Report: Tucson needs 13,000 low-income housing units as shortage persists

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New data from the City of Tucson’s annual housing report says the city needs well over 10,000 units of low-income housing to address a variety of challenges in the next decade.

According to an analysis from research firm EcoNorthwest contracted by the city in 2024, the city needs a total of 35,000 units to combat homelessness, population growth, and a nationwide underproduction of homes since the Great Recession.

38%, or about 13,000 units, need to be affordable to people making less than 30% of the average median income.

Progress in building affordable housing is low, even as demand remains high.

The city’s Department of Housing and Community Development also reported 72% of people seeking homeless services in 2024 were not helped in the previous year.

“It does point to the need for more resources and more support,” HCD Director Ann Chanecka said.

The city currently has about 90 units of affordable housing currently under construction, between two projects; Amazon Flats on Miracle Mile, and Sugar Hill on Stone.

Milagro on Oracle, a 55+ low-income complex, opened in January with over two-third of its units already filled before the official leasing notice went out..

A development on South 10th Ave street is estimated to provide between 300 and 400 units, but according to the 2024 report, that project is still in the planning and design phase.

Chanecka said the city’s proposed Community Corridors Tool is hoping to soften zoning codes that make housing development more difficult, like density restrictions, parking requirements, and building height limits.

“We often hear the same things. One of them is making sure that there is enough vacant land or underutilized land that is zoned well,” Chanecka said.

According to the project’s website, the code update will focus on making development easier in Tucson’s unused space, with an emphasis on walkable areas, affordable housing, and public transit access.