New affordable housing communities provide hope amidst the Phoenix housing crisis.
Phoenix is facing a housing crisis with rising prices and interest rates, but new affordable developments are offering hope. Dream Finders Homes is building quality homes under $350,000, and additional projects aim to add more affordable units. The city’s commitment and new initiatives provide crucial support for families seeking stable housing options.
Phoenix is feeling the heat of a housing crisis that has many residents struggling to find a place to call home. With home prices skyrocketing and mortgage rates hovering around 6.8%, many are left asking how they can ever afford to buy a home. The median price for a house in the Phoenix metropolitan area is now approximately $459,000, which puts a significant dent in the plans of potential homebuyers.
Fortunately, *a new player has entered the field*. Dream Finders Homes, a Florida-based developer, is stepping into the Arizona market with a mission: to build quality homes priced under $350,000. They believe that everyone deserves a shot at the American Dream of homeownership without breaking the bank. Their first development in Arizona is called Rancho Mirage, located in the growing city of Maricopa. This community features 123 new homes, offering a variety of floor plans to suit different needs and budgets. One of the featured homes is a spacious 1,593 square feet, and you can snag it starting at just $319,000, with another option priced at $339,000.
These lower home prices are attracting a diverse crowd. You have families relocating for jobs, first-time buyers, and even those transitioning from renting apartments now eyeing a more permanent residence. With increasing demand for affordable housing, Conner Devereaux from Homes.com notes that the timing is crucial. The availability of these homes couldn’t come at a better moment, given the rising prices and mortgage rates that have been climbing over the past four years. More often than not, these factors create barriers for aspiring homeowners.
In addition to Rancho Mirage, Dream Finders Homes has big plans in the pipeline. They are eyeing opportunities to build seven more affordable communities around metro Phoenix in places like Goodyear, Surprise, Buckeye, Mesa, and San Tan Valley. Their ability to offer lower prices is due in part to high volume sales and incentives, which create favorable conditions for economies of scale.
But wait, there’s more! A separate $20 million project by Pennrose aims to introduce 64 units of affordable housing in the vibrant Roosevelt Row area. This initiative is a response to the city’s request for proposals to utilize vacant land in downtown Phoenix, offering hopeful renters a chance to afford a place to live. For housing to be considered “affordable,” it should not exceed one-third of a tenant’s income, and the proposed units would maintain this affordability for a whopping 40 years, if approved.
Let’s not forget about the central part of the city. According to the latest data, central Phoenix had an average asking rent of $1,583. With such prices, the demand for affordable housing is evident. Recently, the opening of Acacia Heights II adds another layer of good news, introducing 66 affordable units to central Phoenix. The rent for these units will be set according to household income, with 57 units specifically targeting families earning 40-60% of the Area Median Income (AMI). Depending on the size of the unit, rent can range from about $770 to $1,600.
Maricopa County is taking these challenges seriously and has committed a generous $500 million to affordable housing initiatives. This includes recent allocations of $17 million to help create over 600 housing units throughout the Valley. Acacia Heights is a star example of this commitment. The first phase opened in 2021, and the final phase is expected to be completed by the end of this year, bringing the total to a remarkable 212 units.
Local officials are keenly aware of the importance of affordable housing solutions for families in the area. As market conditions change and more projects break ground, there’s hope on the horizon for those struggling to find a place to live in this bustling city.
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