— by Susan Bradford —
First of all, let me thank Steve Mckenna ( see orcasissues.com/guest-opinion-moratorium-on-vacation-rentals-needed-immediately ) for opening this discussion. It has obviously sparked a lot of thought-provoking comments. I would like to weigh in as one who has recently been directly affected by this situation.
I have lived on Orcas for twelve years as a person who has happily rented by choice, as I have my entire 69 years on this planet. I am not without means, and yet when the owners of the house my partner and I had been renting for six years told us that they were selling it, we were unable to find another place to rent. Not merely an affordable place, but any place at all.
Luckily, we own a boat that is big enough to sleep on and that is where we currently reside along with our two cats. While the adjustment has been OK for all four of us, it was not our choice and that is the point.
All the discussions above were theoretical, and I confess that I care not a whit for the economics of it all, not do I pretend to understand it. What I do know is this. In the process of searching for a place and telling everyone I know what our predicament has been, so many people have shared stories of their own that are similar or much worse. This is anecdotal to be sure, but must count for something in assessing the Big Picture of what is happening on this island.
Whether we stay on Orcas or not is very much up in the air at this point. The climate seems to have changed quite a bit in the past 12 years, and it may not be a good fit for us anymore. To be sure rentals are not easy to find in other parts of the country. But I lived in New York City during the housing crisis of the 1970’s, and always managed to find decent housing. And have ever since. Every place I lived until now! Trust me that 12 years ago when we came here, you could still rent a house on Orcas. That does not seem to be true anymore. And the houses that are for rent are over priced to say the least. Case in point. We were offered a cabin with no toilet and a rudimentary kitchen for $750/month. They had to be kidding!
I do not know what the answer is. But I do know that it does not lie in economics or the rights of property owners. Rather it seems to go hand in hand with compassion. Again, I am a person who is renting by choice and have the ability to pay a decent rent. Others are not so lucky. What will happen to them? And what will happen to such a small Eco-structure such as Orcas that cannot provide for its own? It is in the answers to these kinds of questions that the solution lies.
Fact gathering, changing policies, writing new laws and ordinances all take time. And this is all happening right now! And valuable people are moving away, or cannot come. People who provide services and people who provide love for this land and this island.
Of course, economics matter. And of course, property owners have rights. Those who bought their houses on this island many years ago are set! Those who are buying now have at least some financial security. Is Orcas to become an island that does not care about the rest of its population? Has Orcas lost its soul? I hope not!
Susan–
I understand that the economics and legal aspects of various approaches to solving the affordable housing problem are of little interest to those confronting the very real issue of finding a place to live in the moment, and I agree that there is a wealth of anecdotal information out there from neighbors and friends and family concerning the difficulty in finding housing.
The problem is that the issue has been with us for years, decades even, and nothing is done about it, in my view, precisely because we have not gathered the data required to understand the problem and make policy changes. Put two islanders together in a room and you’ll get four opinions about what the problem is and how to solve it. Multi-family rental housing? “Tiny house” villages? Manufactured housing?
The problem with issuing a moratorium on vacation rentals is two-fold. First, it would almost certainly be challenged in the courts and struck down. Second, it does not necessarily address the sources of the problem, which are manifold and include low wages paid in the service economy. As someone in the real estate industry pointed out, properties that do well as vacation rentals are not usually those that would suit long-term renters.
At least one of the issues is that people who bought property years ago are not necessarily “set.” Many bought before the recession hit, and real estate values plummeted, close to halving the value of what is, for most, their principal investment. In many cases, rents don’t even cover the carrying costs of the mortgage and taxes. Vacation rentals are one way to stave off foreclosure.
Marshaling facts and committing to finding a solution that makes sense in light of them may take time, but the sad fact is that the alternative is just years more of headlines about the problem with no action.
The County is now engaged in its required review of its Comprehensive Plan, and this provides the perfect vehicle for the gathering and organization of real data about our people and our housing. I intend to encourage the County to just that.
No place in the nation has enough affordable housing according to this article.
https://www.businessinsider.com/every-single-county-in-america-is-facing-the-same-crisis-2015-6.
I am excited to see how Orcas solves a problem that no other community has ever been able to solve. If it can be done anywhere, I suspect it is on Orcas.
Susan says … “we were unable to find another place to rent. Not merely an affordable place, but any place at all.”
So what is it that has made rental places scare? Steve Mckenna says it is because vacation rentals are more profitable than long term rentals and people are converting their properties to make more money. His proposed solution is to have government control what people can do with their houses.
Susan says … “But I do know that it does not lie in economics or the rights of property owners.”
Actually, economics does hold the key. More affordable housing available for rent would become available if San Juan County adopted policies that encouraged rather than discouraged such property.
As Peg has pointed out, the Growth Management Act, has interfered with the market. The policy of restricting where homes can be built, how many homes can be built, and the move to block guesthouses and mother-in-law places has made the problem worse rather than better. The solution is not to pile on more regulations but to remove the ones that are making the problem worse.
I have a guesthouse on my property that I could rent out to someone, perhaps even Susan. But there are regulations in the County that prohibit me from doing that. Eliminate that one regulation and a number or places for Susan and others that prefer to rent would open up.
