Tuesday, January 20, 2009

Email From A Resident

A recent question I was asked was why housing prices continue to plummet here in the Tri-Hamlet area. One simple answer would be the amount of foreclosures in this area. Another answer is the amount of available rental housing, which I and many people believe are the overriding factor.

A quick example would be to look at areas such as Commack, Sayville, Bay Port, and Smithtown. The overwhelming amount of homes in these areas are owner occupied, which in turn assists in maintaining housing values. The Tri-Hamlet community can only hope that incorporation is the answer, but alas, it unfortunately won't be. As an example, were rental permits to double, from say $1000.00 to $2000.00, an average increase of less than $100.00 per month would be passed down to the renters. Would that amount be enough to dis-courage potential renters, or force the current renters to move? Absolutely not!

The only way this area can can overcome this dilemma is to try and limit absentee landlords. Otherwise, we will see in the near future a boom in "affordable housing". This trend will degenerate housing values further, and no change of name, village, etc. , will stop this backward spiral.

Anthony Torres