by Ethan Faverino | Jan 8, 2026 | Economy, News
By Ethan Faverino |
As Arizona lawmakers prepare to convene for the 2026 legislative session, a leading nonpartisan think tank is warning of a demanding agenda driven by fiscal discipline, persistent housing shortages, and critical water policy decisions.
Katie Ratlief, Executive Director of the Common Sense Institute (CSI), emphasized the need for urgent action from the Legislature and Governor Katie Hobbs to address these issues. In a recent report by The Center Square, Ratlief highlighted that the session will require decisive leadership to tackle spending trends, affordability barriers, and the state’s long-term water security.
Arizona’s budget has expanded significantly over the past decade, rising from approximately $10 billion to nearly $18 billion, with $6 billion of that increase occurring in just the last five years. Ratlief urged policymakers to rein in spending increases and reassess recent commitments to determine whether they remain necessary, warning against expenditures outpacing economic growth.
Housing affordability remains a top concern for CSI Arizona, with the latest quarterly report underscoring ongoing challenges despite some cooling in the market. The average home price stands at $426,164—$53,400 more expensive than pre-pandemic trends—leaving households facing high costs amid elevated mortgage rates.
According to CSI Senior Economist and Research Analyst Zachary Milne, Arizonans now need to work more than 64 hours per month, at the average wage, just to afford a typical home payment, significantly up from the historical average of 45 hours.
Real-time estimates show an instantaneous housing shortfall of 52,846 units in Q2 2025, a 6.9% improvement from the revised 56,812 units in 2024. Arizona faces a cumulative housing deficit of 121,334 units, as of 2024, reflecting years of inadequate construction relative to population growth.
Ratlief believes the housing shortfall is not the result of state policy but of holdups originating within cities, noting that local governments control permitting, building codes, and enforcement—factors that can significantly slow housing development.
CSI revealed that most Arizona counties—including Maricopa, with a projected deficit of 34,737 units—are falling behind demand. Even with recent improvements in permitting, Maricopa County is still building thousands of units short of what is needed annually.
Water policy will also dominate discussions this legislative session, as ongoing negotiations over the Colorado River allocations approach a pivotal February 14, 2026, deadline set by the U.S. Department of the Interior.
This is viewed as likely the final opportunity for the seven basin states to reach a consensus agreement on sharing the river’s water before current operating guidelines expire at the end of the year. With Arizona’s unique constitutional requirement, any agreement reached will require legislative approval, setting the stage for intense debate in the 2026 session. Ratlief indicated that if states finalize a deal, the Legislature will debate and vote on authorizing the Department of Water Resources to sign on, potentially shaping Arizona’s water future for decades.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Ethan Faverino | Jan 5, 2026 | Economy, News
By Ethan Faverino |
The Industrial Commission of Arizona announced the state’s minimum wage has increased to $15.15 per hour effective January 1, 2026, up from the current minimum wage of $14.70.
This $0.45 adjustment, mandated under A.R.S. § 23-363(B) and the Fair Wages and Healthy Families Act, reflects the rise in inflation from August 2024 to August 2025. The change highlights Arizona’s commitment to tying wage growth to economic realities, ensuring minimum-wage earners can better keep pace with living costs.
Certain exemptions apply under the Act, including employees of parents or siblings, casual babysitters in an employer’s home, workers for the State of Arizona or the U.S. government, and small businesses grossing less than $500,000 annually if exempt under federal law.
For tipped employees, employers may pay up to $3.00 below the minimum wage, provided they maintain records demonstrating that the employee’s combined wages and tips meet or exceed the minimum wage for all hours worked. This move aligns with a broader national trend where more than half of U.S. states now exceed the federal minimum wage of $7.25 per hour, unchanged since July 24, 2009—the longest period without an update since its inception in 1938.
Over the past decade, 30 states and Washington, D.C., have raised their minimum wages above the federal level. This momentum, driven by labor advocates and shifts in economic policy, recognizes that $7.25 is insufficient for a basic standard of living in most areas.
In 2026 alone, 23 jurisdictions—including 22 states and Washington, D.C.—have implemented or announced increases, reflecting a growing consensus on wage equity.
Arizona’s new rate of $15.15 positions it among 18 states where the minimum wage now tops $15 per hour. Washington, D.C., leads the nation with a minimum wage of $17.95 per hour, followed by Washington State ($17.13), New York ($17), Connecticut ($16.94), California ($16.90), Hawaii ($16), and Rhode Island ($16).
