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Currently, 46% of Phoenix residents are considered
extremely low income, very low income or low income;
19% are considered low to moderate income; and 35% are
considered moderate to high income. In our current
housing market, the 65 % of households that fall within or
below the moderate income range would require some
amount of subsidy to achieve housing that is considered
affordable at their income level.
The current trend is to buy out the older mobile home parks for redevelopment and where will these people go ?
Who are the people currently buying new homes ? where are they coming from ? are wages and salaries catching up ? inquiring minds need to know.
If 46% of Phoenix residents are extremely low income, it tells me that 46% of our population has a serious lack of motivation. Likely the same types who moved here because they thought it would be a sunny, warm, laid back place with an affordable cost of living. I will be the first to admit, however, that the gap between the average wages and the overall cost of living is definitely an issue here. Subsidized housing isn't the answer because the result of government assistance is the opposite of a motivator. It only encourages low income people to remain poor & dependent on Big Brother.
The solution is to bring in better jobs, and not just at the service level. Implement tax incentives and eliminate the state income tax to encourage more corporate HQs to locate here. This would also help with attracting more higher skilled, goal oriented people. Those large companies & CEOs should be welcomed because they are job creators, and would offer higher paying, competitive positions.
Tin can housing (a.k.a. mobile home parks) should have been bulldozed years ago & replaced with newer development. I'm glad to see that much of it is finally going away. Here again, mobile homes mainly attract a lower element, and the presence of trailers tend to bring down property values in the area. Affordable housing is not a guaranteed right. People need to realize that Phoenix is no longer the cheap place that it was decades ago, and living here is going to require a more substantial income than it used to. If they can't make it here, there are plenty of smaller towns that are much more affordable.
Friend of mine on social Security had to leave his GF of 18 years after a falling out she owned the home he couldn't find an apartment for less than $1600 a month even in the worst parts of town. I thought he was kidding until I looked and even old dingy studies were $1300. One place over in Tempe didn't even have a sewer system was a composting toilet no running water. I'm not sure if that is even legal or not he is on a waiting list living in his car. Section 8 housing has 2-3 year waiting list and other junky apartments in scaryvale have a 6-8 month wait. He bought an RV to live in but even RV parks are $1000 a month in the winter. The junky apartments who have waiting list require you to pay $150 background check they have no clue when you get a place.
Friend of mine on social Security had to leave his GF of 18 years after a falling out she owned the home he couldn't find an apartment for less than $1600 a month even in the worst parts of town. I thought he was kidding until I looked and even old dingy studies were $1300. One place over in Tempe didn't even have a sewer system was a composting toilet no running water. I'm not sure if that is even legal or not he is on a waiting list living in his car. Section 8 housing has 2-3 year waiting list and other junky apartments in scaryvale have a 6-8 month wait. He bought an RV to live in but even RV parks are $1000 a month in the winter. The junky apartments who have waiting list require you to pay $150 background check they have no clue when you get a place.
Your friend is in an unfortunate situation, and should be looking for a place to live in a cheaper location outside of metro Phoenix. I'd even suggest somewhere like New Mexico if he wants to stay in the western U.S., or maybe one of the states in the Plains, Midwest, or South. Cost of living would be a lot less there, including housing. Quality of life would be reduced, but beggars can't be choosers.
Your friend is in an unfortunate situation, and should be looking for a place to live in a cheaper location outside of metro Phoenix. I'd even suggest somewhere like New Mexico if he wants to stay in the western U.S., or maybe one of the states in the Plains, Midwest, or South. Cost of living would be a lot less there, including housing. Quality of life would be reduced, but beggars can't be choosers.
His plans are to travel with his new RV he bought oddly he was able to qualify for a brand new 20 foot RV. Just needs to get some things out of the way he can hit the road with his new travel trailer. No way ill ever end up relying on SSI ill have my home paid off and no debt with enough money to live off of without social security.
His situation is because of poor decision making the housing situation here is just crazy. The dumps that I saw for rent what they were asking for them was nuts. Few places I would just remove my cat converter and reinstall it when I needed to pass emissions. I doubt it would last a day parked overnight.
The Phx metro will continue to grow. Just over 25% have moved here alone from Southern Cal. since 2020. Phx was the second fastest growing city in the US in 2021. I don't see any of this stopping.
My nephew and his girlfriend just graduated from UC Berkeley. Nephew will earn roughly 70k working for Mastercard and girlfriend... not sure but her salary should be better than ave. They will be living/working in San Francisco where 250k doesn't get you past 2nd base in the housing market.
Nothing wrong with Chandler, Tempe, or Gilbert for a young couple starting out in life and earning 130k.
The current trend is to buy out the older mobile home parks for redevelopment and where will these people go ?
I knew one person living in a mobile park that relocated to Tx. where lot fees are less expensive.
Who are the people currently buying new homes ? where are they coming from ? are wages and salaries catching up ? inquiring minds need to know.
When I started buying investment property in AZ (2005) it was common for the wife to stay home and husband to work. 38k a year was about the average income. Rents were $900-$950 for a single family 3bed/2bath home in Mesa.
Today a 3bed/2bath usually starts at 2k and nobody stays home. (Well, I do have one couple with children renting from me in Gilbert but the husband is a doctor earning 240k a year.)
Who is buying? Right now nobody but with regards to my renters over the past few years: It' been been those who moved here from out of state with money from the sale of a previous home and/or were earning a good salary.
I've got new renters who moved here from Colorado because it was too expensive. Not much cheaper in Mesa they told me.
