COLUMBIA, S.C. — The sound of construction that typically signals progress is now muffled by the rising costs of materials and labor, creating a significant hurdle for affordable housing developments.
With residents already feeling the strain of escalating rent prices, a new law signed in May aims to provide a lifeline for these projects.
According to SC Housing, the agency overseeing housing projects, numerous affordable housing initiatives are grappling with unexpected spikes in construction costs due to COVID-19.
Taylor Ladson, a Columbia resident, tells News 19, "I pay about $3,500 a month for a two-bedroom apartment."
Shanice Jackson, another resident, said, "My last place was only $650, but it went up to $850 in six months, so I left."
A law signed by the Governor in May aims to help the problem. This legislation allocates $25 million from the state’s Housing Trust fund to address the escalating construction expenses that are threatening the viability of many housing projects.
The goal is to bridge the funding gap and ensure these units come online soon.
On Tuesday, the Joint Bond Review Committee approved funding for a range of projects across the state. Notable beneficiaries in Columbia include Benton Crossing Apartments, Midtown at Bull Street, and Dogwood Senior Village.
The approval provides a glimmer of hope for residents in search of more accessible housing options.
"Columbia should continue building, creating nicer homes, apartments, duplexes – everything needs an upgrade,” said Jackson.
A recent study found that 50% of renters and 25% of homeowners with a mortgage are housing-cost-burdened, which means they spend more than 30% of their monthly income on housing.