There’s a housing affordability crisis, not only in Payson but throughout the US.
One of the reasons — increased labor and material costs.
The cost increase has developed over time. According to research, by 2020 the per square foot cost to build multifamily homes rose 25% since 2010.
“The cost of wood, plastics, and composites rose by 110% after inflation, with finishes (paint, etc.) rising over 65%,” reported the U.C. Berkeley Terner Center for Housing Innovation. “Since the report’s publication in 2020, these costs have only increased.”
The most recent numbers in Arizona indicate the per square foot building cost ranges between $300 and $500 per square foot. A number confirmed by local realtor and former Payson Mayor Cliff Potts.
“Local contractors tell me it’s about $400 per square foot now,” he said.
A group of residents have decided to explore possible solutions, including reducing the cost to build a home, because “I don’t believe there is one answer to the workforce housing problem,” said Steve Oberholtzer of the Affordable Workforce Housing Initiative.
His group invited Kenny Evens, MHA Foundation President and former Payson mayor to discuss alternative building materials to reduce the price of a home, as already the MHA Foundation has built homes out of shipping containers.
“One of the struggles we talked about as an organization, we are desperately in need of housing for the university students we have,” he said.
The MHA Foundation, in partnership with the University of Arizona has created the Longitudinal Integrated Curriculum program at the University of Arizona’s College of Medicine-Phoenix Rural Training Program. Student in their third year of medical school come to live in Payson and go to school while mentoring side-by-side with local doctors. These students need temporary long-term housing while in the program for a few months.
“We embarked on a journey and used a little parcel to build a container home,” said Evans.
In August of 2021, the MHA Foundation unveiled their 960 square foot, three-bedroom, two bath home on its property near the hospital. The kitchen has quartz countertops, and the master bath has a walk-in shower. It cost around $105,000 to build. Added bonus – the materials are wildfire proof.
Back then, the square foot cost to build the container home came to about $100, said Evans. That included finish work — floors, doors, painting, etc.
But building from container homes hasn’t appealed to local contractors. Most new homes still use the traditional “stick and mortar” method. For developers, building a single million-dollar home provides more profit with less effort than building 100 homes that cost $100,000 each.
A recent story in USA Today listed 22 alternative less expensive materials to use to save on the cost of building a home: an earth shelter, reclaimed wood, reclaimed metal, precast concrete, bamboo, cork, mycelium (mushrooms), shipping containers, cob, adobe, rammed earth tires, earthbags, recycled steel, ferrock, timbercrete, grasscrete, papercrete, hempcrete, sheep’s wool, plant-based polyurethane rigid foam, straw bales, and recycled plastic.
It’s unclear if local building codes in Gila County or the Town of Payson will allow for all these different materials. Yet another challenge to reducing home prices – changing the codes to allow for other building materials.
“We need to put our thinking camps on and think of new and different ways to reduce the price of houses, we can’t keep doing what we have been doing and expect a different result,” said Evans.
