When you hear “affordable housing,” what comes to mind? For many Arizonans, the term conjures stereotypes of dilapidated complexes or government handouts. But let’s redefine it: Affordable housing is simply housing that costs no more than 30% of a household’s income. It’s the apartment a Phoenix teacher can rent without working a second job, the starter home a Flagstaff nurse can buy near her workplace, and the senior living complex where a Tucson retiree isn’t forced to choose between groceries and rent.

This isn’t about “those people.” It’s about us. Nearly half of Arizona renters are “cost-burdened,” spending over 30% of their income on housing. Teachers, firefighters, baristas and delivery drivers — people who keep our economy running — are being priced out of their own communities. 

In 2023, of the close to 50,000 units permitted in Arizona, only 8.5% of those were affordable housing units. We’re building more, but less for the people who need it most.

This crisis demands urgency, creativity and political courage. Arizona’s leaders must act now to renew critical tools, expand proven solutions, and unlock innovative pathways to housing. Here’s how:

Stabilize Leadership: Renew the Department of Housing
First, lawmakers must pass SB1357 to renew ADOH for four years. This agency is the backbone of Arizona’s fight against the housing crisis, coordinating federal grants, developer partnerships, and programs that keep roofs over families’ heads. In 2024, ADOH delivered $1.24 billion in aid, financing more than 4,300 affordable units and preventing foreclosures for thousands. A House bill that has crossed to the Senate this week proposes a single-year renewal, but federal programs demand long-term stability — housing projects take years, and short-term extensions risk deterring builders, investors and lenders. A one-year timeline forces ADOH to prioritize survival over solutions like converting hotels into housing or rehabilitating homes for seniors.

Expand the State Low-Income Housing Tax Credit Program: Fuel for Affordable Development
Arizona’s affordable housing crisis demands bold investment — and the state Low-Income Housing Tax Credit program delivers. A 2025 study that the Arizona Housing Coalition commissioned with Elliott Pollack and Company found that Arizona’s LIHTC-funded projects generated $745.9 million in economic activity, created 4,558 jobs and will yield $5.8 million annually in tax revenues. For every $1 Arizona invests, it leverages $4 in federal funds. Yet state LIHTC funding has stagnated at $8 million since 2015 and is oversubscribed year after year, belying the enormity of the need. Increasing the investment to $15 million would reenergize stalled projects, build thousands of units, and replicate successes like Centerline on Glendale, the very first state LIHTC project that created 368 affordable units.

Yes in God’s Backyard: Unlocking Land, Building Community
Another proposed bill, HB2191 — ‘Yes In God’s Backyard’ — allows faith communities to repurpose underused land into much-needed mixed-income housing without rezoning hassles. In Phoenix alone, over 500 religious sites exist and remain largely untapped, meaning if just 10% were developed at five units per site, we could gain 2,500 affordable homes without taxpayer dollars. Projects like Phoenix’s Acacia Heights — which took 12 years to complete — show why cutting red tape matters. Critics fear density, but YIGBY ensures modest, mission-driven developments that respect neighborhoods.

The Road Ahead: Beyond Building
Even with these tools, Arizona’s crisis runs deeper. Wages lag far behind housing costs — rents jumped 35% since 2018, while incomes rose just 18%. Single-family zoning dominates 80% of Phoenix, blocking duplexes and apartments. Until we embrace denser, diverse housing — granny flats, townhomes, mid-rises — supply will lag.

Affordable housing isn’t a handout — it’s economic infrastructure. When nurses and grocery clerks can live where they work, traffic eases, local businesses thrive and communities stay intact.

Lawmakers must:

• Renew ADOH to preserve Arizona’s housing advocate.
• Expand LIHTC to leverage federal dollars and rebuild our affordable pipeline.
• Pass YIGBY to empower communities to be part of the solution.

But Arizonans must also shift our mindset. The desert’s beauty lies in its resilience — and so does ours. Let’s replace “not in my backyard” with “yes, in our community.” The crisis isn’t coming –  it’s here. The time to act is now.

Nicole Newhouse executive director of the Arizona Housing Coalition.