Teacher’s Housing Shortage Problem Solved By Tiny Homes
Teachers in Arizona are facing a housing shortage. See what they are doing to help solve this problem.
Not just in Arizona. Teachers and other skilled people are suffering from the housing shortage in North America and most of the world. A shortage aggravated by house prices rising faster than incomes. It affects both buyers and renters. Historically, teachers and others starting their first jobs rent accommodation for a few years before buying.
Younger teachers often transfer to better posts every few years. They depend on rented houses or apartments during the early parts of their careers until they settle in more permanent positions.
Housing shortage in Arizona
This article in Fox News deals with the acute housing shortage for teachers in Arizona.
The problem is really serious in Arizona because it has the unfortunate record of having the lowest primary school teacher salaries in the USA. High school teachers salaries don’t rank much better.
It’s hard to enjoy Arizona’s warm climate and amazing desert scenery when you can’t afford to buy or rent a home near your place of work.
The town of Vail has taken a bold decision to provide tiny houses for its teachers.
A block of five acres of land has been set aside to build up to 24 tiny homes between 300 and 500 sq.ft.
Teachers can buy these little houses with a monthly mortgage repayment of $700 a month. A much better option than the $850 the first buyer was paying to rent an apartment 30 minutes away.
Housing shortage nightmare will get worse
In the first quarter of 2018, the RBC Housing affordability survey found that the average Canadian spent 48.4% of his or her income on rent. In Toronto that was 74.2% and in Vancouver, 87.8%.
What is a nightmare for many renters is that the same survey found 20% of all households living in rental accommodation spent more than 50% of household income on rent.
This trend is expected to continue.
Consensus Economics predict that wage costs in the USA will increase by 1.7% up to 2024 and by 1.8% from 2025 to 2029. That would suggest that average salaries and wages will not keep pace with estimated house price increases of 3% per year for both the USA and the UK.
The difference in rates of increase for wages and house prices means that more people will find conventional housing increasingly unaffordable in the next five years.
Bill Connerly, writing in Forbes magazine estimates that demand for new houses in the USA will drop over the next three years due to lower population growth and other factors. He also notes the increase in single households which adds to the demand for additional housing units.
Single households generall have lower incomes than those with two or more wage earners.
This will drive up demand for tiny houses to reduce the housing shortage.
One of the biggest hurdles for tiny home buyers and builders is finding places to build or place them.
Economic and demographic factors will continue to make tiny homes an attractive and affordable choice for a growing number of home buyers and renters.
Local, state or provincial and national governments need to change legislation to make it easier to build and occupy tiny homes.
Check out our tiny house plans here.
What is your emergency housing plan should your income take a big drop? Have you considered the option of a tiny home?