The Republic of Davis
Subsidized homes for people who make almost $100,000 a year... it's rather mind-boggling. I guess it will all work out, so long as people can still afford to buy the remaining 50% market rate portion of the project. I wonder though, how long will it take before the people who can afford the ever increasing market rate will decide to take a pass on Davis, and head for other cities instead. Davis is great and all, but if to buy a home you will also have to pay for subsidizing the other 50% of the homes in the development, that's going to get expensive.. and is it really worth it to live in Davis?
And if the prices keep going up and up, will they then have to mandate that another 25% be sold to the next income bracket up? This just doesn't seem like a sustainable solution, especially if you are only building 250 units a year.
Sacramento Bee article, via California Insider.