TEMPE, AZ — The struggle for affordable housing has been an issue in Arizona for some time as costs have skyrocketed. A recent report from Arizona State University sheds light on how much people need to earn to live in the Grand Canyon State.
John Martinez told ABC15 that he has lived in the same downtown Phoenix apartment complex since 2018. His rent has steadily increased since he moved in.
“I used to pay $1,300 for the same one-bedroom apartment. Now I’m paying $2,300 for the same apartment,” Martinez said, adding that he knows how expensive downtown is and wants to settle there as Phoenix continues to boom.
According to a new report from the Morrison Institute for Public Policy with ASU, rents increased by nearly 72% between 2010 and 2022.
It states that minimum wage earners would have to work 86 hours a week or have more than two full-time jobs to afford a two-bedroom home.
“The cost of renting was about $3,000 higher than the cost of owning a home in 2023, and that’s for renters, who tend to earn about $33,000 less per year than homeowners. So you see this kind of inequality between renters and homeowners,” said Alison Cook-Davis, research director at the Morrison Institute for Public Policy and co-director of the Arizona Research Center for Housing, Equity and Sustainability (ARCHES).
Cook-Davis said fewer homeowners are suffering from cost stress because some refinanced at the start of the pandemic. But it’s more difficult for people looking to buy a home for the first time.
The report states that the median sales price of a home increased by 57% from April 2019 to April 2023 and now costs more than $423,000. People of color find it difficult to buy a home due to their lower income, according to the report.
“It’s no surprise that people of color have historically been unable to achieve higher wages,” said Patricia Garcia Duarte, vice president of homeownership initiatives at Chicanos Por La Causa. “When you start below a certain income level, it’s that much harder to catch up. That’s why we need intervention.””
Chicanos Por La Causa is a nonprofit that helps on several fronts, including finding assistance with rent or mortgage. Garcia Duarte said the need is consistent, but not as great as it was during the pandemic.
In their opinion, the necessary measures are only just beginning.
“More purpose in developing entry-level housing. More housing units that are affordable for workers. More home ownership products that are attainable for workers, that’s what we need to focus on,” she said.
Cook-Davis said other measures to address the housing crisis have been passed in the last two legislative sessions, including a bill Gov. Katie Hobbs signed over the summer that allows homeowners in Arizona cities to build casitas, or accessory dwelling units, in their backyards.
There are other programs now in place, including another one that Chicanos Por La Causa is helping with. It’s called the Arizona Is Home program, and it’s run in partnership with the Arizona Department of Housing to assist first-time home buyers. It would include financial help to cover a down payment or closing costs.
“These parts will probably help improve the supply, whether it’s enough. I think we’ll have to wait and find out,” Cook-Davis said.
The 48-page report covered other housing issues in Arizona, including homelessness, evictions and the impact of heat on the market. You can view the full report here.
