Phoenix Is One Of The Most Debt-Burdened Cities, According To New Study

Phoenix Is One Of The Most Debt-Burdened Cities, According To New Study

By Staff Reporter |

The city of Phoenix is one of the cities with the most debt in the country, according to a new study.

Per a study from LendingTree, Phoenix ranks 18th among the 50 largest metropolitan cities for debts held. The average Phoenix resident has a debt surpassing $39,000. That’s higher than the average nonmortgage debt across all 50 of the country’s largest metropolitan cities (about $37,800). 

The average Phoenix resident’s income amounts to $79,600 according to Census Bureau data, above the median household income for the rest of the country (over $75,100). The average Phoenix resident debt amount is nearly half of the city’s median income.

LendingTree retrieved its data using anonymized credit reports from around 210,000 users on their platform from April through June of this year across the 50 largest cities. Nonmortgage debt includes auto loans, student loans, credit cards, personal loans, and all other types of debt excluding mortgages. 

Nearly 97 percent of consumers in Phoenix have nonmortage loan debts, per the study. That tracks with the debt averages for rest of the 50 most populated metros: on average, 97 percent of residents across all those cities have nonmortage debt.

45 percent of Phoenix residents also have auto loan debt, 85 percent have credit card debt, 24 percent have personal loan debt, and 24 percent have student loan debt. 

Phoenix ranked even higher with its average auto loan debt, placing eleventh with the average auto loan debt sitting at nearly $14,000. That’s higher than the average auto loan debt for the state, which amounts to around $6,000. Auto loan debts accounted for the greatest portion of average debts held by Phoenix residents, which is also the case for 26 of the other 50 major metros included in the study.

Average credit card debt in Phoenix amounted to just over $8,200, average personal loan debt amounted to about $4,200, and average student loan debt amounted to over $10,300. 

The average Phoenix resident’s credit card debt came out higher than the state’s: the average for all of Arizona amounts to over $6,300. 

At the end of last year, Arizona ranked among the top ten states for the highest average unsecured personal loan debts: around $12,300. Arizona also ranked among the top 20 for highest average household debt increases from last year to this year: an increase of over $700, making total household debt in the state amount to over $429.6 billion. 

The city’s student loan debt is lower than that of the state. As a whole, the state has an average student loan debt of nearly $35,700, with about 902,600 borrowers living in the state. 

Phoenix was the only metro city from Arizona listed on the top-50 ranking by LendingTree. 

The top three cities for debts held were all in Texas: Austin, San Antonio, and Houston, in order of highest to lowest.

The three cities with the lowest amounts of debt, in order from least to greatest, were: San Jose, California; Louisville, Kentucky; and Milwaukee, Wisconsin.

AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.

Maricopa County Industrial Development Authority Directs Bond Funds Toward New Home Lending Option

Maricopa County Industrial Development Authority Directs Bond Funds Toward New Home Lending Option

By Matthew Holloway |

A major infusion of public bond-funded dollars into Arizona’s first “nonprofit Green Bank,” the Sustainable Home Improvement Loans of Arizona (SHILA), was announced last week by the Maricopa County Industrial Development Authority (MCIDA). The MCIDA was appointed by and answerable to the Maricopa County Board of Supervisors. The $500,000 investment will reportedly be “focused on providing affordable financing solutions for low- and moderate-income homeowners.”

In a press release, Maricopa County Supervisor Clint Hickman said of the decision, “Maricopa County is committed to fostering economic growth and supporting sustainable communities for all residents. By investing in SHILA, we are helping low- and moderate-income homeowners access affordable financing options for energy-efficient improvements that will lower their utility bills, renovate their homes, and improve their overall quality of life.

This partnership not only strengthens our local economy but also contributes to a more resilient and sustainable future for Maricopa County. We are excited to support SHILA’s work and the positive impact it will have in our community.”

SHILA, equipped with the infusion of funds from the MCIDA, will reportedly assist 425 Maricopa County residents with $5 million worth of energy efficiency projects within the next three years. These projects include homeowners upgrading their insulation, roofing, door, window, electrical, and HVAC upgrades to increase energy efficiency with the average project costing $12,000.

Ty Lorts, CEO of SHILA explained, “We are honored to receive this foundational investment from the Maricopa County Industrial Development Authority. With their support, we can start making home improvement financing accessible for families who need it most. This funding will allow SHILA to begin transforming homes across Maricopa County, helping residents access a healthier living environment, lower utility bills, and have a greater quality of life.”