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | Dec 31, 2025 | Economy, News
By Matthew Holloway |
U.S. Rep. Andy Biggs (R-AZ-05) recently told Newsmax that Americans should begin feeling the economic impact of President Donald Trump’s signature tax and budget law within the next 90 days as key provisions are implemented.
Biggs made the remarks during an interview on Monday, December 22, referencing what supporters officially call the One Big Beautiful Bill Act (H.R.1), a broad tax and spending statute signed into law earlier this year.
Biggs said Americans will start seeing the tax changes “pretty quickly,” adding that the core provisions would “start spinning up in the next 90 days.”
He told the outlet that the rollout of the new tax policy would stimulate economic activity. “So you’re going to see some new things with regard to Social Security, overtime, tax on tips, and that’s going to actually cause some economic stimulus,” Biggs said.
The One Big Beautiful Bill Act was enacted on July 4, 2025, following passage in both the U.S. House and Senate. It includes a wide range of tax code changes, spending provisions, and policy adjustments central to the Trump administration’s domestic agenda.
The law permanently extends several individual and business income tax cuts originally enacted in the Tax Cuts and Jobs Act of 2017 and includes a number of deductions and tax incentives. It also makes significant changes to Medicaid eligibility requirements and the Supplemental Nutrition Assistance Program (SNAP), raises the debt ceiling, and allocates funding across defense, border enforcement, and other federal priorities.
Biggs was among Arizona’s congressional Republicans who supported the bill during its floor votes. All six Republican members of Arizona’s U.S. House delegation voted in favor of the legislation when it returned to the chamber for final approval in July.
The bill passed the House on a 218-214 vote after earlier Senate approval. It then went to President Trump, who signed it into law later the same day.
Biggs’s comments come as Republican lawmakers and supporters highlight the expected timelines for implementing tax cuts and credits included in the legislation. Trump allies have repeatedly emphasized that many provisions are designed to reduce tax burdens for individuals and businesses once they take effect in 2026.
The law’s changes to federal tax rates and deductions, including those affecting child tax credits and specific income brackets, could impact Arizona households in 2026 as those provisions begin phasing in. It also includes changes to federal funding streams that intersect with state budgets, such as SNAP and Medicaid, both of which have significant participation among Arizona residents.
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.
by Matthew Holloway | Dec 21, 2025 | Economy, News
By Matthew Holloway |
U.S. consumer price inflation slowed more than expected in November, with the latest official data showing a notable drop in the Consumer Price Index (CPI) and core inflation. This key measure strips out food and energy costs, according to an update released Thursday by the Joint Economic Committee (JEC).
The headline Consumer Price Index (CPI-U), a broad measure of prices consumers pay for everyday goods and services, rose only 2.7% from November 2024 to November 2025, below the roughly 3.0% economists had expected. This marks one of the lowest readings in 2025, signaling a potential easing of inflationary pressures.
Core CPI, a measure that excludes volatile food and energy prices, also fell to 2.63% year-over-year, its lowest reading since March 2021.
Between September and November, the headline CPI increased modestly by 0.20%, while core inflation edged up by 0.16% over the same period, indicating that prices rose only slightly in recent months, even after volatility is adjusted for.
The data showed a mixed picture for specific sectors:
- Food price inflation was 2.65% year-over-year, a decline of roughly 0.46 percentage points from September.
- Energy price inflation rose 4.24% year-over-year, up about 1.39 percentage points from September.
Regionally, the Northeast saw the highest inflation rate between September and November at 3.1%, while the West and Midwest tied at 3.0%. The South recorded the lowest inflation at 2.2%, down from 2.7% in the September report.
In addition to prices, the JEC noted improvements in real wages during the most recent two-month period. Inflation-adjusted earnings for private nonfarm workers showed that weekly earnings rose 0.66% and hourly earnings rose 0.35%, suggesting that wage growth modestly outpaced price gains through November.
In a post to X on Thursday, the White House highlighted the slowed inflation and the pace of wage increases, writing, “President Trump is turning the economy around—pulling it back from the brink & setting the stage for a HISTORIC BOOM.”
Economists have cautioned that some of the recent inflation slowdown reflected in official figures may be affected by data collection challenges earlier this year. Independent reporting highlights that federal data gathering was disrupted by a prolonged government shutdown, which prevented the Bureau of Labor Statistics from compiling October CPI data and may have altered how price changes were measured, according to Reuters.
Nonetheless, both headline and core measures show inflation moving closer to longer-term targets, a development policymakers and markets will be watching closely as the Federal Reserve, Congress, and Trump Administration consider their next steps in 2026.
