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Consultants: Prescott facing shrinking workforce, rising prices; 3,200 units projected by 2040
Summary
A housing needs assessment presented to the Prescott City Council identified an aging population, rising home prices and rents, and a projected demand for roughly 3,200 housing units by 2040; consultants and council members discussed “missing middle” housing and next steps for a gap analysis.
A housing needs assessment presented to the Prescott City Council on March 25 found that the city’s median household age and rising housing costs are constraining the local workforce and creating long-term demand for new units.
Rick Merritt, retained by the city and Prescott Valley, told the council the average household age in Prescott is about 60, and said that creates a low labor participation rate that forces employers to recruit workers from outside the community. “The primary thing is you don't want to see people spend more than 30% of their income on housing,” Merritt said.
Merritt said single-family home prices rose roughly 37% since 2020 and condominiums about 54%, and rents have increased about 18%—equating to roughly $1,500 in higher average monthly rent in Prescott. He said 600 multifamily units are currently under permit or construction and another 1,300 are in planning, but noted some projects may stall because of construction and financing costs.
The study estimated population growth through 2040 would create demand for about 3,200 housing units based on current household sizes. Merritt and staff highlighted “missing middle” housing — fourplexes, duplexes, cottage courts and townhomes — as options that can produce more affordable ownership opportunities than high-rise apartments.
Mayor Pro Tem and several council members noted down-payment barriers for first-time buyers and emphasized that solutions could include smaller single-family homes, townhomes, duplexes and accessory dwelling units. The consultant said the next steps are to finalize a gap analysis, produce community-facing education materials and develop strategies with neighboring jurisdictions in the Tri-City area.
Councilmembers and staff encouraged broader public participation in the city’s housing survey to increase responses and inform the final recommendations.
Ending: The consultant said a full recommendations report with strategies and educational materials will follow; no formal council action was taken at the presentation.
