January 25, 2024 (Downingtown, PA)—Chester County is apparently one of the best counties in the state in which to raise a family. However, whether you call it affordable, attainable, or workforce development, today in Chester County…and nationwide…there are few options for the first-time home buyer, or renter, to begin raising a family. The median-priced home in Chester County sold in the fourth quarter 2023 for $492,000, while the average-priced home was more than $77,000 more expensive at $569,644. In addition, the number of homes for sale declined 37.2% over one year ago. In an 11/22/2023 article, the Wall Street Journal observed that home affordability is at the worst level for buyers since at least 1985, because sales prices have reached new peaks and mortgage rates are hovering near a two-decade high.
For 35 years, the Housing Partnership of Chester County has provided the tools, resources, and education to help build strong, stable communities in Chester County. From no-interest loans to grants to financial literacy programs, our experienced staff—including two HUD-certified counselors—are here to guide homebuyers and homeowners on a path to acquiring and maintaining a safe, comfortable home.
Owning a home often feels like a lofty, long-term goal for income-constrained Chester County residents. Limited inventory of homes affordably priced in Chester County; saving for a down payment with the ever-increasing cost-of-living expenses; rising interest rates; and lack of familiarity with the process create barriers that often feel insurmountable. For the lucky few who do own a home, maintaining that home to provide a safe, accessible, and comfortable living environment is a challenge due to high repair and maintenance costs. But you are not alone. The Housing Partnership of Chester County is a trusted partner with the knowledge and resources to make owning and maintaining your home a permanent reality.
The Housing Partnership of Chester County conducts its First-Time Home Buyer program with the goal of placing clients into Chester County homes for roughly $200,000 in this marketplace. HUD guidelines indicate that the household income for such a home should be $60,000. For comparison, the median household income in Chester County tops $110,000. With a 20% downpayment of $40,000, the prospective first-time home buyer needs a mortgage of $160,000. Two years ago, the mortgage rate was at 3.375%. Today, it neared 8%. That jump means that the monthly payment to finance this purchase leaped from $707 to $1,174, an annual increase of $5,640. How many wage earners at $60,000 saw their salaries increase by 9.3% over two years!
Similar changes are happening nationally. Why? There are several factors, as a recent article (11/6/2023) in Bloomberg Businessweek identifies:
- Homeowners are unwilling to let go of cheap mortgages they received when rates were scraping bottom—now known as the “lock-in effect.”
- A stubbornly strong economy threatens to keep mortgages expensive for years!
- Homebuilders are grappling with limited supplies of labor, land, and materials.
- The US housing market shutdown briefly in 2020—along with the rest of the economy—before a combination of stimulus payments and plunging borrowing costs set off a new construction housing boom unlike anything seen in a generation.
- Many believe that a “normal, healthy housing market will not happen until 2028!
One approach to address this affordability dilemma is what the Housing Partnership recently accomplished. The agency purchased an affordable home in Coatesville for an all-cash offer at $176,000 with no inspection, then rehabbed the property to make it safe and secure at a reasonable price for one of its First-Time Home Buyer clients. This nonprofit is now seeking other such properties in the County where it can replicate this success story.
A vibrant community should allow every Chester County resident access to a safe, comfortable home that is affordably priced. While the Housing Partnership of Chester County has the programs in place to assist income-constrained Chester County individuals and families with navigating the process of owning and maintaining their homes, building a collaborative network of community resources and organizations to help advance the Housing Partnership of Chester County’s mission in a tangible way is a key component to the organization’s success. Together, we can build stronger communities . . . one home at a time as was just done in Coatesville!
For more information about the Housing Partnership and its programs, please visit their website at www.housingpartnershipcc.com or call them at (610) 518-1522.
The Housing Partnership of Chester County is a 501 (c)(3) non-profit corporation established in 1988 and headquartered in Downingtown, PA. Its mission is to improve the quality of life for low-to-moderate income people of Chester County by providing the tools to secure and maintain decent affordable housing. Over the past 35 years, HPCC has coordinated over 400 first-time homebuyers’ settlements, representing more than $3 million in financial assistance, and completed over $5.6 million in repairs for homeowners in Chester County. HPCC also provides free financial literacy programs for all ages.
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