City Council Work Session Municipal Court and Council Chambers 14455 W. Van Buren St., Suite B101 Goodyear, AZ 85338 |
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CALL TO ORDER
Mayor Pizzillo called the Work Session to order at 5:00 p.m.
ROLL CALL
- Present:
- Mayor Joe Pizzillo; Vice Mayor Brannon Hampton; Councilmember Sheri Lauritano; Councilmember Wally Campbell; Councilmember Bill Stipp; Councilmember Laura Kaino; Councilmember Patrick Bray
- Staff Present:
- City Manager Julie Karins; City Attorney Roric Massey; City Clerk Darcie McCracken
| AGENDA ITEMS FOR DISCUSSION |
1.
PHOENIX HOUSING MARKET SUPPLY AND DEMAND ANALYSIS
Economic Development Deputy Director Harry Paxton introduced Nico Howard from Home Arizona. Mr. Howard gave a brief background of Home Arizona and the current state of the greater Phoenix housing market.
Mr. Howard then introduced Elliott Pollack of Elliott D. Pollack and Company. Mr. Pollack provided data on the current market for homes and spoke about the shortage of inventory for available homes. He spoke about the diminishing housing affordability in the greater Phoenix area and explained that housing prices have increased 198% since the 2000s. He added that rent prices have also continued to increase. Mr. Pollack reviewed affordability by occupation which showed that in 2021 only higher income occupations could afford a 1-bedroom apartment. He also reviewed the consequences of the high market demand which included fewer potential buyers, fewer owners and more renters, smaller homes with higher density, more homelessness and slower growth for the economy as a whole with less income growth. In his ending statements, Mr. Pollack expressed the need for approximately 42,000 new units per year to be built. He concluded that affordability is falling, there is no vacancy or supply available and supply is not keeping up with demand. He added that the ability to attract jobs and people have not been matched with sufficient housing and a continued shortage of housing will drive costs up and will threaten economic development.
Council discussed the increase in housing prices and affordability, continuing to provide more multi-family housing for the community and being a part of the solution to the housing concern.
In response to Council inquiry regarding how other regions are doing, Mr. Pollack responded that the supply-demand imbalance is greater in our region primarily due to the rising increase in population growth and increase in housing prices. He added that he can provide research and data including demographic information on apartment occupants.
City Manager Julie Karins spoke about current multi-family housing in Goodyear being about 18% with average rent of $1700 per month and a 96% occupancy rate and 20 applications for every apartment in the region.
Council provided consensus to conduct a Work Session with Homebuilders Assocations for discussion on solutions for addressing the housing concern.
Mr. Howard then introduced Elliott Pollack of Elliott D. Pollack and Company. Mr. Pollack provided data on the current market for homes and spoke about the shortage of inventory for available homes. He spoke about the diminishing housing affordability in the greater Phoenix area and explained that housing prices have increased 198% since the 2000s. He added that rent prices have also continued to increase. Mr. Pollack reviewed affordability by occupation which showed that in 2021 only higher income occupations could afford a 1-bedroom apartment. He also reviewed the consequences of the high market demand which included fewer potential buyers, fewer owners and more renters, smaller homes with higher density, more homelessness and slower growth for the economy as a whole with less income growth. In his ending statements, Mr. Pollack expressed the need for approximately 42,000 new units per year to be built. He concluded that affordability is falling, there is no vacancy or supply available and supply is not keeping up with demand. He added that the ability to attract jobs and people have not been matched with sufficient housing and a continued shortage of housing will drive costs up and will threaten economic development.
Council discussed the increase in housing prices and affordability, continuing to provide more multi-family housing for the community and being a part of the solution to the housing concern.
In response to Council inquiry regarding how other regions are doing, Mr. Pollack responded that the supply-demand imbalance is greater in our region primarily due to the rising increase in population growth and increase in housing prices. He added that he can provide research and data including demographic information on apartment occupants.
City Manager Julie Karins spoke about current multi-family housing in Goodyear being about 18% with average rent of $1700 per month and a 96% occupancy rate and 20 applications for every apartment in the region.
Council provided consensus to conduct a Work Session with Homebuilders Assocations for discussion on solutions for addressing the housing concern.
| ADJOURNMENT |
There being no further business to discuss, Mayor Pizzillo adjourned the Work Session at 5:48 p.m.
| __________________________ Darcie McCracken, City Clerk |
__________________________ Joe Pizzillo, Mayor |
Date:___________________ |