Tempe's Housing History
Tempe’s current housing shortage didn’t appear overnight. The Phoenix metropolitan area has been one of the fastest-growing in the nation for decades. Between 2000 and 2009, the population of the Phoenix, Glendale and Mesa region increased by 33.11%, according to an analysis from Humboldt University of Berlin’s Department of Geography. High demand, limited supply and sustained in-migration pushed the region into a long-term affordability crunch that never fully corrected.
Understanding the Housing Affordability Crisis
Housing affordability refers to how well a household’s income can cover its housing expenses. The standard guideline is that housing costs should not exceed 30% of a household’s gross income. When spending surpasses this threshold, households are more likely to experience financial stress, reducing their ability to pay for other essential needs such as food, healthcare, and transportation.Tempe, the heart of ASU, absorbed a huge share of this growth. The university’s enrollment expanded year after year, and the city became increasingly dependent on student renters. Today, about 70% of ASU students live in Tempe, making up 21% of the city’s total population, according to Tempe Public Information Officer Maegan Pardue.
Infographic illustrating the development of Phoenix and Tempe over time
That concentration of students and their need for housing near campus puts enormous pressure on the local rental market. Maegan Pardue, a public information officer for the City of Tempe, said that both on-campus and off-campus housing are now priced at or above what’s considered affordable for the average student, with very little difference between them. In other words, whether a student chooses a dorm or an apartment, the gap between typical student incomes and market rents remains wide.
Google Map highlighting popular college apartment complexes with photos and key details