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.
by Ethan Faverino | Dec 20, 2025 | Economy, News
By Ethan Faverino |
While homeownership rates have remained stubbornly flat or declined in many parts of the country, Arizona has beaten the trend with one of the strongest increases in the nation, according to a new decade-long study by the New Jersey Real Estate Network.
The analysis is based on U.S. Census Bureau data tracking changes in owner-occupied housing units across all 50 states between 2014 and 2024, providing a long-term view of homeownership trends beyond short-term market fluctuations.
Arizona posted a 7.79% increase in the percentage of owner-occupied homes over that period, landing the Grand Canyon State at No. 5 nationwide for homeownership growth—the only Southwestern state besides New Mexico and Nevada to crack the top five.
New Mexico ranks first among the states with the greatest growth in homeownership, posting an 11.42% increase. Nevada follows at 9.22%, with Virginia (7.99%), Maine (7.83%), and Arizona (7.79%) rounding out the top five.
The gains in Arizona and its fast-growing neighborhoods reflect a combination of strong population growth, job creation in tech and healthcare, and relatively affordable entry-level housing compared to coastal markets—even as prices have risen sharply in recent years.
At the opposite end of the spectrum, several states saw significant drops in the share of residents who own their homes.
The states recording the steepest drops in homeownership include South Carolina (−7.56%), North Carolina (−5.79%), Michigan (−5.01%), Oklahoma (−4.96%), and Alaska (−4.20%).
“While many states saw peak homeownership rates in 2020, followed by slight decreases in recent years, this could reflect various factors, including shifts in housing markets and affordability trends, as individuals continue to navigate evolving financial landscapes,” said the New Jersey Real Estate Network spokesman.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | Dec 20, 2025 | Economy, News
By Matthew Holloway |
A record number of consumers plan to shop on “Super Saturday” this year, according to the National Retail Federation (NRF) and Prosper Insights & Analytics, signaling continued strength in final-stretch holiday spending despite months of inflation pressures.
The NRF’s annual survey projects 158.9 million Americans will shop on December 20 — the last Saturday before Christmas and historically one of the busiest retail days of the year. The organization says the figure surpasses both last year’s estimate and the previous all-time high in 2022, according to a Wednesday press release.
“As the final Saturday before Dec. 25, Super Saturday is a significant shopping event for both consumers and retailers,” said Katherine Cullen, NRF’s vice president of industry and consumer insights.
“This year’s event falls only five days before the Christmas holiday, and consumers will shop across retailers and channels in search of the final gifts on their lists and other holiday items they need to complete a memorable holiday season,” she added.
The NRF survey, conducted December 1–10 among more than 8,300 adult consumers, found that:
- Roughly 45 percent expect to shop both in-store and online,
- 29 percent plan to shop only in stores, and
- 26 percent plan to shop exclusively online.
Online remains the leading destination for last-minute purchases, with 46 percent of respondents planning to buy online, followed by 33 percent indicating department stores and 26 percent citing discount retailers.
The survey also found that U.S. consumers had completed about half of their holiday shopping by early December. Respondents who still had shopping remaining cited common reasons including unresolved gift decisions, competing financial priorities, and waiting on information from friends or family.
A growing share of respondents, 31 percent, said they planned to give “experience-based” gifts such as event tickets, classes, or travel, continuing a trend NRF analysts say has strengthened over the past decade.
Beyond national forecasts, Arizona retailers are leaning into this final shopping weekend with a shift toward experience-based promotions as well rather than pure discounting. According to Dallas McLaughlin Digital Marketing, some Phoenix and Scottsdale-area businesses have rolled out in-store events, exclusive giveaways, and AI-driven loyalty programs designed to keep shoppers engaged longer and convert last-minute browsers into buyers. Local marketing analysts say experiential retail is gaining traction across the Valley as stores compete not only on price but on atmosphere and interaction, a strategy they expect to play out across Super Saturday crowds.
Looking beyond Christmas Day, the NRF noted that nearly seven in ten shoppers expect to continue making purchases after December 25 to take advantage of post-holiday discounts and to redeem gift cards.
The holiday retail season, as defined by the NRF, spans November 1 through December 31. The organization projects total holiday retail sales will exceed $1 trillion for the first time, forecasting growth between 3.7 and 4.2 percent over 2024’s totals.
Super Saturday, sometimes referred to as “Panic Saturday” in the retail industry, regularly delivers some of the heaviest foot and online traffic of the season as consumers rush to finish gift buying before Christmas. Retailers traditionally extend store hours and concentrate promotional campaigns around the date.
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.
