Arizona’s housing affordability crisis has deepened as rent prices and home costs continue to soar. A recent report from Arizona State University’s Morrison Institute for Public Policy highlights the stark financial realities faced by many residents in the Grand Canyon State.
John Martinez, a resident of downtown Phoenix since 2018, shared his experience with ABC15: “For the same one-bedroom apartment, I used to pay $1,300. Now, I’m paying $2,300,” he said. Martinez acknowledged the high cost of living in downtown but chose to stay as Phoenix’s growth continues.
The Morrison Institute report details a staggering 72% increase in rent from 2010 to 2022. It reveals that minimum wage workers would need to work 86 hours per week or hold more than two full-time jobs to afford a two-bedroom home. “In 2023, renting was about $3,000 more expensive than owning a home. Renters typically earn about $33,000 less annually than homeowners, highlighting a significant disparity,” explained Alison Cook-Davis, research director at the Morrison Institute and co-director of the Arizona Research Center for Housing, Equity and Sustainability (ARCHES).
While many homeowners have benefited from refinancing during the pandemic, first-time homebuyers face escalating challenges. The median home sale price surged 57% from April 2019 to April 2023, reaching over $423,000. People of color are particularly affected, struggling with lower incomes that make homeownership even more elusive. Patricia Garcia Duarte, executive vice president of homeownership initiatives with Chicanos Por La Causa, emphasized, “Historically, people of color have faced lower wages, making it harder to catch up. We need intervention.”
Chicanos Por La Causa, a nonprofit assisting with rent and mortgage support, notes that while demand for assistance remains high, it has not reached the levels seen during the pandemic. Garcia Duarte advocates for more affordable entry-level housing and homeownership opportunities for the workforce.
In response to the crisis, recent legislative actions include a new law signed by Governor Katie Hobbs allowing the construction of accessory dwelling units (ADUs) in backyards. Additionally, programs like the Arizona Is Home initiative, a partnership between Chicanos Por La Causa and the Arizona Department of Housing, offer financial aid for first-time homebuyers.
Cook-Davis remains cautiously optimistic about these measures: “These efforts may help alleviate some supply issues, but we will need to see their full impact over time.”
The 48-page ASU report also explores related issues, including homelessness, eviction rates, and the impact of extreme heat on the housing market. You can read the full report here.
https://morrisoninstitute.asu.edu/sites/default/files/2024-08/state-of-housing-in-arizona-mr.pdf