LAS CRUCES – Residents and housing analysts say the city’s housing and rental market continues to rise, driving prices lower for those on the lower end of the wage scale.
Natalie Medina is one of those residents. She says she recently escaped an abusive relationship, leaving her and her teenage daughter and son searching for housing without much savings. She works for $12 an hour at a recovery center. It’s enough to rent a two-bedroom apartment in a less desirable part of town, she said.
Medina applied for rental assistance through the Mesilla Valley Public Housing Authority, also known as the Section 8 Housing Voucher, which provides a set amount of money each month to area residents to prevent families from falling into poverty. a cycle of homelessness.
For two years, Medina was on the waiting list to receive a voucher. About a month ago, she and her family received approval for a three-bedroom unit. The MVPHA requires that families using assisted living have separate rooms for children of the opposite sex over the age of 5. Therefore, they will have to move out of their current housing situation.
Medina said the monthly stipend could help her family raise their standard of living, providing peace of mind and comfort and reducing stress.
As soon as she was approved, a 60-day clock began counting down the days Medina had to find a place to live or the coupon would expire and she would go back on the waiting list.
“They (MVPHA) told us that if you find something, even if it’s in a bad area, take it because there’s nothing in the market right now,” Medina said.
It’s been over 30 days and Medina is still looking for something she can afford that will meet the needs of the family and MVPHA. She must pay the rent difference not covered by the voucher.
She calls the rental market in Las Cruces “relentless.” That sentiment is backed up by Natalie Green and Erin Boyd, who analyze the local housing market.
Boyd, the housing manager of Hope Community of the Mesilla Valley — which serves the homeless in Doña Ana County — said before the pandemic, it was easy to connect with landlords with available and affordable units. Today is a challenge.
“There is a lack of affordable housing in our community, period and it’s not just single occupancy units, it’s family units, single family homes…” Boyd said.
Why are rents increasing?
From 2019 to 2021, Las Cruces was in a real estate market boom. The number of active listings decreased from 700 to 350 and the median home price increased from $197,000 to $250,000 in those two years. More competition for fewer homes means higher prices—good news for real estate agents and sellers, but not always for buyers.
Those unable to obtain a home will remain renters, which means fewer units to rent. More competition for fewer rental units means higher prices for rental units.
“It’s like a domino effect,” said Green, the city’s housing and neighborhood services manager.
Factors like natural inflation, the pandemic, and some potential rental units being converted to short-term rentals, such as AirBNB, have also led to increased demand and higher rents.
What is considered affordable rent in Las Cruces?
The US Department of Housing and Urban Development defines affordable housing as housing in which the occupant pays no more than 30 percent of their gross housing income plus utilities.
Green said that based on that calculation, the average Las Cruces family shouldn’t be paying more than $600 a month in housing plus utilities for “affordable housing.”
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The average cost of a two-bedroom apartment in Las Cruces is around $742 per month, according to Fair Market RentAnd that doesn’t include utilities.
Data from the city’s Department of Economic Development indicates that 70% of city renters pay more than 30% of their income in housing costs.
“It’s a tough challenge and there just aren’t any easy answers, and even if it seems like it’s just Las Cruces, it’s actually across the country,” Green said.
Those receiving government assistance face additional obstacles
Currently, more than 10 million Americans use federal rental assistance to afford modest housing.
However, those who use federal rental assistance face barriers, including that the vouchers rarely cover enough to afford a modest standard of living and there is a stigma attached to assistance.
Many landlords refuse to accept vouchers because the person doesn’t have a reliable or high enough income outside of assistance, according to Green.
At the Mesilla Valley Community of Hope, Boyd says they have more than enough coupons available for people who need them, but there are no units to use them.
Several programs are helping those receiving government assistance find housing.
The City of Las Cruces is partnering with the New Mexico Department of Children, Youth and Families on a project called the “Homeowner Incentive Mitigation Fund,” which will provide homeowners with additional funds to renovate units if they are willing to receive more people with coupons. .
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In June, the city of Albuquerque voted to ban “source of income discrimination,” which seeks to help low-income renters find safe, stable housing wherever they see fit. Las Cruces will monitor how that mandate works in Albuquerque so they can possibly do something similar, Green said.
Medina said landlords denying vouchers have been a factor in her struggle to find a new place to live. His current landlord does not accept government assistance vouchers.
Additionally, Medina said that after a disagreement with a fellow tenant at a previous apartment complex, she was evicted. She said the landlord claimed she was evicted because she hadn’t paid rent, a claim she says is not true. Lacking the means to fight the eviction, Medina said the eviction for non-payment of rent is now on her tenant record, adding to the landlords not giving her a chance.
“I don’t have a criminal record or anything like that,” Medina said. “Even if I try to explain, they don’t give me a chance.”
Annya Loya is a general assignment reporter and can be reached at [email protected] either @annyaloya On twitter.