The Price of Shelter
If you’re a first-time homebuyer in the Walla Walla market, things aren’t looking optimistic. As of this writing, the least expensive single-family residence larger than one bedroom on owned land is priced at $249,900, down from its original list price 239 days ago.
Located at 940 Edith Street, this three-bedroom, one-bathroom home fits tightly inside 752 square feet on a 0.12-acre lot, facing a heavy industrial zone and just one block from the famous 1313 North 13th Avenue—the Washington State Penitentiary.
A first-time homebuyer, to qualify for an FHA loan (assuming Trump hasn’t killed that too), must have a credit score greater than 580. They must put down 3.5% of the purchase price—$8,747 in this case—prepay mortgage insurance (about $4,220), cover closing costs between $7,500–$10,000, and pay property tax and insurance, which vary depending on the timing of the transaction but would be $2,000–$4,000.
That’s $18,250 to $22,500 just to get into this house. They will then have a loan of about $240,000 and a payment of $2,005. To qualify for this loan, the borrower must have an income of about $6,900/month, or $82,000 per year.
This is unsustainable for our community. We need:
A vacancy tax/non-primary residence tax
Enforcement against unlicensed vacation rentals
An end to corporate ownership of single-family residences
More housing
A reality check
Our population is declining—the U.S. Census estimates we’ve lost 1,400 people over the past three years. Neighborhoods sit empty as wealthy people’s vacation homes are rarely used, and unlicensed vacation rentals have proliferated without enforcement.
Across the country, 1 in 4 single-family residences are being bought by corporations, who then rent them out. This trend holds true in the Walla Walla market.
We have jobs going unfilled at the Penitentiary and in state government. Housing unaffordability is a factor in our healthcare crisis—and certainly a factor in why the school district is considering closing another grade school.
Walla Walla has done a magnificent job of becoming a popular retirement community and international wine destination. But it’s come at the expense of our youth and working class, as we force them to leave town.
by Tom Schmerer
