>> SOLVING THE CENTRAL OHIO HOUSING CRISIS.

WELCOME TO COLUMBUS ON THE RECORD.

THE SPECIAL.

THIS WEEK, WE WILL TAKE AN IN- DEPTH LOOK AT WHAT ISSUE AFFECTS ALL OF US REGARDLESS OF INCOME, GENDER, RACE OR CLASS, WE ALL NEED A PLACE TO LIVE AND RIGHT NOW, EXPERTS SAY THERE ARE NOT ENOUGH PLACES FOR EVERYONE TO LIVE HERE INSERT THE NOT ENOUGH FOR EVERYONE WHO EXPECTS TO LIVE HERE IN THE FUTURE.

INDICATING CENTRAL OHIO HAS BEEN BUILDING 5000.

HOUSING UNITS ANNUALLY THAN IT NEEDS TO KEEP PACE WITH THE EXPECTED POPULATION GROWTH.

WHEN YOU COMBINE GROWING DEMAND WITH A SHORTAGE OF SUPPLY, OF COURSE, THE PRICE RISES.

THE MEDIAN PRICE STANDS AT $375,000, NEARLY DOUBLE WHAT IT WAS SEVEN YEARS AGO.

GORDON, YOU ARE A REALTOR, WHAT IS THE CURRENT STATUS OF THE MARKET HERE IN CENTRAL OHIO?

HOW WOULD YOU DESCRIBE IT?

>> THANK YOU FOR HAVING ME, MIKE.

IT IS DIFFERENT.

WE JUST WENT THROUGH A PANDEMIC THAT REALLY TURNED THE REAL ESTATE MARKET ON ITS HEAD.

WE ARE STARTING TO GET BACK TO NORMS AS FAR AS WE HAVE INVENTORY CLIMBING, FINALLY.

WE HAVE BEEN AN EXTREME SHORTAGE.

JUST TWO YEARS AGO, WE HAD ONE MONTHS WORTH OF INVENTORY AND WE JUST HIT TWO MONTHS OF INVENTORY RECENTLY FOR THE FIRST TIME IN QUITE A WHILE.

>> GOING BACK TO 2007 -- 2008, 2009, WE HAD THE FORECLOSURE CRISIS.

AND THEN WE HAD THE PANDEMIC, ARE THEY COMBINING TO MAKE THE SITUATION WORSE?

>> INTERESTING TO ATTACH THE TWO.

THE FORECLOSURE CRISIS CREATED AN ISSUE WITH THE REAL ESTATE INVENTORY.

WE WERE AT A POINT WHERE NEARLY HALF OF THE INVENTORY WAS TROUBLED INVENTORY WHETHER PEOPLE HAD NOT MADE THEIR PAYMENTS OR WAS IN FORECLOSURE.

MORE IMPORTANTLY, WHAT IT CREATED WAS ON THE NEW CONSTRUCTION SIDE OF THINGS BETWEEN 2007 AND 2015, 5 MILLION HOMES DID NOT GET BUILT IN THE UNITED STATES.

TO GIVE YOU AN IDEA OF WHAT THAT IS, IN 2024, WE EXPECT A LITTLE LESS THAN 4 MILLION HOME SALES IN THE UNITED STATES.

SO OVER ONE YEAR'S WORTH OF SALES NEVER GOT BUILT.

AND THE POPULATION KEPT GROWING AND CERTAINLY HERE IN CENTRAL OHIO, THE JOB GROWTH HAS CREATED AN INCREASE OF PEOPLE, HERE.

SO THAT CREATED THE SHORTAGE.

>> SHORTAGE MEANS AFFORDABILITY, CHALLENGE, ESPECIALLY FOR YOUNGER, FIRST-TIME HOMEBUYERS.

>> FOR EVERYBODY, HONESTLY.

WHEN WE TALK ABOUT AFFORDABILITY, YOU ARE PAYING LESS THAN ONE THIRD OF YOUR INCOME FOR HOUSING.

AND RIGHT NOW, IN CENTRAL OHIO, WE HAVE 52 THOUSAND PAID HALF.

WE CALL THAT THE TOXIC TRADE- OFF RANGE AND WHAT IT MEANS IS TO MAKE YOUR HOUSING PAYMENT, YOU ARE SACRIFICING SOMETHING THAT YOU NEED TO SURVIVE.

USUALLY IT IS FOOD AND OFTEN, IT IS MEDICINE.