The MCIDA, founded in 1973 was created with the mandate to help “create and maintain jobs within Maricopa County and assists residents of the County to achieve a better standard of living and way of life.” But with a catch: it is to accomplish this with no government money involved. To that end, the Maricopa County Board of Supervisors’ appointed Board of Directors issues revenue bonds which are exempted from Arizona State taxes and, if compliant with IRS code, can also be exempt from federal taxes. Through these bonds, the MCIDA’s projects are funded.

Since its founding, the MCIDA has issued over $12 billion in bonds and invested millions into expanding access to affordable housing.

Speaking with KJZZ, Lorts explained that the nonprofit licensed just six weeks ago is working to help support affordable housing with a different strategy as opposed to predatory lenders or banks with high HELOC and credit card interest rates. “As money gets paid back in, we’re able to grow the business to a point where we don’t need any more outside money; where we are serving the outside community not just over the next five years but over the next five generations,” Lorts said.

“We’re trying to keep people in their homes, so they don’t have to seek alternative housing; so they don’t lose the house they’ve been in for the last 30, 40 years,” he added.

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.

Rental Tax Relief Law Set To Take Effect On January 1

Rental Tax Relief Law Set To Take Effect On January 1

By Daniel Stefanski |

Arizona Republican efforts to lower monthly bills for renters around the state have come to fruition.

Late last month, Arizona Senate President Warren Petersen shared a screenshot from an apartment property manager, alerting residents that rental taxes would no longer be on their bills. The manager wrote, “For years, Arizona has been one of the few states to allow cities and government entities to charge tax on rent. In 2023, a law was passed banning such transaction privilege tax. While the law was passed in 2023, it was not set to go into effect until January 1, 2025. Therefore, starting in January, rental tax will no longer be charged, and you will see a decrease in your monthly charges.”

Petersen responded to the news, saying, “It’s happening. Renters are about to get relief from the rental tax repeal passed by the Republican led legislature. The rental tax repeal was an important part of our majority plan to deliver inflation relief. To get the governors signature we had to delay the effective date to Jan 1 2025. Many people said the Dems would take the majority and put the tax back in place. Fortunately for renters we held the Senate and the House.”

Senator Shawnna Bolick also weighed in on the announcement from her chamber’s leader, indicating that additional plans to lower costs for Arizonans might be forthcoming from Republicans in the state legislature. She said, “In 2022, when I first sponsored that bill I met a guy from southern Arizona who asked me to do something about the residential rental tax. I spoke with this same gentleman this past week once again and he asked me to look at another tax issue since it is now going away. Stay tuned.”

Representative Travis Grantham echoed Petersen’s comments, writing, “So happy we made this happen. Wouldn’t have happened without you endlessly pushing for it!”

In August 2023, Governor Katie Hobbs signed SB 1131, the rental tax elimination bill for Arizona tenants, into law.

According to Arizona Senate Republicans at the time of the signing, “There are approximately 70 municipalities within our state charging this tax, while cities and towns continue to collect record revenues. From fiscal years 2019 to 2023, state-shared revenues from both sales and income taxes combined grew $733 million, or 59%. This increase is on top of any sales taxes or property taxes individually levied by each city. Between FY 2024 and FY 2025, those shared revenues are expected to grow by an additional $389 million.”

Hobbs had vetoed an earlier version of the rental tax prohibition. She gave two reasons for her action, stating, “First this bill lacks any enforceable mechanism to ensure relief will be provided to renters. As noted by the legislature’s own attorney, provisions in the bill that purport to require that tax savings be passed on to renters face challenges under both the state and federal constitutions. If we are going to promise relief to renters, it’s important that we are able to ensure they actually receive it.”

The League of Arizona Cities & Towns – as well as several cities and towns across the state – opposed the updated bill as it progressed through the state legislature and through the Governor’s Office in 2023. The Senate passed the bill on March 2, then the House on May 15. The Senate then concurred with the amended proposal on June 13. SB 1131 was not transmitted to Governor Hobbs until July 31 – the same day that the Legislature approved the negotiated Prop 400 plan.

Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.

