Savannah’s homelessness issue has become so prevalent that the mayor noticed it and felt the need to comment on the severity of the situation. Mayor Van Johnson said, “There has been a proliferation of homeless people, roofless neighbors in our community, in our streets, in our squares throughout Savannah,”
One thing about what Mayor Van said that really stands out is his reference to homeless people as “roofless neighbors.” Recognizing homeless people as citizens and a part of our community is essential. It is important to know that more and more of our neighbors in Savannah are suffering from high eviction rates and unaffordable rental costs. This is a SERIOUS issue that spreads all across Georgia. We are 6th in the country for eviction rates, and homelessness went up 13% in 2019 pre-pandemic. As you can imagine, since the pandemic, things have gotten worse.
Executive director of the Chatham Savannah Authority for the Homeless, Jennifer Darsey, said: “80% of individuals getting first-time assistance never had it before.” According to Savannah Now, rent has skyrocketed 32% since the start of the pandemic, while wages have stayed the same. The rent for an average home is set at a luxury cost, and only people from out of town can afford the rates. Investors buying properties, the rise of property tax, and low inventory are only adding to the madness. These complicated factors are hitting renters all at once.
Groups Impacted
Savannah housing action plan stated, “Savannah households with annual incomes at or below about $50,000 are most likely to be cost-burdened—paying more than 30% of their income for housing. Multiple earner households with gross annual incomes less than $50,000($24 hourly full-time) or single earner households with annual incomes less than $35,000 ($17 hourly full-time) are not likely able to afford quality housing in Savannah.”
The homeless residents in Savannah are not on the street because they don’t have income; they are there because they can no longer afford their place. Particular residents like the elderly and disabled on a fixed income provided by the government are more at risk for homelessness. These individuals might receive a monthly income of $800-$1000 plus and can really only afford around $250-$350 a month in rent, but when rent for a one-bedroom apartment is $1200- $1500, their options are beyond limited. As a result, they are forced to live on the street because anywhere else isn’t safe.
In an interview with WTOC 11, Cindy Kelley, executive director for the Chatham-Savannah Authority for the Homeless, said most chronically homeless people are senior citizens. This is a shocking fact when you consider the statistics. In America, usually, only 3.5% of the homeless are elderly. 70% of the homeless are usually adults younger than 50. This says a lot about the state our country is in. The number of our oldest citizens living on the streets is growing. These elders who have worked poured into the system and raised us, and now they are living on the street because they simply can’t afford the rent.
Outside of individuals on a fixed income, everyone is impacted by the rise in rent. This has been tough on everyone, from low-income workers to middle-class working families. As Savannah Alderman Nick Palumbo said in an interview with Fox 28, “We need to have wages that meet the demand for the market demand for housing so that people can afford to live in the place where they work, and people can enjoy living in the city of Savannah,”
Your teachers, school nurses, service workers, and so on are the ones who are hit the hardest. These are the people who serve you, your kids, and your community, yet they cannot afford homes in the very communities they serve, and once we can live.
It’s not like these neighborhoods are full of million-dollar homes owned by the 1 percent. These are average communities and homes that were affordable not even a year ago. With this hike impacting the majority of Americans, what is being done to alleviate the burden?
However, before we can talk about what must be done, we must address why this is happening.
Let’s break down some of these categories that are causing renters to lose their minds in a not-so-fun game of jeopardy.
Investors and Starter Homes
Georgia is a part of what people call the Sunbelt. It is accompanied by a few states like Florida, Texas, and North Carolina, just to name a few. Tricon Residential is a multi-billion dollar investment company determined to buy 800 homes daily. Tricon has made Georgia its home, stating Atlanta is one of their largest “portfolios.”
But why do they fancy little old us so much? Well, there is a wave of millennials moving here from other states. Georgia is, as the kids say, “Poppin.” Fortunately and unfortunately, this popularity is what has sparked investors’ interest. These investors are buying “starter homes” for cold hard cash as soon as they go on the market. Potential homeowners don’t even get a chance to look at these homes because they are gone so quickly. These companies buy homes and raise the rent because they believe millennials prefer renting over buying homes, and with the wave heading towards our state, they want to be the first ones receiving that influx of money.
Low Inventory
Due to investors buying up potential homes, homeowners not being able to afford the price of a home, a wave of individuals who are renting for the first time, and an older generation who is now looking to rent, the demand for rental properties have gone up. More and more people are renting, and there aren’t enough properties. This is the first time in America that the number of renters is growing faster than the number of owners, and we just don’t have the infrastructure.
Property Tax
As the values of homes become inflated, owners, especially those on a fixed income, find themselves paying A LOT more in property tax. Although the millage rate may remain the same, the actual tax will still go up because the value of the home has increased.
Lowering the mileage rate might help offset these raises, but according to Savannah Mayor Van Johnson, they can’t afford to decrease the mileage rate either. Cities use property tax in their budgets and invest taxes into schools and other necessary things for the community. Lowering property tax could put a city under budget. The Stephen’s Day tax exemption may protect homeowners from these spikes. This would somewhat shield homeowners from these increases, but renters do not have that luxury. The property tax is often passed on from the landlord to the renter, and Georgia is a part of 25 states with no rent control. Essentially landlords can increase rent by any percent and force renters to pay.
The way out: Despite the way it looks
Here’s some hope. This is temporary. America has faced problems before, and we have always gotten back up with every dip. This is a national problem; thankfully, steps are being taken to handle the issues.
Savannah has dedicated 19 million in this year’s budget to tackle homelessness and the housing crisis. The money will be distributed to existing housing and neighborhood departments and could help 1,050 families. Seven million will go to the Affordable Housing Fund, 1 million to direct investments, and the rest to construction.
Here is the housing breakdown courtesy of Savannah Now
2022 Housing Projections:
- Housing for those experiencing homelessness: 72 units, $4.35 million city investment
- Housing assistance for renters: 216 units, $300,000 city investment
- Housing repairs: 200 homes, $1.1 million city investment
- Assistance for first-time homebuyers: 75 households, $1.4 million city investment
- New construction on vacant lots: 15 new homes, $200,000 city investment
- Properties bought for future development: 25 lots, $500,000 city investment
- Rental security deposit help: 50 households, $50,000 city investment
- Total projections: 653 units, $7.9 million city investment
Although this plan is helping a few thousand people in Savannah, it’s a start. At least the Mayor and the city council in Savannah are doing something about it. They are trying to hear the cries of the big town with a small-town heart. Not only that, but Savannah is investing in new developments that will strengthen Georgia’s economy as a whole. The deepening of the Savannah River channel, a return of the hospitality market, investments in Savannah’s youth, and Georgia’s overall expected economic growth means the state is headed in the right direction.
Closing statement
Homeless people are people who fall through the gaps in America’s system. They are our brothers, friends, mothers, grandparents, sisters, and so on. They are our disabled, our veterans, and our mentally ill. They are struggling. Homelessness in America is no longer a singular issue. Working Americans are feeling it now more than ever, and it’s time to do something about it. Thankfully we are headed toward growth.