THAT IS 2000 PEOPLE IN OUR COMMUNITY ACROSS THE SPECTRUM.

>> WHO IS BUYING THESE HOUSES AND WHERE ARE THESE PEOPLE COMING FROM?

>> WE HAVE HAD SUCH AN EXPLOSION AT SOME OF THAT IS NATURAL GROWTH COMING INTO THE MARKETPLACE BUT WE ALSO HAVE COMMUNITY ETHICS LIKE THE UNIVERSITY, LIKE THE CAPITOL OF OUR STATE, STRONG FINANCIAL PARTNERS LIKE CHASE AND HUNTINGTON.

WE HAVE TREMENDOUS EMPLOYMENT AND ECONOMIC ENGINE DRIVING CENTRAL OHIO WHICH IS ATTRACTING PEOPLE TO COME HERE AND AS WE WERE SAYING, DURING THE PANDEMIC, A LOT OF PEOPLE WERE MOVING SO WE WERE A MARKET ALSO ATTRACTED TO THOSE MOVING IN FROM THE OTHER MARKET THAT HAVE HISTORICALLY EXPERIENCED HIGHER HOUSING COSTS.

ONE OF OUR MOST ATTRACTIVE FACTORS WAS OUR AFFORDABILITY AND WE HAVE LOST THAT SO AS WE SAW THOSE PRESSURES AS NICK WAS DESCRIBING, NOT ONLY WAS THAT A DRIZZLE RATION THAT DID NOT GET BUT BUILDINGS NO LONGER IN BUSINESS.

THE INFRASTRUCTURE OF THE HOUSING CONTINUUM WAS REALLY DAMAGED DURING THAT CRISIS AND WE MAYBE DID NOT SEE HOW MUCH OF AN IMPACT IT WAS GOING TO HAVE LATER.

>> ARE THE COMMUNITIES OF CENTRAL OHIO THE SAME OR IS THERE A SHORTAGE OF AFFORDABILITY ISSUE MORE THAN OTHERS?

>> THEY ARE ALL DIFFERENT, QUITE FRANKLY.

EVEN NEIGHBORHOODS WITHIN THE LARGE METROPOLITAN AREA OF COLUMBUS ARE DIFFERENT.

THE SUBURBS AND A LOT OF THAT HAS TO DO WITH SCHOOLS, HAS TO DO WITH TAXES, PROPERTY TAXES AND SO ON AND SO FORTH BUT THAT CREATES THE DIFFERENCES AND WE DEFINITELY HAVE THOSE.

>> I WOULD SAY IF THERE IS A SIMILARITY, IT IS THAT NO ONE IS FREE FROM THIS AND IT IS AFFECTING EVERY SINGLE COMMUNITY.

THEY ALL HAD THE SAME KINDS OF CHALLENGES AS TO HOW THEY ARE RESPONDING TO THEM IS WHERE WE SEE THE BIGGEST DIFFERENCE.

>> HOW CAN AFFORDABILITY IS AFFORDABILITY BUT HOW IS THE ISSUE AFFECTING SOMEONE IN THE HOME AND MAYBE HAS BEEN IN THE HOME FOR 10 YEARS VERSUS SOMEONE WHO IS JUST TRYING TO START THEIR HOMEBUYING LIFE?

>> ONE OF THE TRENDS THEY ARE WATCHING IS A REALLY BIG PRESSURE POINT RIGHT NOW IS PROPERTY TAXES AND WHEN WE SAY THAT PRICES ARE GOING UP ACROSS THE BOARD, YOUR RENT IS GOING UP LIKE CRAZY, MORTGAGE RATES ARE GOING UP AND EVEN IF YOU OWN YOUR HOME, YOU ARE FEELING IT ON THE BACKEND, YOUR PROPERTY TAXES BECAUSE ALL OF THIS IS A FUNCTION OF SUPPLY AND DEMAND AND WHEN WE DON'T HAVE ENOUGH HOMES, THE RATES STAY VERY HIGH.

>> ESPECIALLY IF YOU ARE A RETIREE.

>> IF YOU ARE LOOKING AT WHERE IT IS HITTING HARDEST, IT IS IN THE OLDER INDIVIDUALS OVER 65 ON THOSE FIXED INCOMES THAT CANNOT CONTROL BRINGING IN MORE INCOME TO PAY THAT RENT OR THE ADDITIONAL PROPERTY TAXES AND INSURANCE EXPENSES AND REPAIRS SO ALL OF THOSE THINGS ARE PRESSING HARD.

