What's Hot

    First Development Planned in Maricopa Industrial Triangle

    May 7, 2025

    Mixed Residential Development Planned in Maricopa

    May 7, 2025

    302 Apartments Proposed on Phoenix-Scottsdale Border

    May 6, 2025
    Facebook Twitter Instagram
    AZBEX
    NEWS TICKER
    • [May 7, 2025] - First Development Planned in Maricopa Industrial Triangle
    • [May 7, 2025] - Mixed Residential Development Planned in Maricopa
    • [May 6, 2025] - 302 Apartments Proposed on Phoenix-Scottsdale Border
    • [May 6, 2025] - U.S. Construction Added 11,000 Jobs in April
    • [May 6, 2025] - Jobsite Safety Can Improve 7x with Best Practices
    • [May 6, 2025] - Industry Professionals 05-06-25
    • [May 6, 2025] - Commercial Real Estate 05-06-25
    • [May 2, 2025] - ASPE Panel Discusses Tariffs, Uncertainty and Optimism
    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

      First Development Planned in Maricopa Industrial Triangle

      May 7, 2025

      Mixed Residential Development Planned in Maricopa

      May 7, 2025

      302 Apartments Proposed on Phoenix-Scottsdale Border

      May 6, 2025

      Coconino Approves Fort Tuthill Park Master Plan

      May 2, 2025

      ASPE Panel Discusses Tariffs, Uncertainty and Optimism

      May 2, 2025

      Small & Disadvantaged Business Transportation EXPO is May 20

      May 2, 2025

      Arizona Water Professionals Remain Hopeful Despite Colorado River Struggles

      April 29, 2025

      Casa Grande Considering More than $65M in New Rec Facilities

      April 29, 2025

      Legislation Would Effectively Strip NIMBYs of Referendum Tool

      February 11, 2025

      2025 Forecast Tries to Clarify an Uncertain Market

      February 7, 2025

      KOREPlex Buckeye Site Quietly Listed For Sale

      January 31, 2025

      Axon Says it will Open Search for New Location

      January 10, 2025

      Phoenix Releases $11.5B, 5-Year CIP with Nearly 1,000 Projects

      April 1, 2025

      Buckeye Starts Planning Bond Funding Outlays

      February 26, 2025

      $400M of Federal Funding in Limbo for Phoenix Plans

      February 14, 2025

      Maricopa CIP Focuses Heavily on Infrastructure

      February 14, 2025

      Commercial Real Estate 05-06-25

      May 6, 2025

      Commercial Real Estate 04-29-25

      April 29, 2025

      Commercial Real Estate 04-22-25

      April 22, 2025

      Commercial Real Estate 04-15-25

      April 15, 2025

      Industry Professionals 05-06-25

      May 6, 2025

      Industry Professionals 04-29-25

      April 29, 2025

      Industry Professionals 04-22-25

      April 22, 2025

      Industry Professionals 04-15-25

      April 15, 2025

      Arizona Projects 05-02-25

      May 2, 2025

      Arizona Projects 04-25-25

      April 26, 2025

      Arizona Projects 04-18-25

      April 18, 2025

      Arizona Projects 04-11-25

      April 11, 2025

      Executive Order Will Streamline Federal Acquisition Regulations System

      April 26, 2025

      Legislation to Save Axon Plan Continues to Advance

      April 16, 2025

      Court Issues Summary Judgment in X Phoenix Case

      April 16, 2025

      House Bill Would Expand LIHTC Credits

      April 15, 2025

      U.S. Construction Added 11,000 Jobs in April

      May 6, 2025

      Jobsite Safety Can Improve 7x with Best Practices

      May 6, 2025

      March Construction Job Openings Down by 38,000

      May 2, 2025

      Ariz. Construction Gained 2,000 Jobs in March

      April 22, 2025

      First Development Planned in Maricopa Industrial Triangle

      May 7, 2025

      Mixed Residential Development Planned in Maricopa

      May 7, 2025

      302 Apartments Proposed on Phoenix-Scottsdale Border

      May 6, 2025

      U.S. Construction Added 11,000 Jobs in April

      May 6, 2025
    • AZBEX
      • Subscribe
      • Classifieds
      • Advertising
    • DATABEX
      • Webinars
      • Monthly Snapshot
    • Events
      • Housing Projects on the Horizon
    • About Us
      • Meet the Company
      • Meet the Sales Team
      • Meet the Editorial Team
      • Meet the BEXperts
    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

    Mixed Residential Development Planned in Maricopa

    May 7, 2025

    302 Apartments Proposed on Phoenix-Scottsdale Border

    May 6, 2025

    ASPE Panel Discusses Tariffs, Uncertainty and Optimism

    May 2, 2025

    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    Our Picks

    First Development Planned in Maricopa Industrial Triangle

    May 7, 2025

    Mixed Residential Development Planned in Maricopa

    May 7, 2025

    302 Apartments Proposed on Phoenix-Scottsdale Border

    May 6, 2025

    U.S. Construction Added 11,000 Jobs in April

    May 6, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • LinkedIn
    • YouTube
    Don't Miss
    Planning & Development

    First Development Planned in Maricopa Industrial Triangle

    May 7, 20250

    Olsson has submitted a proposal for a new industrial park with 9MSF of rail-accessible space…

    Mixed Residential Development Planned in Maricopa

    May 7, 2025

    302 Apartments Proposed on Phoenix-Scottsdale Border

    May 6, 2025

    U.S. Construction Added 11,000 Jobs in April

    May 6, 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

    First Development Planned in Maricopa Industrial Triangle

    May 7, 2025

    Mixed Residential Development Planned in Maricopa

    May 7, 2025

    302 Apartments Proposed on Phoenix-Scottsdale Border

    May 6, 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.