There is demand in every community for low rent housing. If any community ever builds enough, then it is likely to have people moving in from other areas to take advantage of the cheap rents. Thus recreating the problem. In other words, it is possible to eliminate the problem without addressing the issue nationwide?
Another thing contributing to a lack of rentals is the changing desires of the public. After the housing crash a large segment of the population decided they would prefer to rent than own. Much easier to walk away from a rental than trying to sell your house if you get a job in another town. Seeing too many people upside down on their purchases scares a lot of people. It is cheaper to buy a house than rent in many communities precisely because demand for rental properties is up.
While I don’t expect we will solve the problem we can do many things to help. Using the Growth Management Act to encourage low rental housing instead of increasing the costs would go a long way to help.
Sandy: The Growth Management Act IS the problem. It has broken up the inclusiveness of our Island Community. Cramming about half of the populace into a UGA (Urban Growth Area) Has impacted the quality of life in Eastsound while those outside this UGA aren’t plagued with constant vehicular traffic, dust, noise and lack of privacy. This may be a good Deal for business but not necessarily for residents.
We Can OPT OUT of the Growth Management Act this year! I believe that Orcas can find a way to be good Stewards of the land AND OPT OUT of the GMA. I believe we will save money in the process. We can’t always rely on “Government” as in those We Elect to think for us. Those who profited from the adoption of the Growth Management Act will undoubtedly profit from Opting out also. So no one will lose and there is much to gain! I want to FEEL that I am on an Island again!
Spirit Eagle
Susan, I am glad you shared your story. Although I am a home owner, I was prompted to respond to Steve McKenna’s letter because I currently know three families who have been searching for rental housing unsuccessfully for months–first, a woman who owns her own business and employes 3 other people. She’s been here 15 years, but the rental she’s lived in for years is being sold. A couple who moved here from the other side of the state to take a well-paying county job cannot find a place to live, and a family with two working adults who’ve been here several years, and who’s rental home is being converted to a transient rental.
True enough that there have always been vacation rentals, and a tight rental market, but in my neighborhood the number of transient rentals has exploded in the last 5 years, and I can’t help but think that has something to do with the housing shortage. I am glad to see that OPAL is planning to build 30 rental units, but depending on the income restrictions, people like Susan, and the three people I mentioned above, may make too much money to qualify for OPAL rentals. Like Susan, I do not know the answer, but I know many vital services are provided to our island community by people looking for decent housing.
Lots to ponder here. But one thing is certain: It will help greatly when OPAL is able to realize its plans for new low income rental housing on our island. Let’s all get behind it.
s
Steven, it was pointed out to me that Opal is not a low income rental but a affordable housing…this is a $211,000 home not owning the land but i see this as also problematic….I am hoping Opal is able to help
Could people post what they see as “affordable” rental housing in terms of dollars/month for 2 bedrooms? That could cover a family of 4, a parent and child, etc. I wonder whether or not we are all even on the same page? So, let’s start with a definition!
OPAL had a public meeting asking for input on their new project. One of the questions to the attendees was how much can people pay in rent? Many suggested rates of $500 for a studio up to $1,200 a month for a multi-bedroom house.
An article in the International Business Times says that there is a generation of people that have chosen to rent rather than buy and as a result there is a strain on affordable housing.
Read their summary of a study by Harvard –
https://www.ibtimes.com/homeownership-drops-lowest-level-over-20-years-rental-costs-climb-1981543
In other words there are more people saying “we want someone else to take the lack of flexibility and the risks involved with owning. We prefer to rent.” As there are a lot more people doing this now than there has been historically, there are not enough rental units to accommodate the surge in demand. And when there is a shortage of something the prices increase to allow those that want it the most to get what they want.
A link directly to the Harvard study regarding rental housing and the cause of the problem across the nation.
https://www.jchs.harvard.edu/sites/jchs.harvard.edu/files/jchs-sonhr-2015-ch5.pdf
Today there are more people like Susan that prefer to rent rather than buy. Because there are more people like her than there has been before, there is a rental housing shortage.
Sandy Lee, thanks for throwing out a number. I wish more would so do. 1200/month basically represents the mortgage payment on a 150,000 house with a 15-year mortgage at 4%. Currently, per Zillow, there is not a single home for sale on Orcas at that price! The closest is a 240 SF studio asking 200,000.
So, that level of rental payment doesn’t cover much. Figure an owner has taxes (around 2,000-3,000 on Orcas for that value,) maintenance costs, insurance, etc. So if a renter is expecting a multi-bedroom house for 1200/month, they are really saying that they expect the owner to subsidize their living. Real numbers are sobering but can focus this discussion and move us all beyond the feel good answer of “of course, we all want everyone to have affordable quality housing.”
I agree with Neil that we have no idea of what people need or want in terms of rentals. I saw a comment by someone who wanted four bedrooms in the OPAL development. That seems to be a real outlier. Another wanted a washer/dryer in the unit rather than in common. Again, that seems like an outlier for affordable rentals. So, please, tell us what rental unit seekers are wanting, needing, expecting, for what price, w/ or w/o utilities, deposit policy, etc. We can use those comments to develop a profile of what is needed/wanted/expected.