I WOULD ALSO SAY THAT SPONSORS SUPPORT, YOUNGER PEOPLE ARE FEELING IT MORE EXTREMELY SO A RECENT ARTICLE ON THE AGE GAP WITH FIRST-TIME HOMEBUYERS THAT PEOPLE ARE GETTING OLDER AND OLDER IN THAT FIRST-TIME HOME PURCHASE AND UNDER 25, YOU ARE NOT ABLE TO WITH THIS CURRENT ENVIRONMENT.

>> LET'S TAKE A LOOK AT WHY SO MANY HOMES ARE UNAFFORDABLE FOR SO MANY PEOPLE IN CENTRAL OHIO.

WE MENTIONED HOME PRICES HAVE NEARLY DOUBLED.

THEY HAVE INCREASED 87%, TO BE EXACT.

WAGES HAVE INCREASED BY 30% OVER THAT SAME PERIOD ACCORDING TO THE FEDERAL RESERVE.

87 IS BIGGER THAN 30.

A 30% WAGE INCREASE OVER SEVEN YEARS IS NOT BAD.

THAT 87% OVER IS JUST MIND BLOWING.

>> JUST TO AFFORD A MODEST TWO BEDROOM APARTMENT, NOT CREDIT COUNTERTOPS BUT WALLS AND A ROOF, YOU HAVE TO EARN $22 AN HOUR RIGHT NOW AND THAT IS THE EQUIVALENT OF 55,000 A YEAR FOR EACH FAMILY.

I USED TO THINK THAT WOULD BE GREAT NOW IT IS A STRUGGLE.

I THINK ONE OF THE THINGS WE HAVE TO BE CONSCIOUS OF, THERE ARE REALLY ONLY FIVE VARIABLES LIKE HOW MUCH THE HOUSE IS GOING TO COST, LUMBER, LABOR, LAND, LOANS AND WALLS AND ANY TIME YOU WANT TO BRING THE HOUSING PRICES DOWN, YOU ARE PLAYING WITH THOSE FIVE VARIABLES AND RIGHT NOW, ALMOST EVERYONE HAS BEEN GOING IN THE WRONG DIRECTION.

>> WE TALKED ABOUT HOW WE DID NOT BUILD THOSE HOMES DURING THE CRISIS BUT THAT HAS BEEN ALMOST 8 YEARS, NOW.

WHY HASN'T IT CAUGHT UP?

20 YEARS AGO, THERE WASN'T A FARM FIELD THAT DIDN'T HAVE A STARTER HOME AND NOW IT IS ALL APARTMENT BUILDINGS.

THIS IS IN THE SAME PRICE POINT.

>> AND THERE IS A LOT TO THAT.

YOU MENTIONED IN THE INTRO, WE ARE STILL 5000 BUILDINGS OR UNITS PER YEAR SHORT OF WHERE WE NEED TO BE.

SO THAT IT COMPILES ON AN ANNUAL BASIS.

THE KARLIE IS EXACTLY RIGHT, YOU HAVE GOT THOSE FIVE ISSUES AND YOU COUPLE THAT WITH WHAT WE CALLED IN BECAUSE HIM WHICH IS NOT IN MY BACKYARD WHICH IS MAKING THE LAND PRICES GO THROUGH THE ROOF WHICH IS MAKING ZONING MORE DIFFICULT AND THE TOWNSHIPS AND THE LOCAL MUNICIPALITIES REQUIRING IN SOME AREAS, THEY ARE REQUIRING ONE UNIT PER ACRE AND IT IS NOT SUSTAINABLE, ABSOLUTELY NOT SUSTAINABLE.

I SAW A STATISTIC.

WE ARE DOING ABOUT 12,000 PERMITS PER YEAR LOCALLY.

BOSTON IS DOING 44,000, FOUR TIMES WHAT WE ARE BUILDING.

>> WHY IS THAT?

THAT IS A STRIKING NUMBER, FOUR TIMES, AUSTIN, TEXAS.

THE STATE CAPITOL, THE UNIVERSITY, A LOT MORE TECH GOING ON.

>> AND A LITTLE BIT WARMER.

A LITTLE BIT WARMER.

AS WE ARE DESCRIBING, THERE ARE COMPONENTS AND ISSUES THAT COME TO A HEAD AND ONE OF THEM IS REGULATORY, YOUR ENTITLEMENT PROCESS.

