly affected. While housing allowances are adjusted from time to time based on local market factors, there is often a lag as the schedule is updated every year.

Locally, the Knox Regional Development Alliance is focusing on this issue.

When asked what the local community can do to help mitigate this, Beth Avey, vice president of the organization, said: Managers, landowners and real estate developers to factor in rates the military base housing allowance (BAH) for our region when determining rental rates.

Another serious consideration at the local level, in terms of housing supply and demand, is the anticipated economic growth in the local economy due to recent announcements of industrial development. Big projects like Nucor in Brandenburg are already underway and growth in Fort Knox is also expected.

While that statement applies almost universally here, Avey continues with an emphasis on taking into account the long-term growth of Fort Knox. She says a major factor the U.S. military would consider when adding missions to Fort Knox is the availability of affordable housing to buy and rent.

In conclusion, at the end of the day, it’s a free market and the people in the real estate businesses are free to follow the market and contribute as they see fit, and luckily that’s how it works. That said, perhaps there is more we can do to maintain a robust real estate market while keeping an eye out for the factors that can really work against us.

Factors like a real estate market that excludes the very people who form the workforce we need to support growth. This is something to consider and the time to collaborate with all parties involved is probably now before a potentially slowdown results.

TW Shortt is the past president of the Heart of Kentucky Association of Realtors and a local real estate broker.

TW Shortt is the past president of the Heart of Kentucky Association of Realtors and a local real estate broker.