Study: Kissimmee has least affordable housing in area

According to a real estate study, Kissimmee is last when it comes to available affordable housing in the Central Florida area.

The grim statistic could be attributed to wages failing to match the cost of living and new construction not addressing the need in the area, according to Rev. Mary Downey, CEO of Hope Partnership.

The Orlando Metro Affordability Report for July 2023, released by RealtyHop, showed that Kissimmee households spend 43.25 percent of their income on mortgage and property tax payments.

The question is — why the high number?

“This is largely due to the disconnect between lower income and high real estate values. Over 20 percent of the population in Kissimmee is in poverty, but the city’s proximity to Orlando and major resorts (therefore job opportunities) makes real estate in the area more desirable for many,” said RealtyHop Data Scientist Shane Lee.

The examples of need for affordable housing in Osceola County are everywhere, Downey said.

“Motels along the (U.S.) Highway corridor are filled with members of our workforce who are raising their families in 250 square-foot rooms,” added Downey, who leads Hope Partnership, an agency striving to end homelessness and poverty in Central Florida. “We serve nearly 100 individuals every week at an outreach event for people who are unsheltered; individuals and families are living out of their cars. Entire tent communities exist in wooded areas across the county, and we are receiving upwards of 1,500 calls a month for assistance at just our agency. I’m sure others are seeing the same”.

But what is the root of the problem?

“Wages are not keeping up with the cost of living: the average minimum wage worker must work 92 hours a week to afford a modest one-bedroom apartment. Our new construction is almost entirely three products: large single-family homes, luxury apartments, or short-term rental properties that serve people who are only here on vacation,” Downey said. “There is no financial incentive for developers to build multifamily apartment units, condos, ‘starter homes,’ or any of the other products that help people build a rental history or get into the housing market (a notable exception is the Teale Apartments on 192 in Kissimmee). People are relocating to this area faster than we can build new homes. Efforts to pass a renter’s bill of rights have not gained traction, and legislation to control the rising costs of housing has been overturned in Tallahassee. There is no public housing in Osceola County, so even people who move here with a valid Section 8 voucher can’t put that to use. These are a few of the many reasons why we think this is occurring in Osceola County.”

To begin remedying the problem, there needs to be “a shift in belief,” Downey noted.

“We believe that everyone deserves a safe place to call home. Too many people in our community are simply not prioritizing that belief. We need to incentivize and fast-track building projects that address the ‘missing middle’ and the lowest wage-earners. We can convert more motels into dignified apartment homes. We can revisit zoning laws that exclude innovative housing solutions and we can modify impact fees and government costs in a way that prioritizes affordable build-out first,” she added.

But some recent light did shine locally. The Osceola County Council on Aging recently announced that it was the recipient of a $5.6 million Department of Housing and Urban Development grant to construct Buen Vecino, an affordable housing complex for seniors aged 62 and up in Buenaventura Lakes.

Rent will be subsidized in 60 single-story, one-bedroom units; residents will pay no more than 30 percent of their income toward their housing payment. A communal clubhouse will house a congregate meal site to hold lunches and activities. It will include an on-site social worker to help maintain residents’ needs. The Council on Aging was among 32 senior-serving organizations to apply for this grant – and the only one to receive it.

At the other end of the scale, Ocoee was the most affordable market in the Orlando Metro Area and has the highest median purchase price of $410,000, the study showed. Households make a median income of $92,838 and only allocate 28.79 percent of that toward homeownership costs.

“Higher than average median household income makes Ocoee the most affordable market in the Orlando Metro,” Lee said. “However, home prices have been on the rise in Ocoee and so it’s possible that housing affordability in the city will worsen and exceed the 30 percent threshold in the foreseeable future.”