IT IS GETTING THROUGH ZONING AND MAKING THE LAND AND OUR -- WE ARE MIDWESTERN AND WE HAVE AN AVERSION TO DENSITY AND SOME COMMUNITIES THAT DON'T WANT TO SEE THOSE NEIGHBORHOODS GET A LITTLE BIT TIGHTER, A LITTLE BIT HIGHER ON THAT NEXT APARTMENT BUILDING THAT GOES UP AND YOU ASKED THE QUESTION EARLIER, HOW IS THIS AFFECTING HOMEOWNERS OR PEOPLE ALREADY IN HOUSING?

OR THEM, THEY LOOK AROUND AND LACY TRAINS AND DIGGING AND THEY THINK THERE IS A LOT OF CONSTRUCTION GOING ON AT THAT CONSTRUCTION IS ONLY FITTING A NARROW PART OF THE MARKET, MUCH MORE HIGHER BECAUSE THEY COST MUCH MORE TO DO AND YOU ARE AT A MUCH HIGHER PRICE POINT THAN SPRINTING OR HOMEBUYING IN THIS WHOLE SPECTRUM AND OFTEN, WHEN I'M GOING TO THE MEETINGS AND TALKING TO PEOPLE, IT DID NOT BECOME REAL TO THEM UNTIL THEY DECIDED THAT THEIR SON OR DAUGHTER COULD NOT MOVE HOME.

SO IF YOU ARE NOT LIVING OR GOING THROUGH THIS PROCESS, YOU MAY NOT REALIZE HOW MUCH THE MARKET HAS CHANGED AND BEING ABLE TO DO THINGS LIKE THE CITY OF COLUMBUS HAS DONE, MANY CITIES ARE LOOKING AT ZONING AND LOOKING AT TWO --INTO WHETHER THEY WANT TO INCLUDE THE COMMUNITY AND PRICE POINTS.

>> IS THIS JUST THE COST OF PROGRESS?

BOSTON, NEW YORK, WASHINGTON DC, SAN FRANCISCO AND L. A.

HAVE HAD HOUSING ISSUES FOR DECADES.

AND NOW THAT THE CITY IS GROWING AND ATTRACTING MORE PEOPLE, IS THIS WHAT HAPPENS ECONOMICALLY?

>> I THINK THE OFTEN EXAMPLE IS REALLY GREAT BECAUSE WE ARE STANDING PHYSICALLY WHERE THEY WERE 50 YEARS AGO AND THEY WERE SAYING THE SAME THING, "IT IS TRANSITIONAL.

WE WILL CATCH UP. "

IT WASN'T UNTIL $100,000 A YEAR THAT I COULD NOT AFFORD ANYTHING BUT SUDDENLY, IT GOT REALLY QUIET BECAUSE IT IS ONE THING TO SAY THAT I DO NOT WANT TO LIVE NEXT DOOR TO A DUPLEX AND IT IS ANOTHER THING TO SAY I DO NOT WANT TO LIVE NEXT DOOR TO A DUPLEX BUT I AM WILLING TO PAY $400 OR $500 MORE IN PROPERTY TAXES TO HAVE THAT RIGHT.

WHEN DO YOU START TO FEEL THE PINCH?

>> THIS IS A CHANCE TO AVOID THE MISTAKE IN SAN FRANCISCO AND THE BAY AREA.

>> I HAVE TO TAKE MY HAT OFF TO THE CITY OF COLUMBUS.

I THINK THEY HAVE REALLY GONE AFTER IT THIS YEAR IN 2024 WITH THE ZONE IN POLICY, REZONING ALONG THE BUS LINES AND THEY ARE NOT THE END OF THE RECENT PASSING OF THE DAKOTA ISSUE, IT IS NOT JUST ABOUT BUSES, NOT JUST ABOUT ADDING BUSES BUT ADDING SIDEWALKS AND TRAILS AND BIKE PATHS.

AS WE GROW ALONG THESE CORRIDORS, PEOPLE CAN GET FROM POINT A TO POINT B EASILY.

>> THE WORRY IS THERE WILL BE A LOT OF PARKING ON THE SIDE STREETS AND ITALIAN VILLAGE BUT IS THAT ALSO THE PRICE OF PROGRESS?

>> I THINK ONE OF THE THINGS WE ARE LEARNING IS THIS EVOLUTION OF CONSUMER TASTE AND PREFERENCE.

