Arizona home prices continue to be a major issue for people in the closing weeks of the 2024 General Election.
Last week, the Common Sense Institute Arizona unveiled its report for “Arizona Housing Affordability” for quarter 3 of 2024, sharing a “comprehensive analysis that details current challenges in Arizona’s housing market, including the ongoing housing shortage, escalating costs, and affordability issues that persist across the state.”
The report highlights that the state “is currently experiencing a housing shortfall of 65,721 units,” that “the average home price is nearly 23% higher than it would have been if prices had maintained the pre-pandemic trend,” and that “the number of building permits issued in Arizona has continued to drop, affecting the state’s ability to meet housing demand.”
“The high costs of housing in Arizona are creating significant barriers to homeownership, especially for lower-income families and first-time buyers,” said Zachary Milne, Senior Economist and Research Analyst. “While minor improvements in mortgage rates have provided some relief, the state’s overall housing deficit continues to widen, reflecting the need for housing policies that boost supply and affordability.”
CSI found that “it would take at least ten years for Arizona to resolve this [housing] deficit, that “it would still take 41 months for housing prices to fall back in line with the 2012-2019 trend if prices continued to decline at this pace [of July and August], that “new homebuyers today face nearly $500 more in monthly mortgage costs,” and that “it would take Maricopa County over 85 years to close their housing deficit.”
In a comment to AZ Free News about the report, Arizona Senate President Warren Petersen said, “It’s truly unfortunate the Governor vetoed the bipartisan Arizona Starter Homes Act and halted new home construction in two of the most booming areas in the Valley. Her actions have negatively impacted Arizona’s housing supply by contributing to the shortage, and as a result, hardworking Arizonans are having a difficult time achieving their American dream of homeownership because of skyrocketing prices. Republicans will continue to put bills on her desk to help alleviate the supply shortage next session, and we hope she will do the right thing by signing them.”
Recent polls have indicated that the issue of housing affordability is a top-three concern for many voters around the country, including in Arizona, affecting the upcoming election in November.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
While the Biden-Harris administration is still boasting of the success of the CHIPS and Science Act, the Intel Corp. announced it will cut 15,000 jobs across the nation, “as part of the broad-based cost savings plan.” New reports show that almost four hundred of those job cuts will be at the company’s Ocotillo campus in Chandler.
As reported by Phoenix Business Journal, the series of layoff has come despite an upcoming injection of billions of taxpayer dollars via the CHIPS Act aimed at expanding the Chandler facility. Intel as a whole has approximately 12,000 employees in Arizona.
In a written statement Intel explained, “As part of the broad-based cost savings plan we announced in August, we are making the hard but necessary decisions to reduce the size of our workforce. These are the most difficult decisions we ever make, and we are treating people with care and respect. These changes support our strategy to become a leaner, simpler and more agile company as we position Intel for long-term sustainable growth.”
According to The Center Square, the office of Arizona’s Democrat Governor Katie Hobbs was quick to announce the mobilization of state taxpayer-funded resources being made available to the laid off Intel workers.
Spokesman Christian Slater told the outlet, “The Governor’s Office is already mobilizing rapid response resources at DES to connect affected workers with the resources they need to receive support and find new employment. Ensuring that every Arizonan has access to good-paying jobs is a top priority for Governor Hobbs, and she will continue bringing together workers and businesses to navigate challenges, create jobs and build an economy that helps every Arizonan thrive.”
The company was recently granted up to $8.5 billion in CHIPS Act funding, leading to scrutiny over their 15k global layoffs.
I've been asking AZ politicians about this, given that AZ was one of the four states to which the money was allocated for Intel.https://t.co/m2sIsRzW1i
In an August statement, Hobbs stressed Intel’s expansion in the state after the non-specific “cost savings plan,” was announced saying, “They’re expanding here. We’re thrilled to have their expansion here. We’re working with them on workforce initiatives to grow the skilled pipeline of workers that they need. We’re continuing to do that.”
Any direct mention of the billions of dollars earmarked for Intel via the CHIPS Act was decidedly absent from the Hobbs administration’s statement. However, a statement from the office of Senator Mark Kelly (D-AZ) doubled down on the multi-billion-dollar giveaway, which failed to prevent the layoffs.
Kelly’s office wrote that the round of layoffs, “further underscores the importance of the CHIPS Act.” His office added, “American companies like Intel are facing unprecedented competition from China, but thanks to the CHIPS Act, we’re making sure Intel, and other companies can manufacture the most advanced chips right here in America—creating thousands of construction jobs, and generating even more good-paying, permanent technician jobs in Chandler and across the state that don’t require a four-year degree.”
As reported by the New York Post in August, despite the passage of the CHIPS Act, Intel suffered a staggering $1.6 billion in losses, with CEO Pat Gelsinger saying, “Simply put, we must align our cost structure with our new operating model and fundamentally change the way we operate,” per the memo published to the firm’s website. “Our revenues have not grown as expected – and we’ve yet to fully benefit from powerful trends, like AI. Our costs are too high, our margins are too low.”
When the initial announcement broke in August, Republican Senate candidate Kari Lake placed the blame for Intel’s problems squarely on the Biden-Harris administration in a post to X, writing, “For over 45 years, Arizona has been Intel’s U.S. manufacturing powerhouse. In the last job reports, Intel Shares plunged 20%, forcing them to lay off more than 15% of their employees. These are the devastating consequences #Bidenomics is having on our state. In the US Senate, I will work with President Trump to cut the deficit, turbocharge the economy, & bring back good jobs so that all companies both big & small can thrive in State 48.”
