Arizona’s push to address its affordable housing supply crisis is beginning to pay dividends.
Yardi Matrix, a firm that tracks commercial and multifamily housing projects, noted in a recent report that metro Phoenix ranks among the top 10 cities nationwide for affordable housing units under construction.
While Austin and Miami lead the way with more than 2,500 units in the building phase, Phoenix isn’t far behind with a little more than 1,000 units coming soon.
“Increasing housing options for Arizona’s workforce is the single greatest tool for attracting new and expanding businesses like Axon and Taiwan Semiconductor Manufacturing,” said Arizona Multihousing Association President and CEO Courtney LeVinus. “Our state is helping to lead the nation in housing construction because our continued growth depends on providing homes for workers and families of every budget size.”
Housing Construction Must Continue
Because of the Phoenix area’s explosive growth, housing affordability has been a challenge for policy makers, developers and families in the middle class and below.
But groups like the Arizona Multihousing Association continue to work with leaders to reduce red tape and streamline the development process to increase supply and bring down prices.
Currently, the state is hundreds of thousands of units short of fulfilling its housing needs, especially given the Phoenix region still grows by about 200 people per day. As the Sun Belt swells with people leaving the Rust Belt and Midwest, housing affordability has been a key challenge for many.
Restrictions on water also have forced developers accustomed to building in cities on the outskirts like Buckeye and Queen Creek to find alternative places to build. Many are now seeking smaller parcels within the urban area, serving residents and workers in every industry from nursing to teaching to public safety.
State Tax Credit Drives Housing Increase
Some recent affordable housing developments have taken advantage of federal and state Low Income Housing Tax Credit programs. The state LIHTC program is set to expire this year but has been instrumental in a number of projects around the state.
For instance, Centerline on Glendale by developer Gorman & Co. recently opened with nearly 370 units focused on low- and moderate-income renters. Gorman has other developments in rural parts of the state as well, where just like in the Phoenix area demand outstrips supply.
The Arizona Multihousing Association has urged Gov. Katie Hobbs and state lawmakers to ensure the state tax credit program is renewed in this year’s budget negotiations, to ensure Arizona continues to sit near the top of new affordable housing units coming to the market.
