Tampa Still Needs Affordable Housing: Hidden Costs of Buying Later

Published by Lance Mohr | Filed under Home Buying Tips

Although the cost of buying a single family home or condo in Tampa has dropped in the past 24 months, there are likely to be many hidden fees and other factors that will eventually drive the cost of buying a home back up in the not so distant future.  In fact, the government itself might be on the main culprits when it comes to the lack of affordable housing in Tampa and statewide throughout Florida.

“Hidden” fees, assessments and taxes come in many forms when dealing with real estate. Common examples include building permits, zoning regulations, impact fees, development fees, long lead times, density requirements, infill restrictions and a host of other legislative guidelines.

Consider this, research conducted by the University of Washington found the average home in Seattle Washington cost nearly $200,000 more due to legislative and other governmental requirements! Between 1980 and 2006 the cost of a home in Seattle went from $221,000 to $447,000…of which $200,000 was due to growth restrictions, impact fees, zoning regulations and development requirements.

As federal, state and local governments clamor to find new ways to meet growing budget deficits, it is likely future home buyers in Tampa and the surrounding area will encounter escalating prices. Around the nation these same “hidden taxes” in the form of fees, assessments and other costs are driving up the price of new homes even while the actual sales price of existing homes continue to decline.

According to the Regulatory Barriers Clearinghouse, Florida has the following urgent requirements in order to reign in escalating cost of home ownership due to government fees:

1. Reduce the lead time and complexity related to approving permits, work and the building process.

2. Provide fee waivers and long term payment options to decrease the cost of building new homes.

3. Revise zoning requirements and land-use restrictions to allow homes to be built on smaller lot sizes while allowing greater density.

4. Provide for mandatory in-fill policies and review set-back requirements to encourage better utilization of existing spaces.

5. Allow mixed-use zoning in marginal areas to encourage work-home opportunities that result in less commute time and flexible living/work arrangements.

Potential Tampa home-buyers will recognize the need for state and local governments to raise funds is likely to result in higher – not lower – long term assessments and taxes when building or renovating a home or condo. One sure fire way to make sure your home or property remains affordable is to invest now, while prices are at their lowest level in years – and then lock-in the long term benefits of homeownership before changes set in.

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