Inside Tempe's Efforts to Fix the Housing Crisis

The city of Tempe is actively working on ways to address the housing crisis and make off-campus housing more affordable for students. According to Maegan Pardue, the driving initiative is Hometown for All, a city program created to expand affordable and workforce housing construction. In addition, voters approved a $32 million affordable housing bond in Nov. 2024, providing funding to accelerate new affordable housing projects. Most recently, in Nov. 2025, the Tempe City Council passed the Middle Housing Overlay Ordinance unanimously, allowing the development of duplexes, triplexes, fourplexes, and townhomes on lots originally zoned for single-family housing within one mile of the Central Business District. These efforts aim to expand housing supply and create more affordable options for both renters and owners.

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Joanna Lucio, an associate professor in ASU’s School of Public Affairs and the associate dean of academic affairs, has spent her career studying how urban policy affects diverse communities. Lucio, who joined ASU in 2006, focuses her research on housing, neighborhood policy and the rights of low-income and disenfranchised residents. Her work has influenced local governments, including recent program changes made by the city of Phoenix based on findings from one of her doctoral research projects.

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Lucio said Tempe’s housing challenges are especially difficult because the city is landlocked and demand from students continues to rise. Without policy changes, she said, affordability will continue to decline. “Without intervention, I do not believe the housing market will be sustainable,” Lucio said. “Students are struggling to find affordable housing near campus, which can push them out of school before they graduate.”

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She said Arizona’s ban on inclusionary zoning limits the tools cities can use to encourage affordable development. Lucio said Tempe’s Community Development Corporation offers some opportunities for local solutions, but broader change is needed. “We need to overcome opposition to affordable housing and help residents understand the benefits it brings to their communities,” she said. 

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These pressures directly feed into the region’s high eviction rates and growing homelessness. Lucio explained that the strain of overcrowded or unstable housing can have serious consequences: “Some families are living in overcrowded conditions, which can take a toll on mental health, and school and work performance.”

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For students, the effects can be even more severe. Lucio warned that unstable living arrangements, whether couch surfing or squeezing too many people into a small space, can throw off academic success. “Insecure living situations can lead to extreme mental health issues,” she said. When students are unable to focus on school or are forced to drop out, the long-term impact can be devastating. “Students who do not persist may have significant debt, which can further exacerbate their financial outcomes and job prospects.”

Lucio said that unless affordability improves, both students and the broader Tempe community will continue to face mounting challenges.