Residents in Gila Valley are facing challenges in affording homes in Graham County without substantial savings, according to a recent housing survey by Grow America for the Southeastern Arizona Government Agency (SEAGO).
During a presentation of the findings, it was revealed that potential homebuyers could structure a 30-year fixed-rate mortgage around $201,824. This still leaves a hefty $42,212 gap to cover the cost of a $300,000 home, especially with a median income of $67,000 and a down payment of 20%, which amounts to $60,000.
Interestingly, that median income aligns closely with average rental costs. If renters are considering that roughly 30% of their income goes toward housing, then the average rent would be about $1,750. This figure is somewhat above current rental prices in Gila Valley.
A significant issue, though, is the shortage of typical rental options, like apartments, which is nudging some into alternative housing solutions—think sharing single-family homes, lengthy hotel stays, or RV park rentals.
The study outlined some barriers to constructing more housing units in the area, based on discussions with real estate professionals and developers. Among these challenges are:
- A protracted approval process
- A limited pool of developers and skilled workers
- High construction material costs in more remote parts of Graham County
- Difficulties in accessing affordable financing
- Poor condition of existing housing stock, making repairs costly
In summary, while the demand may be for larger and pricier homes to appeal to developers, many average residents in Graham County simply can’t afford them.
Lastly, a discussion at Wednesday’s meeting encouraged attendees to suggest the types of housing developments needed and possible locations. The gathered data, along with feedback from interviews and surveys, will help produce reports aimed at attracting developers to the region.
