SAFFORD — The average Gila Valley resident can’t afford to buy a home in Graham County without a significant amount of savings.
That was one of the conclusions from the recent Graham County housing survey conducted by Grow America for Southeastern Arizona Governments Organization (SEAGO).
During Wednesday’s presentations on the survey’s findings, Grow America showed that to buy a $300,000 home with 2-percent closing costs, with Graham County’s median income of $67,000 and a 20 percent ($60,000) down payment, a borrower could get a 30-year fixed-rate mortgage of $201,824, leaving a gap of $42,212.
However, the median income does match up with average rentals. If no more than 30 percent of income should be used for rent and utilities, the average rent should be $1,750, which is slightly higher than most rents currently in the Gila Valley.
There is, however, a lack of typical rental inventory such as apartments, forcing transients into alternative housing, such as sharing rent on single-family homes, using hotel rooms for long-term stays and renting in RV parks.
The study, combined with discussions with realtors and developers, showed the challenges to developing more housing units in the Gila Valley, including:
- Very slow permitting process
- Limited number of developers and skilled trades people
- High costs of construction materials due to Graham County’s remote location
- Lack of access to affordable capital
- The existing housing stock is perceived as poor condition, making it cost-prohibitive to restore and rehabilitate
The resulting conclusion is that larger, expensive homes need to be built to be profitable for developers, but the average Graham County resident can’t afford the larger home.
Wednesday’s meetings also asked participants to recommend what type of, and where, development should take place. That data combined with the interviews and the study, will be combined into a report that could be used to help attract developers to the area.
