The Housing Action Committee Meeting held on December 9, 2024, in Hilton Head Island, highlighted pressing concerns regarding the region's housing affordability crisis. The discussions centered around the critical issue of the 30% affordability threshold, a standard that dictates that no family should spend more than 30% of their income on housing. This benchmark is increasingly out of reach for many residents in Beaufort and Jasper Counties, where families are forced to make sacrifices in essential areas such as food, transportation, and childcare due to soaring housing costs.

Dr. Ulrich from the Federal Reserve presented alarming statistics indicating that for the past 21 years, neither Beaufort nor Jasper Counties have met the affordability criteria for housing. The median family income in Beaufort County stands at $106,400, yet potential homebuyers would need to earn nearly $170,000 annually to afford a median-priced home. This stark reality has left many middle-income families unable to purchase or even rent suitable housing, with three-bedroom rentals nearing $3,000 per month.

The meeting underscored the "press down effect," where those who would typically buy homes are now opting for luxury rentals, pushing middle-income families into lower-quality housing options. This trend is expected to exacerbate homelessness, as affordable housing options dwindle.

Hilton Head Island has seen a 14.7% increase in median sale prices from 2019 to 2024, significantly outpacing the national average of 5.1%. The rising costs have created a challenging environment for both potential buyers and renters, with many higher-income individuals also struggling to find suitable properties.

The committee emphasized that addressing the housing crisis requires intentional development of workforce and affordable housing. It was noted that federal solutions have been stagnant, with a significant piece of legislation stuck in the Senate for a decade. Local leaders stressed the need for public-private partnerships to create viable housing solutions, as the current workforce crisis continues to impact the region's economic development.

In conclusion, the meeting highlighted the urgent need for collaborative efforts to tackle the housing affordability crisis in Hilton Head Island and surrounding areas. Without immediate action and innovative solutions, the community risks further economic and social challenges as housing becomes increasingly unattainable for its residents.