Affordable Housing

For decades there has been near zero new construction in Davis. In the Davis annex created by Pocahontas Land Co the new construction was often manufactured homes (ie high end mobile homes) that meet HUD standards. These homes have a metal chassis underneath and can be hauled away, though many are built in with foundations and additions. It might cost $45-55 per square foot for one of these, not including the lot.

Average home values in Davis are probably in the $90K range if you net out the shells or near-shells that go for 35-65K (and the shells are often unstable or akimbo). A well-kept and complete small house on a standard 40ft lot might cost $110K. These older, reasonably maintained, homes might sell for $60 per square foot, not including the lot. The per square foot rate will drop as the house gets larger, but most Davis homes are small.

Standard Davis lots (not on corners) are 5,200sft and are worth from $20-24K today -- though you won't find many, if any, on the market. Standard Corner Lots in Davis go for $40-45K and are 7,900sft. The Davis Annex lots are larger (1/3 acre) but generally not thought of as being very desirable since they are not architecturally interesting and are not layed out in the compact format of old Davis.

Affordable housing is something that alot of locals talk about. There are banks and government entities focused on subsidizing the financing and price point of housing in order to provide rental and ownership opportunities for those making some amount less than the average income in Davis. For example, the Randolph County Housing Authority can consider programs for a 1 or 2-person family making $22k or less...now that is alot of folks in Davis. They help prospective buyers figure out what they can afford and then build or find townhouses and single family homes to suit.

Some percentage of the 60+ residences I will eventually build in Davis should be more affordable to buy. They will still be Energy Star and low maintenance. They will still be consistent with the lumber boomtown sytle venacular. But they will be a bit smaller, sit on the smaller lots, and may have laminate instead of stone counters, for example. The Davis housing market could have a future of healthy price diversity. There should be room for a $300K, 4,000sft classic Victorian, a $185K, 1,800sft premium Vic, and a $110k, 1,400sft basic "Katrina cottage" style Victorian. Hopefully, the comparables and appraisal market will develop in sophistication enough to recognize that there can be several categories of new construction in the same village.

I have often noted that if left alone, Davis would gravitate toward "shelter" homes -- cheap, manufactured, one story, unattractive homes that cost $50sft or less and have no interest to 2nd home buyers or active retirees seeking to buy in the area. Along with this trend would be the deterioration of the existing, often dilapidated, housing stock, toward a negative value impact on the underlying land. When lots are too cheap they are left vacant or with derelict buildings, or with collected junk. If lots remain too cheap they become sites for used mobile homes. If lots are just expensive enough, they are only purchased by consumers who will build something that meets national building codes, and with luck, is reasonably fitting for the town. This is one reason that I am glad to see the value of Davis lots double over the 7 years I have been following them.

Still, the home sites -- while relatively hard to find on the market -- are as cheap as they come anywhere. The challenge will be to set design trends that result in affordable housing that looks good, functions well, has low costs of ongoing ownership, and that fits in with houses twice the price. The promise of village life at the doorstep of Canaan Valley is not just for workers, not just for artists and athletes, not just for retirees, and not just for weekenders from Pittsburgh or DC. It will work for a diverse and fun mix of all these people.