YES, WE HAVE A VERY STAID IDEA ABOUT HOW MUCH PARKING WE NEED, HOW MANY CARS PEOPLE HAVE AND MANY OF THE HOUSEHOLDS WE SERVE DON'T HAVE MULTIPLE CARS AND IF WE BUILD IT ON CLEVELAND AVENUE OR WEST BROAD STREET, THEN THEY HAVE THE LUXURY OF NOT HAVING TO HAVE A VEHICLE AND I THINK THAT IS ONE OF THE THINGS YOU TALK ABOUT, THAT WE SHOULD BE EVOLVING OUR REGULATORY ENVIRONMENT TO ACCOMMODATE MULTIPLE TRANSPORTATION MODES AND NOT STUCK IN HIS IDEA THAT EVERY HOUSEHOLD WILL HAVE TWO CARS AND WE WILL MAKE SURE THAT THEY HAVE LOTS OF PARKING.

MY DAD RETIRED FROM GM AND I DO LOVE A GOOD CAR BUT I DO KNOW A LOT OF MY FRIENDS WHO ARE NOT INTERESTED IN THAT SO DO WE WANT MORE PARKING OR DO WE WANT MORE HOUSING AND THAT IS WHAT WE HAVE TO BE WILLING TO SAY.

WE WANT MORE HOUSING FOR PEOPLE >> I THINK THAT IS THE BIG POINT.

NO ONE IS SAYING GET RIGHT OF THE CAR.

IT IS OHIO AND IT IS CALLED AND WE ARE KEEPING OUR CARS BUT I AM NOT DOING DROP OFF EVERY DAY THE SAME THING WITH THE GROCERY STORE, IT IS ABOUT EXERCISING THESE CHOICES SO THAT WE CAN DRIVE WHEN WE WANT TO AND NOT WHEN WE DON'T.

>> IN THE PAST, WE HAVE SOLVED OUR HOUSING PROBLEM BY JUST BUILDING OUT.

FINDING CHEAPER LAND EVEN FURTHER AND FURTHER OUTSIDE OF THE OUTER BELT.

I HAVE SEEN A LOT OF CONSTRUCTION IN SOUTHEASTERN FRANKLIN COUNTY THAT WAY?

>> MIKE, IN RECENT HISTORY, THE PAST 30 OR 40 YEARS, SPRAWL HAS BEEN THE SOLUTION.

WE NEED 10 SOLUTIONS.

WE DON'T JUST NEED TWO.

WE DON'T JUST NEED THREE P WE NEED TO ATTACK THIS AT ALL ANGLES BECAUSE IT IS THAT BIG OF A PROBLEM, THAT BIG OF AN ISSUE FOR CENTRAL OHIO.

>> I THINK WE WANT TO MAINTAIN THE THINGS WE LOVE ABOUT CENTRAL OHIO AND DRIVING 20 MINUTES, 30 MINUTES TO GET SOMEWHERE IS IMPORTANT TO US.

WE DON'T WANT THAT TO BECOME AN HOUR.

THAT IS AN HOUR THAT YOU COULD HAVE SPENT WITH YOUR FAMILY.

SPECIFICALLY, YOU ARE NOT DOING THINGS TO IMPROVE YOURSELF, EITHER.

I THINK WE WANT TO MAINTAIN THOSE THINGS WHICH ARE ACCESSIBILITY, ALSO.

>> CORPORATE HOMEBUYING, HOW MUCH OF A FACTOR IS THAT IN THIS SITUATION WITH AFFORDABILITY OF HOUSING?

>> IT IS A BIG FACTOR AND ONE OF THE THINGS WE NEED TO CONSIDER.

ONE OF THE REASONS WE HAVE INVESTMENT ACTIVITY IS BECAUSE THERE IS A RETURN THAT INVESTORS CAN GET IN THIS MARKET.

IF WE CAN GET ROLE, SUPPLY AND IT COOLS THAT PRESSURE DOWN AND WE DON'T SEE THAT SO I THINK PART OF THAT SUPPLY AND PART OF THE EQUATION IS, IF WE GET MORE HOUSING, WE WILL BE SO ATTRACTIVE TO THOSE OUTSIDE PRESSURES.

>> DOES GOVERNMENT HAVE A ROLE IN CORPORATE BUYING?

>> I THINK ONE OF THE THINGS THAT WE CAN FOCUS ON FIRST WHERE WE HAVE A LOT OF AGREEMENT IS NOT NECESSARILY WHO BUT HOW ARE THEY BEHAVING ONCE THEY HAVE THAT PIECE OF PROPERTY.

