Affordable Housing Is Statewide Problem

Arizona homes: value increases have outpaced wages...

The Arizona Republic reports that the housing affordability crisis is spreading to smaller cities and towns across the state. Home prices in the state's rural areas are climbing so high that many teachers, firefighters, police officers, nurses, government employees and retail workers can't afford to live there, according to a new Arizona Department of Housing study.

High housing costs are making it difficult for Flagstaff to attract city employees. Payson can't recruit enough new police officers. The increases in prices are attributed to second home buyers, investors and California transplants. In Flagstaff, the median home price is $252,000, Payson at least $163,000, and Sedona is at $454,500.

Greg Holmes, president of Scottsdale based Stardust Development, said "If people have to make long commutes to find affordable housing and pay $3.19 a gallon for gas, they will leave Arizona. This is a statewide crisis that could weaken our economy." More...