(The Center Square) – The third quarter housing affordability report from the Common Sense Institute Arizona indicates that there is still not nearly enough supply in the state, and the problem is getting worse.
According to the report, the Grand Canyon State is short 65,721 housing units needed to match the demand, which is a slight uptick of over 2,000 compared with last year.
“The high costs of housing in Arizona are creating significant barriers to homeownership, especially for lower-income families and first-time buyers,” Zachary Milne, Senior Economist and Research Analyst for the institute, said in a statement on the report.
“While minor improvements in mortgage rates have provided some relief, the state’s overall housing deficit continues to widen, reflecting the need for housing policies that boost supply and affordability,” Milne continued.
In Maricopa County alone, the report suggests that there are roughly 46,000 units behind. There is concern that the number of buildings permitted to be built is also going to negatively impact supply. The report adds that it could take a decade to get back on track.
In addition, the study suggests that there is an increase of $80,000 in average home prices in the Grand Canyon State, which is based on the alternative of keeping a “pre-pandemic trend” on prices. The researchers say this leads to roughly a $500 increase in a homeowner’s monthly payment.
“Although prices did fall in July and August, it would still take 41 months for house prices to fall back in line with the 2012-2019 trend if prices continued to decline at this pace,” the report stated.
According to Zillow, the median home sale price in Maricopa County is $460,000 as of August. This is lower compared to parts of 2022, but is still significantly higher since pre-pandemic. The median sales price in Arizona as a whole is just over $440,000, according to Redfin.