ARE THEY GOOD NEIGHBORS?

ARE THEY MAINTAINING IT AND KEEPING IT?

IF NOT, THAT IS CODE ENFORCEMENT.

ARE THEY RESPECTING THE TENANTS AND IF NOT, THAT IS A PLACE WHERE CIVIL LITIGATION IS APPROPRIATE.

I THINK IF WE FOCUS ON THE BAD ACTORS AND THOSE ABUSING THE SYSTEM, SUPPLY AND DEMAND WHICH MAKES THAT LESS APPEALING, I THINK THIS IS MORE OF A SYMPTOM OF A HOUSING CRISIS RATHER THAN AN INSTIGATOR OF ITS.

>> HOW IS THIS PLAYING OUT IN THE REAL ESTATE MARKET?

THEY WANT TO SELL THEIR HOME AND THEY WANT TO SELL IT TO ANOTHER FAMILY WITH TWO LITTLE KIDS BUT THE CORPORATE BUYER HAS CASH AND MORE MONEY AND I HAVE TO PAY FOR MY NEXT HOUSE AND I HAVE TO PAY TO RELOCATE AND I AM GOING TO TAKE THE CORPORATE BUYER.

>> THERE ARE MANY ASPECTS WHEN IT COMES TO CORPORATE INVESTORS AND INSTITUTIONAL INVESTORS.

HOW DO YOU TELL A SELLER THAT THEY CANNOT SELL IT TO SOMEBODY FOR TOP DOLLAR, RIGHT?

AND YOU ARE EXACTLY RIGHT, LEE.

WE NEED TO BUILD OUR WAY OUT OF THIS.

WE NEED MORE UNITS SO IT IS NOT AS ATTRACTIVE.

I SORT OF CHUCKLE AND SAY, I HAVE BEEN MY ENTIRE CAREER, 30 YEAR AND WALL STREET IS PROVING AND THEY LOVE CENTRAL OHIO.

>> WE TALK ABOUT THE COST OF HOUSING AND HOW IT HAS INCREASED BY 87% IN SEVEN YEARS.

WAGES HAVE INCREASED BY 30% BUT WOULDN'T IT BE EASIER TO BUY A HOUSE IF PEOPLE MADE MORE MONEY?

THAT IS A BIGGER PROBLEM BUT WHAT ARE YOUR THOUGHTS ON THAT?

>> IT IS JUST MATH BUT IN SOME WAYS, I AM WONDERING IN TERMS OF REGULATORY OR POLICY FIX, DO WE LOOK AT THINGS THAT CONTINUE TO GET PEOPLE INTO THAT BUYING SPACE?

COMING OUT OF WORLD WAR II, THERE WAS A COMPREHENSIVE G. I.

BILL THAT ALLOWS RETURNING MILITARY TO GET JOBS, GET AN EDUCATION AND BUY A HOME.

DO WE HAVE MORTALS THAT WE BRING OUT LIKE THAT TO SERVE MILLIONS OF PEOPLE WORKING IN THE NONPROFIT SECTOR ARE?

MILLIONS OF PEOPLE WORKING IN THE CHILDCARE SECTOR, MILLIONS OF PEOPLE WORKING IN THE CENTRAL JOBS DURING THE PANDEMIC.

MAYBE THERE ARE TOOLS TO HELP THEM MITIGATE.

IF THEY MAKE MORE MONEY, THEN THEY CAN PARTICIPATE IN THE MARKET IN A DIFFERENT WAY BUT KNOWING WE CANNOT NECESSARILY PULL THAT LEVER, CAN WE PULL ANOTHER LEVER TO HOMEOWNERSHIP?

>> AT THE FEDERAL LEVEL, THEY ARE DISCUSSING WAYS ON HOW TO GET MORE HOUSES ON THE MARKET AND ONE OF THOSE, IF YOU GO OUTSIDE OF CENTRAL OHIO, THE CAPITOL GAINS ABSOLUTION -- EXEMPTION OF 200,000, 500,000 PER MARRIED COUPLE, IT HASN'T CHANGED SINCE 2007.

THE CAPITOL GAIN IS THE PROFIT YOU MAKE ON YOUR HOME.

AFTER YOU SELL IT, THOSE GAINS USED TO BE TAXED, THEY HAVEN'T BEEN SINCE 2007 AT THOSE LEVELS.

