U.S. Sen. Mark Kelly (D-Arizona) is calling attention to the issue of housing affordability in a letter sent to President Donald Trump and Housing and Urban Development Secretary Scott Turner this week.
Kelly’s letter discussed how rising rents, home prices, insurance costs, utilities, and construction expenses are putting growing financial pressure on Arizona families, and accuses Trump’s policies for further destabilizing the housing market.
“Housing costs have reached a breaking point for too many families in Arizona and across the country. You promised to lower costs ‘on day one,’ but instead of easing the financial burden Americans are facing, your Administration has made the situation worse,” Kelly wrote. “Housing, insurance, utilities, and construction costs are rising. A year into your second term, your Administration’s policies have increased the price of building materials, destabilized affordable housing programs, and cut funding to help the homeless, while doing nothing to bring down rents and mortgages. In a fast-growing state like Arizona, where population growth and limited supply already make housing expensive and hard to find, your Administration is placing even more pressure on families who are trying to afford a safe place to call home.”
A Widening Gap
Kelly pointed to the widening gap between incomes and housing costs, warning that many Arizona families are spending an unsustainable share of their income just to keep a roof over their heads: “Arizonans continue to struggle with a long-term trend of higher home prices and rents rising much faster than incomes. Renters in the Phoenix metropolitan area pay about $1,849 per month in rent, while a Phoenix resident earns only $67,500 per year on average. This means many families spend over 30 percent of their income on housing and have trouble making ends meet each month.
He added that nationwide incomes have grown much more slowly than home prices. Since 1985, median household income has increased 255 percent, while median home prices surged by more than 415 percent, making it harder for many Americans to afford a home.”
Kelly further warned that homeowners are facing rising insurance and utility costs, particularly in areas vulnerable to wildfire, drought, and extreme heat: “The cost of maintaining a home has also increased. Homeowners insurance premiums are skyrocketing, particularly in regions facing heightened wildfire, drought, or extreme heat risk. Homeowners in high-risk areas now pay significantly more for insurance, and many are struggling to find affordable coverage at all. In Arizona, premiums have increased at some of the fastest rates in the country, creating new barriers for first-time buyers and adding strain for existing homeowners. And utility costs are still high. Electricity rates in Arizona have gone up in recent years, and despite your repeated claims that energy prices are falling, families have not seen relief in their monthly bills.”
Kelly closed by urging the Administration to work with Congress to deliver real relief for families struggling with housing costs: “I urge you to start by ending these tariffs that are jacking up the cost of building new homes. I’m ready to work with you and anyone in your administration or in Congress to lower the cost of housing so that hardworking Americans can put a roof over their head.”
Kelly’s concerns notwithstanding, Trump said in a Cabinet meeting that he wants to see home prices go up, not down.
The post Sen. Kelly Calls on Administration to Address Housing Affordability first appeared on The MortgagePoint.
