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1997 LICKING COUNTY HOUSING FORUM: Housing Trends
According to the Licking County Planning Commission, growth is occurring county-wide and the construction of single-family homes continues to increase. The City of Pataskala has approximately 800 homes scheduled for construction. With the installation of water and sewer throughout (the former) Lima Township and with the recent merger of Lima Township with Pataskala, it is likely that new residential development will occur at a higher rate and higher density than it has over the past five years. Harrison and Etna Townships are experiencing phenomenal growth because water and sewer are available in these areas. Currently Etna Township has approximately 300 lots being developed while Harrison Township has 400 lots being developed. Heath has three to four subdivisions currently under construction while Johnstown has one under construction. This list is not exhaustive. (See map)
The City of Newark Building Code Department issued 61 permits from January 1 to August 31, 1997 for the new construction of single family dwellings. Most of these homes carry an average price tag of $100,000+. The Building Code Department does not classify housing starts according to affordability. Few multi-family units are currently being constructed in the City of Newark and no multi-family housing units are currently being constructed in the County. The City of Newark estimates that 10% of all rental units are substandard and another 20% are suitable for rehabilitation. 8% of all owner occupied units are substandard and another 24% are suitable for rehabilitation. (Plan) The Building Code Department also stated that at this time there are no large scale rehabilitation projects currently being undertaken in the City of Newark.
According to local Realtors from Burger and Rector, most of the growth is occurring in the form of single-family homes. The average home on the market today in Licking County ranges from $100,000 to $120,000 with three to four bedrooms and two baths. The average price of a home for a first time home buyer in Licking County is $80,000 to $100,000 with three bedrooms and one to one and a half baths. Currently the most active market is the $100,000 - $150,000 price range. Those purchasing homes over $200,000 are corporate individuals, doctors, lawyers, and many business owners who work out of their own home. Also, many of the more expensive homes are being purchased by individuals who commute daily to Columbus.
Most of the new homes being constructed and placed on the market today are not "affordable". The minimum household income necessary to purchase a home that meets code in Licking County is approximately $30,000/year with a minimum of $3,000 to $5,000 dollars down payment. "Affordable" may be defined as a home in good condition found in the $60,000 to $70,000 price range that a family making less than $30,000/year could afford. If a home is found in this price range it is either small or requires extensive rehabilitation.
The most expensive areas to purchase homes are Granville, Johnstown, and the area adjacent to the lake in Buckeye Lake. As the area continues to feel the growth pressures from Columbus, land prices throughout the county will continue to increase. As of this writing, the most affordable land can be found east of Newark and north of Johnstown. This leaves little room for the development of affordable housing located near current and potential job sites.
Multi-family housing is also being impacted by this growth. The vacancy rate in Licking County is less than 8% with the average rent in the range of $450 to $750 per month. The demand for this form of housing is constantly increasing. Recently, no new multi-family units have been constructed and currently only one area, Harrison Township has any new development of this type proposed.
Licking County's 1992 housing study indicated that there is a great demand for new housing construction of both rental and owner occupied units. The study states that up to 255 new housing units could be absorbed each year.
Currently it is a buyers market with a lot of new houses on the market. Peak years for housing in Licking County were 1993-1995 when houses appreciated too quickly, affecting current prices. However, it is anticipated that prices will only increase in the next five to ten years.
There is a need for outreach efforts to those renters who may leave the resources to purchase their own homes. Some organizations and financial institutions are developing homebuyer training and self sufficiency programs which will offer this needed help. Also, an abundance of funds available for home loans exists and local banks and savings and loans are more willing to be relatively flexible in regard to down payments. (CHIS)
The need for housing rehabilitation county-wide is also an issue. In 1990, the total number of occupied housing units county-wide was 47,254. According to the 1990 Census, 284 of these units lacked complete plumbing facilities and 331 units lacked a kitchen. Even though this is a small percent of the total number of units this complete illustrates that people are still living in substandard housing. The City of Newark estimates that 10% of all rental units are substandard and another 20% are suitable for rehabilitation 8% of all owner occupied units are substandard and another 24% are suitable for rehabilitation.
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