PHOENIX (By Catherine Reagor
Burrough, Arizona Republic) December 22,
2004 - Beginning teachers, police officers, firefighters and others can't
afford to buy a home in many parts of metro Phoenix.
That reality is the flip side of a years-long boom of appreciation in the nation's No. 1 housing market.
"We are heading toward a real housing crisis," said residential real estate developer Gregg Holmes, president of Stardust Cos.
Holmes is leading a group of business, civic and government leaders who are looking for solutions.
Soaring housing costs and weak income gains have made it harder now for Valley residents to afford a home than any time since 1989.
Many people move farther out to developments built on cheaper land. Those same people make long commutes to jobs in communities where they do not have ties.
Others may be priced out of owning a home entirely.
"Housing is fundamental to everything for people," said Jay Butler, director of the Arizona Real Estate Center at Arizona State University. "When teachers can't afford to live in the communities where they work, there is a real disconnect."
Business leaders also see affordable housing as a key to bringing in higher-wage jobs and companies, Holmes said. Homeownership provides a more stable situation in which children can learn, improving the quality of the workforce, he said.
Despite record home sales across the Phoenix area, the state's homeownership rate has dropped since 2000. This signals that second-home buyers and investors are behind much of the current buying spree and are pushing prices above what actual residents can afford.
The goal of the Regional Task Force on Quality Workforce Housing is to spur development of more homes for households earning $20,000 to $42,000 a year.
The group aims to have a set of recommendations, including a suggested number of affordable homes to be built in all Valley cities over the next 15 years, before the end of next year.
Other recommendations may involve how to eliminate barriers to affordable housing by streamlining the entitlement, permitting, and design and density requirements in effect, he said.
Since 2000, existing-home prices in the Valley have climbed almost 40 percent, to $180,000, according to the Arizona Real Estate Center at Arizona State University. To afford a median-priced existing home, a Phoenix household has to have an annual income of more than $52,000. New homes are pricier and less affordable.
"In Arizona, there are 500,000 people whose salaries are $25,000 or less," Holmes said. "They're starting teachers, nurses, bank tellers and firefighters."
The task force grew out of an affordable-housing summit at the state Capitol last summer.
An estimated 27 percent of all Arizona homeowners and 47 percent of all renters spend more than 30 percent of their income on housing.
Families who spend that much on housing could be scrimping on other essentials such as food, clothing, education, day care and health care, housing experts say.
To help create more affordable workforce housing, Jerry Bisgrove, founder of Scottsdale-based Stardust, donated $20 million to start the Arizona Family Housing Fund.
The housing fund and many other non-profits, civic groups, municipalities and businesses, including developers, utilities and The Arizona Republic, are participating in the task force.
Its first meeting is planned for early February.
Reach the reporter at (602) 444-8040.
That reality is the flip side of a years-long boom of appreciation in the nation's No. 1 housing market.
"We are heading toward a real housing crisis," said residential real estate developer Gregg Holmes, president of Stardust Cos.
Holmes is leading a group of business, civic and government leaders who are looking for solutions.
Soaring housing costs and weak income gains have made it harder now for Valley residents to afford a home than any time since 1989.
Many people move farther out to developments built on cheaper land. Those same people make long commutes to jobs in communities where they do not have ties.
Others may be priced out of owning a home entirely.
"Housing is fundamental to everything for people," said Jay Butler, director of the Arizona Real Estate Center at Arizona State University. "When teachers can't afford to live in the communities where they work, there is a real disconnect."
Business leaders also see affordable housing as a key to bringing in higher-wage jobs and companies, Holmes said. Homeownership provides a more stable situation in which children can learn, improving the quality of the workforce, he said.
Despite record home sales across the Phoenix area, the state's homeownership rate has dropped since 2000. This signals that second-home buyers and investors are behind much of the current buying spree and are pushing prices above what actual residents can afford.
The goal of the Regional Task Force on Quality Workforce Housing is to spur development of more homes for households earning $20,000 to $42,000 a year.
The group aims to have a set of recommendations, including a suggested number of affordable homes to be built in all Valley cities over the next 15 years, before the end of next year.
Other recommendations may involve how to eliminate barriers to affordable housing by streamlining the entitlement, permitting, and design and density requirements in effect, he said.
Since 2000, existing-home prices in the Valley have climbed almost 40 percent, to $180,000, according to the Arizona Real Estate Center at Arizona State University. To afford a median-priced existing home, a Phoenix household has to have an annual income of more than $52,000. New homes are pricier and less affordable.
"In Arizona, there are 500,000 people whose salaries are $25,000 or less," Holmes said. "They're starting teachers, nurses, bank tellers and firefighters."
The task force grew out of an affordable-housing summit at the state Capitol last summer.
An estimated 27 percent of all Arizona homeowners and 47 percent of all renters spend more than 30 percent of their income on housing.
Families who spend that much on housing could be scrimping on other essentials such as food, clothing, education, day care and health care, housing experts say.
To help create more affordable workforce housing, Jerry Bisgrove, founder of Scottsdale-based Stardust, donated $20 million to start the Arizona Family Housing Fund.
The housing fund and many other non-profits, civic groups, municipalities and businesses, including developers, utilities and The Arizona Republic, are participating in the task force.
Its first meeting is planned for early February.
Reach the reporter at (602) 444-8040.
