The rising imbalance between supply and demand is a persistent problem that affects not only US states but also other nations worldwide. Arizona is no different from other states. The demand for affordable housing rises along with the population. Nevertheless, the supply rates continue to be insufficient to meet the needs of the population. Arizona is frequently featured in the news due to evictions and displacements, and Maxwell Drever notes that fast action is required.
People all around the state are constantly talking about it, so it is clear how serious the affordable housing crisis is. For instance, Maricopa County welcomed 86,280 new citizens in 2021, the most of any US state. Despite this, there are still not enough cheap housing units available, which makes things worse for both existing and incoming people. Numerous more difficulties are emerging as a result of these challenges.
Maxwell Drever points out that a thorough analysis of the current situation is necessary to better comprehend the current dilemma in access to affordable housing.
Growing Gaps between Supply And Demand per Maxwell Drever
The United States has a national problem with this. It is more prevalent in Arizona than in many other states. Maxwell Drever claims that it is a challenge that efforts to provide cheap housing face everywhere in the world. Even though there are more people looking for inexpensive lodging, there isn’t enough of it available. Due to the disruption of the world’s supply chains and the resulting rise in material and labor costs, contractors are unable to construct homes at “affordable” prices.
In the 2000s, the state of Arizona constructed 486,000 homes. This amount nearly fell in half over the following ten years, with only 240,000 units constructed. These figures are remarkably low considering the number of people who enter Arizona each year, which is around 90,000. With a current ratio of just 4.7%, the state’s rental vacancy rates are at their lowest point of this century. Renters are fiercely vying for affordable home options as a result.
In addition to pricing, a significant production slowdown has been caused by supply chain problems. Due to a number of circumstances, such as processing, late arrival of raw materials, and other procedures taking longer than usual, construction timelines have increased dramatically. The project’s completion and handover have been put off as a result. According to Maxwell Drever, every day that the renovation is put off results in more rent and labor expenses, which ultimately drives up the cost of the property.
Similar Issues Affect Initiatives That Are Supported by the Government, States Maxwell Drever
Government-funded initiatives for affordable housing have failed to change with the times. The main source of funding for affordable housing is the Low-Income Housing Tax Credit program, which the US government launched in 1986. However, many of the recipients of the institution’s credit have said that the agency’s stringent requirements have rendered their projects no longer commercially feasible.
According to Maxwell Drever, efforts to build more affordable housing have been significantly impacted by the rising cost of construction supplies and labor. This has made it extremely difficult for potential buyers to build the home of their dreams.