Arizona’s shortage of affordable housing ranks among the most severe in the U.S, with the National Low Income Housing Coalition’s annual analysis of affordable rental homes showing just 26 units available for every 100 extremely low income renters in the state. With only California and Nevada having more severe shortages, the situation paints an undoubtedly clear picture in need of a solution. From residential developments bringing a hopeful outlook on the matter to how new homeowners can navigate an unexpected investment, here’s what you should know.
Understanding Arizona’s housing issue
When looking to understand the factors driving Arizona’s housing crisis, the housing shortage in conjunction with rising rents are two of the most impactful, particularly for those with the lowest incomes. This has led to many tenants being forced out of their homes, with the Phoenix area leading the U.S. for rent increases with a 30% jump last year (and the potential for rents to climb another 20% this year). With few apartments and a growing population, AZCentral notes that rent outpaces income gains in addition to “a buying spree of Phoenix-area complexes by corporate investors” has led to anything but a good scenario for many.
In terms of addressing the matter, ASU News touches on how education can play a role, as the state’s economy is dependent on low-wage jobs and “hampers the ability” to create higher-waged jobs that will allow residents to better afford housing. “We should be advancing low-income housing projects that have one objective — the educational attainment of the adults and children that live in the supported housing,” says Michael Crow, president of ASU. The article further goes on to note how the pandemic has factored into the housing issues, and mentions that the pandemic has exacerbated the wealth gap, resulting in those who have prospered having invested into their homes or buying new ones.
Prescott Valley developments
When it comes to finding a solution for Arizona’s affordable housing issue, one Scottsdale developer, Jim Mullin, founder and CEO of American Resort Communities, has proposed three projects in order to help create more attainable housing. The concept, which involves single-family homeowners that will buy the residence but lease the land from the landowner, will make the housing more affordable (as the sale won’t include the land). The Phoenix Business Journal notes that the company, TerraViva, will “develop the sites with high-end amenities, and the communities will include professional property management and oversight of community events.” Located in Prescott Valley and known as Casa Grande and Sahuarita — according to the Phoenix Business Journal, they will entail single-family manufactured homes costing between $200,000 and $280,000, with those who buy paying rent to the landowner to lease the land.
Elevating an unexpected investment
Whether it’s the red hot housing market, an attempt to escape rising rents, or to finally become a homeowner, many who have found a home have experienced a case of buyer’s remorse due to the short supply. “A lot of buyers ended up in this home that was maybe not what they expected,” says Amanda Pendleton, Zillow’s home trends expert. . For those who have wound up with a fixer-upper, a style that wasn’t what was in mind, or who plan to resell, renovating presents a logical next step. Upgrading the garage door from a roll-up style to a modern sectional is just one simple way to dramatically change the exterior of the home, though it shouldn’t be a DIY endeavor. A1 Garage Door Service reviews highlight the benefits of using a professional service, featuring an overall 4.4 out of five star rating that highlights the timely professionalism, good selection, and friendliness of the service. Making other upgrades, such as adding on a room for a home gym or office can elevate a property while taking post-pandemic design trends into account as well.
The state of Arizona has been dealing with a housing crisis, which has greatly affected those with lower income. While community housing projects aim to tackle the issue, remodeling may present a solution to those who have invested into a home they aren’t necessarily thrilled about — whether the plan is to resell or stay.
