Community members confront the widening gap for workforce housing at an Arizona Town Hall forum.
Partner and Senior Economist Daniel Court, of Elliott D. Pollack and Company, presented data from a number of grim Arizona housing needs assessments.
Yavapai County’s median income of $66,000 only qualifies for a $240,000 mortgage, well below average market prices, with Zillow’s typical value for a home in Yavapai County in March 2024 at $494,441. Reports show 41% of Yavapai County renters spend 30% of their income on housing, while some pay 50%.
The term “workforce housing” is used to describe households earning 60% to 120% of area median income. Economics say these households earn too much for state or federal assistance, but not enough to affordably rent or purchase market-rate housing. These workforce employees often are considered critical service personnel such as teachers, police officers, firefighters and construction workers.
The lacking element, Court said, is “missing middle” housing, affordable higher density residential projects. What’s needed, he said, are private sector solutions such as duplexes, small lots, townhomes, condos, Accessory Dwelling Units (ADUs) and manufactured homes. These options are multi-units with smaller footprints and moderate densities to blend with local land use.
He said one barrier to these solutions includes infrastructure. Some areas, especially unincorporated areas, lack adequate water and sewer services, and other higher density needs.
Research Analyst Ashley Cooper, with Morrison Institute for Public Policy at Arizona State University, shared data from the second annual State of Housing in Arizona report, published in August, highlighting major findings in the Morrison Institute report to generate discussion among break-out groups.
In 2023, Cooper said, Arizona’s household growth nearly doubled the rate of housing unit creation. It is the second highest housing supply gap in the comparison group of states. Arizona’s cost of living exceeded the national average for the first time in 2023, ranking third behind California and Florida, with housing the key driver. From 2018–2023, Arizona’s rental costs increased 15%, the highest among comparison states. Arizona home values are up 91% since 2010, and 44% since 2018.
Income growth in Arizona from 2010 to 2023 was 12%, but housing value growth was 84%, making homeownership increasingly unattainable for average income earners. Since 2019, median rent costs rose 23%, while median renter income rose only 4%. A minimum wage earner in Arizona would need to work 76 hours per week for a one-bedroom rental. Arizona has more than 14,700 unhoused Arizonans as of 2024, a record high, with 21% being families with children. Unaccompanied youth homelessness is up 42% since 2017.
After hearing these housing statistics, the question facing the varied group of community members on Wednesday was, “How can the ‘housing-lucky’ help the ‘housing-unlucky?’” In breakout discussions, participants discussed four questions, chief among them the role housing plays in creating a vibrant and thriving community.
Brad Fain of Fain Signature Group highlighted the support needed to maintain the services and quality of life in the community, with housing a critical element. “We need more doctors, but I was told for every doctor there’s seven to nine people that support that doctor – nurses, technicians, labs, people to clean the facilities and administrators.”
Fain posed questions such as: “Have you gone to a restaurant and found it to be closed? On the sign it says, ‘no staff.’ Have you known people who have a difficult time finding workforce?”
He noted that school districts recruit staff members, but after a year they leave because they can’t afford a home. “People are struggling to come here and be able to live and work. Whether you’re a citizen, a resident, whether you’re in the public sector, an elected official or you’re in the private sector, I would challenge you to bring your ideas, listen to others and see how we can put it together. You never know where the solution is.”
Attendees agreed that housing is crucial for a thriving community because it affects health care, education, emergency response, diversity and the economy. Participants discussed the need for a broad coalition to address housing issues, involving local governments, economic development organizations, the business community, resident coalitions, property owners, developers, resident coalitions, homeowners’ associations, political leaders and voters, with the emphasis on everyone sharing responsibility across the region.
Discussions included perspectives from high school and college students, information about funding sources, the possibility of repurposing existing buildings for housing and developer tax and permit incentives.
Arizona Town Hall will produce a report from the event, capturing ideas and proposed actions. The forum was sponsored by Fain Signature Group, Pinnacle Bank, The Ranch at Prescott, APS, Dignity Health and Wecom fiber. QCBN
By Heidi Dahms Foster, QCBN
Photo by Heidi Dahms Foster: Yavapai County District 4 Supervisor Chris Kukyno talks with a group of break-out session participants during the Solving the Housing Shortfall event at Espire Sports on Nov. 12.
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