My friend has met several people who sleep in parking lots in their cars. These are not drug addicts who panhandle although there are some who are many are truly homeless. Most are working class people who just can't see spending 2/3rds of their paycheck to live in an apartment. Some are going to school and working they live minimalist lifestyle most of the time they are at work, or school they just park sleep for 5-6 hours. Oddly enough Walmart really doesn't hassle these people as long don't cause any trouble.
Mobile home parks raised their lease fees so much it's no longer a savings to buy a trailer since you don't own the land. I don't see why anyone would pay 150k - 200k for a new trailer in a park where the lease is $1000-1500 a month. I wonder what these parks will do when interest rates hit 10-12% no one will be buying them parks will be forced to lower their rates.
Rising rent prices (for various reasons), repurposed mobile home parks, etc. will drive people out. Some people on Facebook groups in the Phoenix area seem to be looking for RV parks quite often to live in because of the costs to rent or buy.
I remember being at an apartment complex up there and they started kicking out their Section 8 people because they were going to remodel the complex and sell. Many of those people were mad at all the new non-Section 8 people moving in and we got A LOT of grief. The rent went from around $800ish a month to $1,200. This is Mesa, guys...$1,200 for crime filled living...sad. Had some friends say the same thing was happening to them in Tempe and they had to leave their apartments because they would've owed around $1,500/month.
Some may find a roommate, leave the area completely in search of cheaper housing, etc.
It's not a secret that the valley has homeless problems. It's everywhere! (Rather, it's most places in Arizona).
A lot of the people buying new homes are generally people wanting a home to live in the valley and make the money to do so and let's not forget about the investors. I knew some people that sold their home to investors because they could not resist the full cash offer. A lot of these homes are being purchased and flipped and/or resold on the market. There are people coming from all over that are in Phoenix, I remember seeing a ton of California plates, though. Definitely a lot of people who live in Phoenix and work in California (to afford to keep their job and live somewhere less expensive than California). Got to meet people who would fly to California on a Monday morning, stay there all week in a hotel, and then fly back Friday evening. We met a real estate agent that told us she lived in California, but was doing her real estate stuff in Phoenix.
The wages/salaries in Arizona...will they ever catch up? Unlikely. It is extremely difficult to live on one minimum wage job in Arizona. I've come across people in stores in Phoenix that looked so sleep deprived and it was because they said they were working 2-3 minimum wage jobs by themselves. Rent in Phoenix is downright expensive. I never stayed long enough to want to own a house there. My husband did not have a job that was minimum wage and he got paid much more than where we used to live, but it seemed like it wasn't honestly enough to live comfortably after a little while.
When my husband and I were in Phoenix, we were working so hard trying to keep up with bills and everything. We got messed over with apartment "rubs" that weren't supposed to ever be more than $70/month and were an average of $40 most months as told to us by apartment leasing agents. It was about $70 each time, without fail. When we moved away from there, the electric company called us because they would soon have to send our $400 electric bill to collections after we were certain we had totally paid all of that before we left. We had someone slash all of our tires and had to get a tow and pay for new ones and file a police report, but our wallet sure did take a hit. The tire slashings happened more than once. Never caught the person.
One of the apartment leasing agents tried to argue we didn't pay rent on the online portal when we did - trying to milk another month's rent from us and was mad when we used a receipt to say, "No, we already paid this month's rent." When we were about to move out, a few days before, our renter's insurance policy expired and our apartment threatened to take action in a week or so if we didn't get the policy again, but we never paid to renew because we were leaving and weren't going to pay a whole year more of insurance for a few more days.
I am glad we got out. It was like the nightmare that wasn't ending!!!
My friend has met several people who sleep in parking lots in their cars. These are not drug addicts who panhandle although there are some who are many are truly homeless. Most are working class people who just can't see spending 2/3rds of their paycheck to live in an apartment. Some are going to school and working they live minimalist lifestyle most of the time they are at work, or school they just park sleep for 5-6 hours. Oddly enough Walmart really doesn't hassle these people as long don't cause any trouble.
Mobile home parks raised their lease fees so much it's no longer a savings to buy a trailer since you don't own the land. I don't see why anyone would pay 150k - 200k for a new trailer in a park where the lease is $1000-1500 a month. I wonder what these parks will do when interest rates hit 10-12% no one will be buying them parks will be forced to lower their rates.
Why not just move? I'd rather live in a small house in rural Alabama with a low COL than sleep in my car during 115 summers. Sounds foolish to me.
Tin can housing (a.k.a. mobile home parks) should have been bulldozed years ago & replaced with newer development. I'm glad to see that much of it is finally going away. Here again, mobile homes mainly attract a lower element, and the presence of trailers tends to bring down property values in the area. Affordable housing is not a guaranteed right. People need to realize that Phoenix is no longer the cheap place that it was decades ago, and living here is going to require a more substantial income than it used to. If they can't make it here, there are plenty of smaller towns that are much more affordable.[/quote]
Congress, Florence, Aguila, Morristown, Wittman, and Tonapah, these towns are inexpensive, and instead of buying a new 68 K mobile home in one of the huge never-ending 55+ mobile home parks in Mesa, people can just commute for an hour or more each way to their job.
Companies like CAM properties and Treehouse communities buy older Apts ( HUD - low income accepted ) and Mobile home parks and invest very very little but excel at booting out the poor and undesirable. They are good at raising rents though. Once they remove and bulldoze they install a newly manufactured one or two-bed Mobile home and put up a for sale sign. They also keep a few spaces open for the annual snowbird migration raise the lot rent and increase your REIT portfolio.
So for all of the unfortunate, elderly, and lazy legal weed bad decision-makers, your misfortune is increasing my IRA and 401K appreciate it.
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Congress or Florence