Mesa City Council Approves Across-The-Board Utility Rate Hikes

Mesa City Council Approves Across-The-Board Utility Rate Hikes

By Matthew Holloway |

During a city council meeting this week, Mayor John Giles and the Mesa City Council voted to approve across-the-board increases in the city’s utility rates and fees covering solid waste removal, electricity, gas, water, and wastewater. Over two-dozen Mesa citizens spoke during the meeting, which stretched over two-hours. Mesa, lacking a primary property tax, derives much of its funding from utility rates and fees.

The city is facing increases in electric rates of up to 39% for Winter Tier 2 usage charges for residents and a $2.75 per month service charge increase according to the council report. Non-residential users will face increases from 2-6 percent. Solid waste residential barrel rates will increase 5.5%, with commercial roll-off rates jumping 6.5%. Gas rates are increasing 6-15% for residences and from 9-25% for non-residential users. Water rates are increasing 4-9% for residents, 5.5% for non-residential, 8.5% for commercial users, and 19.5% for large commercial or industrial users. Finally wastewater service and usage components charges will increase by 7.5% for residents and 8.5% for non-residential.

City staffers told The Mesa Tribune that the typical residential bill for water, wastewater, and solid waste will see an increase of about $5.60, from the current average of $100.21 to $105.81

As reported by the Tribune, Giles answered criticism at a meeting in late November telling the frustrated residents, “This proposed water-rate increase of less than 5% in Mesa is dramatically less than you see in every other community,” said Giles, zeroing in on the water utility increase.

“Cities around the Valley are increasing water 25%, talking about increasing wastewater charges 95%. We’re not doing anything remotely like that in the City of Mesa.“

“So if you’re upset about the increasing price of water, I’m with you. But if you want to vent those feelings, probably every other city council in the state would be a more appropriate place to do that because the increases are less than what you’re seeing in other cities.”

Kevin Medema, a Mesa resident who led the organization of a petition opposing the utility increases reportedly signed by 2,000 people, stressed, “We have citizens that are hurting financially. The city shoots for that 20% reserve (in the utility accounts). Well, you know a lot of residents won’t have that in themselves. So, please consider voting ‘no.’’’

Medema suggested that residents have offered to help the city find ways to reduce spending.

During the November 18th meeting, one Mesa resident, Lynda Patrick-Hayes poignantly called upon the council to “entertain the idea of cutting the utility rates and encourage the city manager to eliminate government waste. The City of Mesa has no revenue problems. It has a spending problem.”

Citing the city’s reliance on utility charges and sales tax due to lacking a property tax, Giles told the citizens, “There’s not an apples-to-apples comparison because the City of Mesa has a different model. We’re going to use utilities to help subsidize city services.”

Multiple attempts to reinstate a primary property tax, eliminated in 1945, have failed over the years.

“Now if you don’t like that model…the answer is not to come to the City of Mesa and say, ‘We don’t want you to raise utilities because that’s denying the reality of math.’”

Responding to calls to reduce city spending, Giles told the gathered objectors, “What your proposal is, you’re saying, ‘I want to dramatically cut spending on public safety in the City of Mesa.’ That’s what you’re asking us to do.” 

Republican State Representative Barbara Parker spoke on behalf of her constituents in the area and told the council, “They call me when they lose their homes. They call the state when they can’t afford their insurance. And on behalf of them, I am telling you they are hurting and even one dollar makes a huge difference.”

Parker castigated the mayor and council for suggesting the city cut public safety spending, “The fact that we use the threat of fear and emotion that we are going to cut police and fire is so disingenuous and inappropriate. And to all the gentlemen and women in uniform tonight: I am one of you and I have trained many of the firefighters, and I want you to know we have your backs. And we need to elect people who will fund you first and then find funding for everything else. We are never going to cut funding to police and fire. That is always a tactic. It’s disingenuous, it is inappropriate, it lacks accountability, it is intellectually dishonest, and they are not pawns and you deserve better. Don’t let them use you as a pawn police and fire. It’s inappropriate to have a bond and then immediately after that election to suddenly have a tax increase or a rate payers increase.”

She concluded, “One of the things I was able to communicate to the legislature as a member of the Appropriations Committee is that: EVERY. SINGLE. DOLLAR. IS. SACRED. Every single penny is sacred. And when I’ve asked the citizens would they rather have one more penny in their pocket than have it go to waste or redundancies or excesses. Absolutely they say yes. I hope you’ll have the courage to do the right thing tonight. I can tell you on behalf of the state: we were able to cut budget, balance our budget, give money back to the taxpayers and fund every single program. And if the state of Arizona can do it, Mesa can do it better.”

