What's Hot

    TSMC Building Water Reclamation Plant

    September 3, 2025

    Pinal Airpark Gets OK, Funding for Air Traffic Tower

    September 3, 2025

    336 Apartments Coming to Casa Grande Commons

    September 2, 2025
    Facebook Twitter Instagram
    AZBEX
    NEWS TICKER
    • [September 3, 2025] - TSMC Building Water Reclamation Plant
    • [September 3, 2025] - Pinal Airpark Gets OK, Funding for Air Traffic Tower
    • [September 2, 2025] - 336 Apartments Coming to Casa Grande Commons
    • [September 2, 2025] - HonorHealth to Build on Former Amkor Site in Vistancia
    • [September 2, 2025] - Environmentalists Sue ADWR Over Benson-Area Developments
    • [September 2, 2025] - Industry Professionals 09-02-25
    • [September 2, 2025] - Commercial Real Estate 09-02-25
    • [August 29, 2025] - 160-Unit Multifamily Planned at 13th St. & Madison in Phoenix
    Facebook Twitter YouTube LinkedIn
    • Home
    • News
      1. View Latest
      2. Planning & Development
      3. Local News
      4. Classifieds
      5. Editorial Analysis
      6. Budgets & Funding
      7. Commercial Real Estate
      8. People on the Move
      9. Arizona Projects
      10. Legislation & Regulations
      11. Trends

      TSMC Building Water Reclamation Plant

      September 3, 2025

      Pinal Airpark Gets OK, Funding for Air Traffic Tower

      September 3, 2025

      336 Apartments Coming to Casa Grande Commons

      September 2, 2025

      160-Unit Multifamily Planned at 13th St. & Madison in Phoenix

      August 29, 2025

      HonorHealth to Build on Former Amkor Site in Vistancia

      September 2, 2025

      Buckeye City Council Discusses Annexing Land for Community Master Plan

      August 29, 2025

      Round 3 of BuildItAZ Grants Announced

      August 26, 2025

      Magazine Tackles Construction Crisis by Inspiring Teen Girls to Enter Skilled Trades

      August 22, 2025

      Scottsdale Hospitals War May Heat Up with New Banner Request

      July 29, 2025

      Glendale Voters to Determine VAI Resort’s Fate

      May 16, 2025

      Legislation Would Effectively Strip NIMBYs of Referendum Tool

      February 11, 2025

      2025 Forecast Tries to Clarify an Uncertain Market

      February 7, 2025

      RTA Funding Proposal Stirs Controversy

      August 15, 2025

      Ariz. LIHTC to Sunset Under New Budget

      July 8, 2025

      State Government Shutdown Averted as Hobbs Signs Budget

      July 1, 2025

      Arterial Life Cycle Program Covers 20 Years of Street Development

      June 27, 2025

      Commercial Real Estate 09-02-25

      September 2, 2025

      Commercial Real Estate 08-26-25

      August 26, 2025

      Commercial Real Estate 08-19-25

      August 19, 2025

      Commercial Real Estate 08-12-25

      August 12, 2025

      Industry Professionals 09-02-25

      September 2, 2025

      Industry Professionals 08-26-25

      August 26, 2025

      Industry Professionals 08-19-25

      August 19, 2025

      Industry Professionals 08-12-25

      August 12, 2025

      Arizona Projects 08-29-25

      August 29, 2025

      Arizona Projects 08-22-25

      August 22, 2025

      Arizona Projects 08-15-25

      August 15, 2025

      Arizona Projects 08-08-25

      August 8, 2025

      Environmentalists Sue ADWR Over Benson-Area Developments

      September 2, 2025

      Pima County Latest to Amend Zoning for Data Centers

      August 22, 2025

      Tucson City Council Likely to Approve Water Restriction on Large

      August 19, 2025

      Ritz-Carlton Paradise Valley Fight Could End in Foreclosure

      August 15, 2025

      Ariz. Construction Lost 400 Jobs in July

      August 19, 2025

      Experts Share on the Latest Industrial Trends at BEX Panel

      August 15, 2025

      Multifamily Developer Confidence Up in Q2

      August 12, 2025

      Ariz. Construction Gained 600 Jobs in June

      July 22, 2025

      TSMC Building Water Reclamation Plant

      September 3, 2025

      Pinal Airpark Gets OK, Funding for Air Traffic Tower

      September 3, 2025

      336 Apartments Coming to Casa Grande Commons

      September 2, 2025

      HonorHealth to Build on Former Amkor Site in Vistancia

      September 2, 2025
    • AZBEX
      • Subscribe
      • Solicitations
      • Classifieds
      • Advertising
    • DATABEX
      • DATABEX Log-In
      • Webinars
      • Monthly Snapshot
    • Events
      • 2025 Hospitality LMS
      • 2025 Public Works Conference
    • About Us
      • Meet the Company
      • Meet the Sales Team
      • Meet the Editorial Team
      • Meet the BEXperts
    • CIP Special Report
    AZBEX
    Home » Local News » Tempe Affordability Study Reveals Problems
    Local News

    Tempe Affordability Study Reveals Problems

    BEX StaffBy BEX StaffJanuary 2, 2023No Comments3 Mins Read
    Credit: State Press
    Share
    Facebook Twitter LinkedIn Pinterest Email

    A new City-commissioned report from Matrix Design Group shows Tempe’s efforts to improve affordable housing stocks have not been able to keep up with surging prices.

