Affordability
In theory, a city with many new homes should have affordable housing because of the relationship between supply and demand. If many people demand a home, but the supply is limited, the price of each home increases; as more homes are built, the price decreases. In the case of Phoenix, one would imagine that homes would be very affordable, since the city has been building new residential developments. However, as you’ll see below, many residents of Phoenix cannot afford housing.
The decades between 1970 and today were dismal for housing affordability in Arizona. The number of households in Maricopa County that could afford a median priced home declined from 64 percent in 1970 to 22 percent in 1980. During the next decade, this number increased to 41 percent. . . . This has been particularly hard on families with low incomes. . . .
The majority of homes in the lowest price range, those that are affordable to people earning $20,000 to $25,000 a year, are located near the central core of the city. All of these central area homes are resale [that is, no new homes are being built in the central core].
Source: Arizona State University. Greater Phoenix Regional Atlas: A Preview of the Region’s 50-Year Future, 2003. 55-56.
|
|
Phoenix Region's Housing Values, 1990
|
|
Source (chart): Arizona State University. “What Matters: The Maturing of Greater Phoenix.” School of Public Affairs, College of Public Programs. 2004.
Source (map): Morrison Institute for Public Policy. “Hits and Misses: Fast Growth in Metropolitan Phoenix." September 2000.
--------------------
Questions:
1. In your own words, explain what the two paragraphs are saying.
2. How does Phoenix's Affordability Ranking compare to that of other metropolitan regions? Where is the more affordable housing located?
3. According to this information, it sounds like there’s a shortage of affordable housing on the urban fringe. Some say, ‘so build new affordable housing.’ Who might oppose this solution and for what reasons?