IF IT GOES OVER THAT, YOU PAY A CAPITOL GAINS TAX.

WELL, IT HASN'T BEEN CHANGED IN 27 YEARS AND HASN'T BEEN ADJUSTED FOR INFLATION.

ON THE COAST, IF YOU GO TO CALIFORNIA WHERE YOU SEE THOSE TYPES OF NUMBERS, YOU ARE.

SO THEY ARE TRYING TO MAKE SOME SUGGESTIONS FOR CHANGES AND ALSO SUGGESTING THAT IF A LONG TIME HOMEOWNER SELLS THEIR PROPERTY AND THEY HAVE LIVED IN THEIR HOME AND ON THEIR HOME FOR MORE THAN 20 YEARS AND THEY SELL IT TO ANOTHER, THERE IS SOME SORT OF TAX BREAK.

AGAIN, YOU ARE GOING TO TAKE LOTS OF TOOLS TO MAKE THIS HAPPEN.

>> LET'S GET TO THE PHASE OF THE PROGRAM, THIS IS NOT AN EASY PROBLEM TO SOLVE.

MAYBE WE CANNOT SOLVE IT COMPLETELY BUT WE CAN MAKE IT BETTER AND MATCH BETTER INCOMES TO HOUSING SO THAT PEOPLE HAVE THE STABILITY TO LIVE COMFORTABLY AND SAFELY AND BE ABLE TO BUY GROCERIES AND PAY DOCTORS BILLS AND EDUCATE THEIR CHILDREN.

>> GETTING TO THOSE SOLUTIONS IS THE HARD PART.

>> WHICH SIDE IS BETTER POSITIONED TO MAKE PROGRESS, THE GOVERNMENT SIDE OR THE PRIVATE SECTOR SIDE?

>> I DO WITH SAY EQUAL.

THE GOVERNMENT SIDE HAS THE OPPORTUNITY TO INTERVENE IN THE MARKET THAT AFFECTS THE HIGH COST OF THE MARKET RIGHT NOW INCLUDING INTEREST RATES WHICH IS DRIVING A LOT OF COST.

AS I WAS DESCRIBING EARLIER, THAT INTEREST RATE BOTH THAT WE HAVE EXPERIENCED OVER THE PAST FIVE OR SIX YEARS, EVERY PICK UP ON INTEREST RATES, THOUSANDS OF PEOPLE BECAME UNAFFORDABLE TO GO INTO HOMEOWNERSHIP SO I DO THINK THERE IS LEVERAGE THE GOVERNMENT CAN PULL TO INTERVENE IN THOSE MARKET FORCES.

THEY CAN INTERVENE AND WE TALKED ABOUT HIS OWN ENDS AND THAT IS AN INTERVENTION THAT THE GOVERNMENT CAN DO TO BE ABLE TO BRING MORE OPPORTUNITIES FOR DEVELOPMENT TO CERTAIN CORRIDORS AND ALLOW THE DEVELOPERS TO MAXIMIZE THOSE SITES AND GET THAT BETTER RETURN ON INVESTMENTS.

>> TAX ABATEMENT.

THAT WAS JUST STARTING TO BE REBORN.

SHOULD ALL TAX ABATEMENTS BE FOCUSED ON ONE ISSUE AND THAT IS AFFORDABILITY?

>> I KNOW THAT IS HOW COLUMBUS IS SEEING THE PROBLEM AND THAT HIS ORIGINATION.

TAX ABATEMENTS IS TO BE USED TO REVITALIZE AREAS THAT DID NOT HAVE ENOUGH POPULATION OR HAVE ENOUGH GROWTH BUT OUR MARKET IS STABLE AT THIS POINT.

ESPECIALLY IN COLUMBUS.

YOU DON'T NEED TO INCENTIVIZE.

WHAT YOU NEED TO DO IS CONVERT THAT TAX TO REALLY AN OPERATING GROUND SAYING WE ARE GOING TO LOWER COST AND IN EXCHANGE, YOU HAVE TO KEEP THAT PRICE.

WHETHER IT IS FOR A HOMEOWNER OR A RENTER.

I THINK IT WOULD BE GOOD TO SEE MORE CONFORMITY.

CAN WE HOLD HANDS AND SAY THIS IS WHAT WE ALL NEED?

>> DEVELOPERS HAVE SUCH SWAY AT CITY HALL AMONG DEVELOPERS TO SAY LET'S TIGHTEN UP THE RULES.

