<body><div><figure><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=1aT9Zp_1H6Gi05T00" alt="https://img.particlenews.com/image.php?url=1aT9Zp_1H6Gi05T00" width="2008" height="1019" ><figcaption>The remainder of the Housing Trust Fund that City Council established will be spent in these categories, the city administration outlined last week. (City of Phoenix)</figcaption></figure>Phoenix has exceeded its goal of creating or preserving 50,000 housing units by 2030, reporting more than 71,000 units six years after launching an initiative to expand the city's housing supply.But the city's latest figures also illustrate a continuing problem: Most of the housing added since the initiative began has been market-rate or workforce housing, while Phoenix faces an estimated shortage of 59,000 affordable rental units for lower-income households.The contrasting figures were presented to City Council Oct. 27 as officials reviewed the Housing Phoenix Plan and discussed how to distribute approximately $15 million available through the city's Housing Trust Fund.According to the city's latest quarterly report, Phoenix had created or preserved 71,128 housing units as of September, surpassing its original target by 21,128 units, or approximately 42%.The goal was established in June 2020, when Council adopted the Housing Phoenix Plan to encourage construction, remove development obstacles and increase housing options for residents at different income levels."We have far surpassed that. We're now at more than 71,000 homes and years ahead of our goal. But we are not stopping. We know the need continues," Mayor Kate Gallego said.The city's reported total includes 40,071 market-rate units and 17,584 workforce housing units, along with 7,110 newly created affordable units and 6,363 existing affordable units preserved through city programs.Together, the affordable units created or preserved represent approximately 19% of the total.Housing Director Titus Mathew said that proportion has increased significantly."Several years ago, it was less than 10%," he told the council. "That's a significant milestone we want to highlight as well."The numbers reflect housing created or preserved rather than construction starts. The city bases its new-unit figures on certificates of occupancy dating to October 2019, while its preservation figures include programs intended to maintain existing housing or help residents retain access to it.The distinction is significant because preserving an affordable apartment does not add another dwelling to the city's housing supply, although it can prevent an existing affordable option from disappearing.The report also does not establish that the city's housing initiatives directly caused all the construction included in the totals.Nevertheless, the figures indicate substantial housing development during a period when rising housing costs have become a major concern for Phoenix residents.The city's 2024 Housing Needs Assessment identified a shortage of approximately 59,000 affordable and available rental units for households earning no more than half the area's median income.Mathew offered an illustration of the affordability problem.He said a three-person household earning approximately $51,000 annually could afford about $1,300 a month in housing costs.But the average monthly rent in Phoenix is approximately $1,800, he said, while the median home price is about $445,000, with an estimated monthly mortgage payment of $3,500."Our current housing prices exceed what is affordable for a household at this income level," Mathew said.The 59,000-unit shortage is not directly comparable to the 71,128-unit production and preservation total. The two figures measure different things: overall housing activity since 2019 and the availability of affordable rentals to a particular income group.The disparity helps explain why city officials are continuing to pursue affordable-housing programs despite exceeding the broader production goal.One of the principal tools is the Housing Trust Fund, established by the council in May 2025 to help finance affordable housing development and preservation.The city's 2026-27 budget included a one-time $6.6 million contribution to the fund, bringing its available resources to approximately $15 million.At the Oct. 27 policy session, staff presented a proposed allocation of $12 million for housing development, homeownership assistance and eviction prevention. Another $3 million had previously been designated for housing-related permitting assistance and preapproved housing plans.Under the proposal, $6 million would support financing for affordable-housing development projects, while another $4 million would assist city-sponsored housing projects.An additional $1 million would support homeownership assistance, and $1 million would be directed toward eviction prevention.The development money would help fill financing gaps that can prevent affordable-housing projects from proceeding.The council also addressed the need to expand housing choices beyond conventional apartment developments.Councilwoman Debra Stark said the city should concentrate more attention on less expensive homes that residents can purchase."Clearly, I think we do a good job of higher end housing, but we really do need to look at how we can get people into homes, and that starts with making sure that we have starter homes and middle housing," Stark said.Other council discussion focused on zoning changes that could allow smaller lots, different housing configurations and additional development by nonprofits.Planning officials said they are reviewing zoning, subdivision and building regulations to identify changes that could make additional housing options feasible.The city also is working with Arizona State University on a middle-housing study, with a report expected next spring.Council members questioned whether the city should establish a more ambitious housing-production target now that it has exceeded its original goal.Mathew suggested revisiting the broader Housing Phoenix Plan in 2030, noting that several of its nine policy initiatives remain unfinished.Councilwoman Anne O’Brien praised the unanimous approval of a $15 million plan to further the city’s home affordability goals.“This vote impacts every resident because stable housing is the foundation of a healthy city,” she said. “There's a lot to like in this plan, including support for home ownership and eviction prevention. I'm especially focused on how we get more housing built by cutting red tape and reducing barriers and $10 million of the $15 million goes to gap financing and low-interest loans to move projects forward; $2 million reduces plan review and permit fees for qualifying development, and $1 million creates pre-approved plans for single-family and middle housing, like duplexes and townhomes, to expedite permits and get more housing options on the market faster. “Fees don't build homes, and a project stalled for lack of gap payment financing or an approval path doesn't house anyone,” O’Brien continued. “This is the work I push for in my housing solutions plan, and I'm glad to see it here. “I also want to be candid about this investment. It includes $6.6 million in one-time money from a General Fund surplus. Builders, nonprofits, and lenders plan years ahead, and they need to know what will be available. I'd like to work with everyone here, mayor, and my council colleagues on a permanent annual funding source.”</div></body>

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Phoenix has exceeded its goal of creating or preserving 50,000 housing units by 2030, reporting more than 71,000 units six years after launching an initiative to expand the city's housing supply. But the city's latest figures also illustrate a continuing problem: Most of the housing added since the initiative began...

Affordability clouds city’s housing success

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Phoenix has exceeded its goal of creating or preserving 50,000 housing units by 2030, reporting more than 71,000 units six years after launching an initiat

Affordability clouds city’s housing success

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