COUNCIL BLUFFS, Iowa. (KMTV) — The United States is facing a growing affordable housing crisis and the impact is felt locally.
Iowa Congresswoman Cindy Axne is voting for a federal funding bill that would give more than $900,000 to expand options in Council Bluffs. That money will go to the redevelopment of a site on 21st Avenue and South 6th Street.
It will convert into 80 apartments in two phases, the first being called Spin Lofts.
"These units at this location, Spin Lofts will be up to 60% of the median income," said City of Council Bluffs Chief of Staff Brandon Garrett.
It will be a four-story building with an elevator and 50 apartment units with one, two and four bedrooms for families. Garrett promises something special.
"The inclusion of four-bedroom units, and the reason I bring that up, that makes it more accessible and accommodating to families. It is especially difficult for families to find affordable housing in this metro," Garrett said.
Why is it so difficult?
"It was COVID a little bit, with inflation. We saw inflation from 7-to 20%. Still, we are seeing today. Also, the baby boomers are living longer. That second-largest generation are starting families so that's also creating a squeeze on the market," said 712 Initiative CEO Sheryl Garst.
"A few years ago, the entry home in this community was $100-to-$125,000. (That) would buy you a three-bedroom, one-bathroom, thousand square ft. home with a one-car garage. Today, that home's gonna cost you $175,000 to $200,000 dollars," said Mark Hanwright, a partner with Heartland Properties.
What's being done? The 712 Initiative is collaborating with private philanthropists and the State of Iowa on a $6 million project called The Cohen Building for more affordable units. The organization also revitalizes dilapidated single-family homes.
Still, experts believe this is a workforce town with a lack of workforce housing.
"In the last three weeks, there were 66 homes listed for sale in our community. Forty-seven of those sold in five days or less. We're seeing homes with 15 to 20 offers being submitted and so those buyers competing for entry-level homes are against some tough competition," Hanwright said.
"Our housing stock is not growing fast enough to keep up with the growth of people relocating here," Garst said.
According to Housing and Urban Development, it costs $930 to rent a two-bedroom unit in the Omaha-Council Bluffs metro. Twenty-five percent of households in the area cannot afford that rent.
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