IF YOU ARE GOING TO USE THESE TAX INCENTIVES TO MAKE HOUSING AFFORDABLE AND THEY WANT TO BUILD ON THE CITY LINE OR SOMETHING.

>> I DON'T KNOW IF I ACCEPT WHAT THAT PROMISE IS.

>> THERE IS A BALANCE THAT EXISTS AND THE MARKET IS GOING TO RESPOND TO THE MARKET THAT THE GOVERNMENT CREATES FOR DEVELOPMENT.

>> AT ALL OF THESE THINGS ARE CONNECTED.

WE LOWER INTEREST RATES.

IF YOU AS KAMALA HARRIS WANTS TO DO GIVE FIRST-TIME HOMEBUYERS $25,000 FOR A DOWN PAYMENT, THAT GIVES THE SELLERS A LITTLE BIT OF WIGGLE ROOM TO CHARGE MORE.

WHERE IS THE BALANCE?

>> I WANT TO ILLUSTRATE THE MEDIAN HOME PRICE IN 2019 TO PURCHASE THAT WITH AN INTEREST RATE OF 3.

69% WHICH IT WAS FIVE YEARS AGO.

IT WAS $919.

TO PURCHASE THAT'S A MEDIAN PRICED HOME WHICH IS NO LONGER THE SAME PRICE AT 6.

8.

7 5%, IT IS 125% HIGHER.

THAT REALLY SUMS UP WHAT WE HAVE GONE THROUGH OVER THE LAST FIVE YEARS.

RIGHT?

MORE THAN DOUBLE.

AND TO YOUR POINT ABOUT GOVERNMENT AND PRIVATE, IT CANNOT BE SEPARATED.

THEY HAVE TO WORK TOGETHER.

IT IS ONE OF THE THINGS I LOVE ABOUT BEING IN CENTRAL OHIO, WE CALL IT THE COLUMBUS WAY AND WE DO IT WILL.

WE CONTINUE TO DO IT WELL AND WE DO IT BETTER AND WE CONTINUE TO BRING AN END TO THIS ISSUE AND IT IS GOING TO TAKE TIME.

>> $25,000 PER HOMEBUYER, IT IS NOT AFFECTING PRICE.

IT IS ALLOWING MORE PEOPLE TO GET INTO THAT HOMEOWNERSHIP SPACE THAT THEY OTHERWISE WOULD NOT HAVE BEEN IN.

WHAT IT HAS DONE IS BROUGHT BUYERS TO THE TABLE FACING THAT GAP AND OVER 100 OF THEM HAVE BEEN ABLE TO BUY HOMES IN THE COUNTY IN THE PAST YEAR THAT OTHERWISE WOULD NOT HAVE BEEN ABLE TO.

>> WHAT ABOUT FIXING UP OLDER HOMES?

DO WE FIX UP A HOME IN A NEIGHBORHOOD, AN OLDER NEIGHBORHOOD?

>> I THINK WE NEED TO INVEST IN THESE TABLES NEIGHBORHOOD, IF YOU PUT YOUR MONEY INTO THE MORTGAGE, YOU WILL HAVE THE RESOURCES.

SUPPLY AND DEMAND IS IMPORTANT AND THAT FIXES A LOT OF THINGS BUT THERE WILL ALWAYS BE SOME FOLKS LIKE SENIORS WHO ARE RETIRED WHO HAVE THEIR HOME OUTRIGHT WHO NEED THE EXTRA HELP WHERE THE MARKET IS NOT GOING TO BE SUFFICIENT SO WE WORK WITH ZONING AND LOSS AND LABOR BUT WE ALSO MAKE SURE WE HAVE A SOLID SAFETY NET FOR THOSE THAT THE REST OF THE MARKET CANNOT CATCH.

>> ALSO, INCOME LEVELS KEEPING PACE WITH INFLATION AND NOT AN EASY PROBLEM TO SOLVE BUT WE WILL KEEP WORKING AT IT.

>> WE WILL GET IT.

COME THIS WAY.

>> THAT IS "COLUMBUS ON THE RECORD."

WE WILL CONTINUE THE CONVERSATION ON FACEBOOK AND YOU CAN WATCH US ANY TIME.

YOU CAN WATCH US ON DEMAND ON OUR WEBSITE, WOSU.

ORG AND WE ARE ALSO ON THE VIDEO APP.

FOR OUR PANEL AND CREW, I AM MIKE THOMPSON.

HAVE A GOOD WEEK.