The rate increases were passed by the city council unanimously with Giles stating, “I know all of that is not appreciated by this crowd to the extent that we’d like it to be, but it’s the facts. For those reasons I am compelled by math and the reality of the situation to support this increase.”

Watch the Dec. 2 City Council Meeting Below:

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.

Arizona Utilities To Join Emerging Market In Hope Of Reducing Energy Costs

Arizona Utilities To Join Emerging Market In Hope Of Reducing Energy Costs

By Daniel Stefanski |

Arizona utilities providers recently revealed plans to partner with an emerging energy market.

Earlier this week, representatives from Arizona Public Service (APS), Salt River Project (SRP), Tucson Electric Power (TEP), and UniSource Energy Services made news by announcing that their utility companies would be joining Southwest Power Pool’s (SPP) Markets+. The partnership would take place starting in 2027 if the fledgling market receives the final green light from the Federal Energy Regulatory Commission (FERC).

According to the release issued by the state energy providers, an energy market “is an interconnected network of electricity providers that help meet the supply and demand of power across a specific geography and include transmission pathways for electricity to travel from one location to another.” For example, “When demand is lower, the Arizona utilities can sell energy, like excess solar power during the winter season, to maintain a balanced electric system, while also taking advantage of cost-savings opportunities.”

The Arizona utilities promise “increased reliability, greater cost savings, [and] more clean energy” for state customers after the partnership would take effect. It is projected that this market would save approximately $100 million from the status quo, which would be, in part, realized by the energy customers of the participating companies.

“Arizona is one of the fastest growing states in the country and we are thoughtfully planning for the future and evolving our operations to continue to provide top-tier service and reliability to our customers at an affordable cost,” said Brian Cole, APS Vice President of Resource Management. “Together with our neighboring utilities, APS plans to join Markets+ to efficiently deliver energy and bolster the resilience of our shared energy grid in Arizona and across the region.”

“SRP’s participation in SPP Markets+ is a key component of our plan to meet the growing energy needs of our customers reliably and affordably and will help us achieve our 2035 Sustainability Goals,” said Josh Robertson, SRP Director of Energy Market Strategy. “We look forward to working with utilities in the region to bring the cost and resilience benefits to our respective customers.”

“Tucson Electric Power and UniSource Energy Services are excited about the value that Markets+ can provide to our customers, including cost savings and greater access to clean energy and other resources that support affordable, reliable service,” said Erik Bakken, TEP Senior Vice President. “We look forward to strengthening an already collaborative, productive relationship with Southwest Power Pool, our reliability coordinator, in its new role as market operator.”

Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.

Christmas And Hanukkah Shopping Expected To Reach Up To $989 Billion

Christmas And Hanukkah Shopping Expected To Reach Up To $989 Billion

By Matthew Holloway |

The National Retail Federation (NRF) and Prosper Insights & Analytics have released a new survey indicating the hottest selling toys and gifts for the holiday season.

In a press release, NRF Vice President of Industry and Consumer Insights Katherine Cullen introduced the survey saying, “The holiday season is in full swing and while many consumers have made progress on their shopping lists, most shoppers will make the majority of their purchases over the coming weeks. Whether shoppers are looking to spread out their purchases or seeking the best deals, retailers are ready to help consumers with all their shopping needs this holiday.”

According to the survey, the NRF forecasts that 2024 holiday spending will increase by approximately 2.5-3.5% and total between $979.5 billion and $989 billion.

In the category of toys, the survey found real-world toys like Legos, Hot Wheels, and other toy cars reigning supreme over video games and video game consoles for boys. For girls, it found Barbie and other dolls standing tall with Legos, followed by cosmetics and beauty products.

For adults, the survey found that the top five gift-giving categories will be clothing (54%), gift cards (44%), toys (36%), books, video games, movies, series and other media (31%), as well as food and candy (30%). 

For gift cards, the most popular are those for restaurants at 30%, department stores at 25%, bank-issued gift cards at 25%, and coffee shop gift cards at 22%.

Prosper Insights & Analytics Executive Vice President of Strategy Phil Rist explained that most shoppers will find their gift inspirations online. He said, “Younger shoppers continue to embrace social media for gift ideas, with those between the ages of 18-24 more likely to find inspiration through platforms such as TikTok (28%) and Instagram (27%). These shoppers are also more likely than any other age group to purchase jewelry, with 30% planning to gift these items.”

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.