Housing, Regional analysis

Data on housing stock can be used to evaluate several factors including the relative affluence of a community as reflected by the median value of a home; housing affordability; the availability of housing available for a professional workforce; and the extent to which residents are willing and able to own homes rather than rent. Data in this section are from the American Community Survey (2007-2009 for all counties but Graham, and 2005-2009 for Graham County).

The median value of homes in the SEAGO region varies widely from county to county. Cochise County has the highest median value at $163,300, which was 26.1 percent below the statewide median of $221,000. This was followed by $159,500 in Santa Cruz County (27.8 percent below the state median), $125,000 in Graham County (43.4 percent below the state median), and $64,800 in Greenlee County (70.7 percent below the state median).

Monthly owner costs reflect the ability of current homeowners to afford mortgage and related costs, including property taxes, insurance, and utilities. In the SEAGO region, monthly homeowner costs are considerably lower than statewide, and homeowners generally pay a smaller portion of their income for housing (with the exception of Santa Cruz County).

Monthly owner costs for housing are $1,510 statewide, $1,160 in Santa Cruz County, $1,137 in Cochise County, $966 in Graham County, and $783 in Greenlee County. In relation to monthly income, statewide 40.9 percent of homeowners pay 30 percent or more of their monthly income toward housing costs (30 percent of income is a common threshold above which housing is considered to be unaffordable).

Within the SEAGO region, only Santa Cruz County has a larger proportion of homeowners paying more than 30 percent of their income for housing at 42.9 percent. This figure is 34.2 percent for Graham County, 32 percent for Greenlee County, and 29.7 percent for Cochise County.

Homeownership rate higher than statewide

The homeownership rate in the SEAGO region is higher than statewide: 69.1 versus 67.6 percent. All counties in the SEAGO region have a higher ownership rate than statewide, with the exception of Greenlee County. Homeownership rates in the SEAGO region are: Santa Cruz County: 74.1 percent; Cochise County: 69.3 percent; Graham County: 68.1 percent; and Greenlee County: 50.2 percent.

Greenlee County‘s lower homeownership rate may reflect housing provided by Freeport McMoRan Copper & Gold (formerly Phelps Dodge Company) for its employees.

The total number of housing units increased by approximately 15.6 percent in the SEAGO region from 2000-2009, roughly in line with estimates of population growth. The largest increase was in Santa Cruz County, where housing stock increased by 32.7 percent, followed by Cochise County (13.1 percent), Graham County (11.9 percent), and Greenlee County (1.8 percent). Statewide, the housing stock increased by 24.2 percent, considerably faster than the rate of growth in the SEAGO region and in all SEAGO counties except Santa Cruz.

Homeowner vacancy rates are an indicator of the supply and demand for housing. High vacancy rates can discourage new construction and place downward pressure on home values and prices if the vacant units are for sale.

The homeowner vacancy rates in the SEAGO region are lower than that of the state overall in all counties except Santa Cruz. Statewide, the homeowner vacancy rate is 3.9 percent, compared to 1.2 percent in Graham County, 2.7 percent in Cochise County, 2.8 percent in Greenlee County, and 8.1 percent in Santa Cruz County.

The region‘s seasonal employment patterns impact vacancy rates. Census vacancy rates for communities in which mining and agriculture, and their related industries, provide a majority of employment measure at a single point in time and thus may not accurately reflect the extent to which housing is chronically unavailable. This situation may be exacerbated by the influx of seasonal visitors or “snowbirds” and is the case in many SEAGO communities.

The housing stock also includes rental units. A high rental vacancy rate puts downward pressure on rental rates and discourages construction of new, multifamily housing. As with homeowner vacancy rates, the rental vacancy rates in the SEAGO region are lower than that of the state overall in all counties except Santa Cruz.

Statewide, the rental vacancy rate is 11.1 percent, compared to 5.8 percent in Graham County, 8.1 percent in Greenlee County, 10.3 percent in Cochise County, and 26.7 percent in Santa Cruz County.

Median gross rent (rent plus utilities) in the SEAGO region is lower than statewide. Gross monthly rate statewide is $858, compared to $720 in Cochise County, $644 in Santa Cruz County, $594 in Graham County, and $379 in Greenlee County.

Affordability of rental units (rent in relation to income) is greater than statewide in all SEAGO counties except Santa Cruz. Statewide, 50.6 percent of renters pay 30 percent or more of their income for rent and utilities, compared to 9.2 percent in Greenlee County, 36.1 percent in Graham County, 43.9 percent in Cochise County, and 53 percent in Santa Cruz County.