An Arizona Housing Boom or Rural Crisis?

It’s no secret that Arizona’s housing market is booming. Due to this growth however, many communities are now experiencing housing shortages, especially in rural Arizona. The result is a lack of housing available at a price point attainable for the majority of the working class.

In November, a subcommittee of the Community Economic Development Advisory Consortium (CEDAC) met with Ron Corbin with Town of Cottonwood, Joel Canchola with Burns & McDonnell, and Rick Emery with Coconino County Social Services Utility Repair, Replacement, & Deposit (URRD) to tackle this conversation and gain a better understanding of some of the challenges of rural housing development.

New residents and tourists are attracted to both the beauty of the state and the price point of Arizona’s housing market; many are attracted to rural communities to escape the hustle and bustle of the city. This movement is having an impact on community capacity. According to Ron Corbin, Town Manager for Cottonwood, local motels are filling up with long-term renters who have packed up their belongings and moved to the area prior to having housing arrangements; rental properties that used to be homes for local families have been converted to vacation rentals to keep up with the tourist demand; and affordable apartments have a 200 person waiting list with extremely low turnover rates. 

Due to increased demand for new construction in large, metro areas, contractors are opting out of building projects that have more complexities and a longer timeline to take on more enticing new home build projects. Even in areas where there are plans for more affordable housing, these phases of development are getting put on the back burner for the bigger, custom homes that are selling more quickly. Additionally, a lack of skilled tradespeople, coupled with higher priced material costs and seemingly endless red tape make development of affordable housing, rehab and government funded projects, or apprenticeship programs unattractive for contractors. 

“The needs are often there, the difficulty is making the project happen.” - Joel Canchola, Burns & McDonnell

Without affordable housing, the rural workforce is being left out in the cold. Municipalities, private landowners, and developers/construction companies need to get creative with solutions that benefit everyone. Joel Canchola pointed to Public Private Partnership Development Agreements as a potential solution with some momentum in rural communities. With projected growth, Arizona will need 122,000 craft professionals by September 2022. CEDAC is seeking community partners who are interested in investing in rural communities through potential development, creative incentives, and/or construction internships and on-the-job training for students and recent graduates for construction trades. 

For more information email Andy Sinclair at ASinclair@azdes.gov