Bridging the Gap: Navigating Housing Affordability in Garrett County

As of February 10, 2024, there are 8 homes throughout Garrett County listed within the threshold of affordability previously discussed. Unfortunately, it is unlikely that any of these properties will fit the needs of a Workforce Buyer in Garrett County, Maryland.

The reality is stark: USDA, FHA, and even some Conventional loans have specific condition and livability standards in order for buyers to obtain a home loan. If the buyer is unable, and the seller is unwilling to make the necessary repairs to meet these standards, which is the case the majority of the time, the buyer won’t be able to get the loan.

At the heart of Garrett County lies a significant challenge: affordable housing for its workforce. With a median income of $54,500 for a family, many hardworking individuals find themselves caught in a financial bind when it comes to securing suitable housing. Let's delve into the numbers and explore potential solutions.

Workforce Buyers in Garrett County typically earn between 60% to 120% of the local median income. This translates to an annual income range of $32,700 to $65,400. However, national standards dictate that any household spending more than 30% of yearly income on housing is considered overburdened.

For example, a family earning $65,000 per year shouldn't spend more than $1,635 per month on housing costs. But what does this mean in terms of the local housing market?

Considering average utility and internet costs at $200, plus phone expenses of $150, we find that a Garrett County Worker is left with approximately $1285 to cover rent or mortgage. With average rent and insurance ranging between $1300 to $1600, the situation becomes clear – affordable housing is a pressing need.

However, there is hope. Even with these constraints, a Garrett County Workforce Homebuyer can afford a mortgage of $1,285 per month. At today's interest rates, this translates to a home costing between $155,000 to $180,000, depending on the down payment available.

For those utilizing USDA loans with no down payment, a $155,000 home is within reach. Similarly, individuals opting for FHA loans with a 3.5% down payment can afford a $160,000 home. These scenarios represent typical situations for the Garrett County Workforce.

Contrast this with the current housing market landscape, where the average list price of Garrett County homes exceeds $897,000, and the median list price is $619,000. The average sold price in the last 30 days hovers around $600,000, with a median of $478,000.

Clearly, there's a significant gap between what the workforce can afford and the reality of the housing market in Garrett County. Addressing this gap requires concerted efforts from policymakers, developers, and community stakeholders to ensure that affordable housing becomes more than just a dream for the hardworking individuals who call Garrett County home.

As the Garrett Workforce Housing Alliance, we're committed to raising awareness, advocating for change, and collaborating with partners to create tangible solutions. Together, let's unlock the doors to affordable housing and build a brighter future for Garrett County's workforce.