    Tempe’s occupied rental market has a smaller percentage of affordable units than any similarly sized college town in the study. The study concludes that Tempe will have to more than double the number of lower-income units to address what it calls a “severe deficit.” Those towns have at least 80% of their apartments renting at affordable rates for people earning less than $63K.

    Tempe’s share is just 26%, and the city’s 93% residential occupancy rate means few options exist among existing supplies.

    With students making up a major share of Tempe’s economy, there could be significant repercussions if those students are forced to live, work and play in other parts of the Valley because they cannot find affordable space in Tempe.

    Officials, including Mayor Corey Woods, are also worried that the lack of affordable options may impact essential workers like public safety staff and teachers.

    Tempe has several initiatives in place to add to its affordable unit count and hopes to reduce its deficit by 75% over the next 20 years. Those initiatives include partnerships with developers and the Hometown for All campaign launched to generate funding for City-owned/controlled affordable housing development.

    Hometown for All lets developers create a “public benefit” when proposing new projects. They make a donation to the program, which is then routed to a non-profit developer called the Tempe Coalition for Affordable Housing. TCAH then uses the funds to establish affordable units on neglected or empty sites. In addition to developer contributions, Tempe puts 50% of new project permitting fees into the program.

    Tempe wants to create 11,000 affordable units by 2040, but its current rate of development is four times slower than necessary to reach the goal.

    Roughly 50% of the city’s housing inventory is considered “workforce,” which is affordable for households making between $63K and $93K/year. The city’s income demographics, however, lean toward lower-income residents who earn less than the $30 hourly rate needed to afford a workforce unit. Only about a quarter of the units in Tempe is affordable for that population.

    The study cites the COVID pandemic as a key contributor to reduced affordability in the Valley. While incomes have remained largely the same over the past decade, the pandemic and other factors have increased home prices by more than 150%. The price increase, combined with the high occupancy rate, means Tempe must build more rental units if it means to improve affordability.

    To fully adjust to the deficit it currently faces, Tempe will have to double its lower-income rental market inventory from its current 13,000 units to approximately 28,000.

    Since the Hometown for All program was announced in 2021, it has created 59 affordable units. Another 395 are in development and planning. Other efforts have created 225 mid- and low-income units.

    Including planned units, Tempe’s efforts are currently on pace to deliver 136 units per year. To reach its goals, that will have to increase to 550 units. (Source)

    affordable housing apartments/condos City of Tempe Corey Woods COVID developer incentives Hometown for All Matrix Design Group multifamily occupancy rate pandemic TCAH Tempe Coalition for Affordable Housing
    Share. Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Tumblr Email

    Related Posts

    336 Apartments Coming to Casa Grande Commons

    September 2, 2025

    HonorHealth to Build on Former Amkor Site in Vistancia

    September 2, 2025

    160-Unit Multifamily Planned at 13th St. & Madison in Phoenix

    August 29, 2025

    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    Our Picks

    TSMC Building Water Reclamation Plant

    September 3, 2025

    Pinal Airpark Gets OK, Funding for Air Traffic Tower

    September 3, 2025

    336 Apartments Coming to Casa Grande Commons

    September 2, 2025

    HonorHealth to Build on Former Amkor Site in Vistancia

    September 2, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • LinkedIn
    • YouTube
    Don't Miss
    Planning & Development

    TSMC Building Water Reclamation Plant

    September 3, 20250

    Taiwan Semiconductor Manufacturing Company has broken ground on a 15-acre water reclamation plant to increase…

    Pinal Airpark Gets OK, Funding for Air Traffic Tower

    September 3, 2025

    336 Apartments Coming to Casa Grande Commons

    September 2, 2025

    HonorHealth to Build on Former Amkor Site in Vistancia

    September 2, 2025

    BEX serves architecture, engineering and construction firms as well as all the ancillary product and service categories that market to them. These include manufacturing representatives, public agencies and private real estate organizations, specialty subcontractors and services providers related to our industry.

    Our Picks

    TSMC Building Water Reclamation Plant

    September 3, 2025

    Pinal Airpark Gets OK, Funding for Air Traffic Tower

    September 3, 2025

    336 Apartments Coming to Casa Grande Commons

    September 2, 2025
    Contact Us

    Phone: 480-709-4190
    Address: P.O. Box 12196 Tempe, AZ 85284
    Email: sales@azbex.com

    Type above and press Enter to search. Press Esc to cancel.