In a recent conversation on the subject of affordable housing, I found that many didn’t know the definition of affordable housing. It somehow seems to be thought of as low-income housing. Affordable housing, since 1981, is defined as 30% of one’s income. If the average or majority of households keep their housing/non-discretionary spending at 30%, there is money to spend on other goods which overall helps our economy. This topic goes hand-in-hand with homeownership. If you are locked into a mortgage for 30 years, you won’t be burdened with rent increases.
On another note, according to the Cromford report, our general market area which is the greater Phoenix area, has reached a new high of $308 a square ft. Even with all the negative projection of higher interest rates, the cost of homes keeps climbing because of a shortage of inventory.
