By Staff Reporter |
Arizonans are among the top three in the country when it comes to spending the highest proportion of their income on housing and utilities.
Arizonans spend nearly 18 percent of their income on housing and utilities according to a new study. That makes Arizona rank second in the nation, after Florida and before Hawaii.
Although Arizona had lower per capita spending on housing, Arizonans were found to spend more when considering their lower average personal income (about $65,800).
The ranking came from a study conducted by What Are The Best, a product comparison platform. The study relied on per capita housing and utility expenditure data from the Bureau of Economic Analysis.
After Hawaii, the states with the highest percent of income spent on housing were, in order: South Carolina, Delaware, Maine, Colorado, Idaho, Nevada, and Vermont.
What Are The Best founder Albert Richer said in a press release that Arizona lacked the high incomes to offset the higher housing costs, unlike certain other states.
“For residents in states like Florida and Arizona, nearly a fifth of their income goes toward keeping a roof over their heads,” said Richer. “Some states with high housing costs, like Colorado, have high enough incomes to offset the impact, while other states with more modest housing costs still see residents struggling because of lower incomes.”
Arizona’s neighbors all rank far lower in terms of percent of income spent on housing. Colorado ranked 7th (16.3 percent), Nevada ranked 9th (15.7 percent) New Mexico ranked 12th (15.2 percent), California ranked 15th (14.8 percent of income), and Utah ranked 17th (14.7 percent).
Housing costs in Arizona hit record highs last year. An analysis by Redfin Real Estate of median sale prices earlier this year found that prices ranged from $218,500 for bottom tier, to $463,500 for mid-tier, and $2.5 million for luxury tier. These price ranges were higher than housing costs nationwide: $125,300 for bottom tier, $375,000 for mid-tier, and $1.3 million for luxury tier.
Redfin’s estimate of the median household income for home buyers in Arizona was $96,300 — higher than the median household income nationwide of around $88,000.
Data from real estate marketplace company Zillow, compiled by Stacker, found that homes in the many of the main cities concentrated in the Phoenix-Mesa-Chandler metro area often run higher than those medians provided by Redfin. This dataset covered 30 cities, towns, and communities across areas within or near Phoenix-Mesa-Chandler area, Flagstaff, Tucson, Prescott Valley and Prescott, Nogales, and Show Low.
The town of Paradise Valley, which sits in the Phoenix-Mesa-Chandler metro area, ranks as having the highest typical home value in the state: over $3.3 million. The lowest typical home value in the Phoenix-Mesa-Chandler metro area was Wickenburg, with a typical home value of $508,400.
The lowest-ranking town on that list overall was in the Flagstaff area, Happy Jack, which had a typical home value of over $493,000.
Lawmakers have proposed several approaches to mitigating housing availability and affordability.
A bill to cap corporate ownership of homes (HB 2325) in the state died on Monday after Republican leadership tabled it instead of giving it a committee hearing.
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