For over 45 years, Arizona has been Intel’s U.S. manufacturing powerhouse.
In the last job reports, Intel Shares plunged 20%, forcing them to lay off more than 15% of their employees.
These are the devastating consequences #Bidenomics is having on our state.
Intel’s CEO also noted that staff drawdowns through voluntary exits in September via “early retirement and separation offerings,” already had the company almost halfway to its 15k downsizing goal. But Gelsinger warned at the time, “We still have difficult decisions to make and will notify impacted employees in the middle of October.”
A new report from the Common Sense Institute Arizona (CSI) titled the “Inflation Misery Index” was released last week. The report illustrates how unsustainably expensive it has become to live and raise a family in Arizona due to ballooning inflation under the Biden-Harris Administration. The report also breaks down the cost of living increase that has battered Arizona families since 2019 and demonstrates irrefutably that the cost of maintaining the same standard of living has risen 24% since before COVID.
In a press release from CSI, Zachary Milne, Senior Economist and Research Analyst explained, “The prolonged period of high inflation has taken a serious toll on the financial stability of Arizona’s households. Our findings highlight not only the immediate increase in costs for essential goods and services but also the long-term decline in purchasing power. As inflation continues to outpace income growth, many Arizonans are facing tough financial choices to maintain their standard of living.”
Over the past 43 months, inflation in Arizona has caused the average household to lose 24% of their purchasing power. That’s nearly $25,000 in lost income!
— Common Sense Institute Arizona (@CSInstituteAZ) October 9, 2024
Sharing the report in a post to X, CSI wrote, “Over the past 43 months, inflation in Arizona has caused the average household to lose 24% of their purchasing power. That’s nearly $25,000 in lost income!”
According to the report’s key findings, the Inflation Misery Index “holds constant consumption preferences through time,” and mathematically accounts for “normal” levels of inflation and personal income growth. The index uses 2019 as a baseline “because it precedes both the recent inflationary surge and the stimulus income received from the government in response to the pandemic in 2020.”
With these parameters in mind, CSI reported that the average person living in Arizona is compelled to spend $9,996 more per year in order to purchase the same quantity of goods and services as they did in 2019.
The report also clearly defines the increase per household: “Excess inflation over the last 43 months means the average household in Arizona must spend $24,972 more per year to consume at 2019 levels. This means that the average household has effectively lost 24% of their income to inflation.”
Broken down categorically, the inflation has impacted Arizona families in the following amounts:
$6,900 increase for housing and utilities.
$4,371 increase in food expenses.
$1,189 increase in recreational spending.
$772 increase in fuel/gasoline.
The report concluded, “It will take a prolonged period of normal or below-average (sub 2%) inflation coupled with strong income growth to recover the purchasing power lost by the post-covid inflationary crisis.” In stark contrast to the White House narrative extolling alleged slowing of inflation, the CSI wrote, “The slowing rate of inflation alone is insufficient to undo the damage caused by the rapid rise in the price level.”
For Arizonans, the dollar doesn’t go as far as it used to.
In fact, Personal Consumption Expenditures per capita increased 7.2% ($27.1 billion) in 2023, spending – 12.1% more on rent, & – 9.5% more for health care.
Just one day prior, Congressman David Schweikert (R-AZ) posted the findings of the Congressional Joint Economic Committee Republicans noting, “For Arizonans, the dollar doesn’t go as far as it used to. In fact, Personal Consumption Expenditures per capita increased 7.2% ($27.1 billion) in 2023, spending 12.1% more on rent, & 9.5% more for health care.” Schweikert noted that Arizona had the fifth highest increase.
A first-term west valley mayor in Arizona is helping to lead his city to greater economic prosperity.
Late last month, City of Peoria Mayor Jason Beck wrote an op-ed for a local publication, touting the work he and members of his municipal council were doing to “ensur[e] that Peoria remains an attractive destination for businesses while providing essential opportunities for our residents.”
Beck announced that the Peoria City Council had given a greenlight to amendments for the Peoria General Plan 2024 in a September 17 meeting. He reported that the approved amendments would “significantly enhance our city’s economic landscape and improve the quality of life for all residents.”
In the op-ed, Beck discussed a vital part of the amendments considered and rubberstamped by the council, which was a “new state land designation [that] includes the 1,620-acre North Peoria Gateway and the 6,700-acre Peoria Innovation Core.” He stated that “this designation will enable us to create a cohesive master plan for these areas, promoting strategic and well-coordinated growth rather than a fragmented development approach.”
The mayor also addressed some concerns that may have been percolating throughout the community in the lead-up to the action from the city council. He assured readers that “in no way do these designations change zoning or diminish protections for our natural resources. Existing city ordinances…will continue to safeguard the landscapes and wildlife that we all appreciate as Peoria residents.”
Beck championed the work of his municipality to “build a resilient future for Peoria” by “enhanc[ing] our ability to protect our environment while fostering economic development that benefits all residents across our city.” He forecasted the upcoming October council meeting, where the members would talk about additional economic development strategies to grow Peoria.
Under Beck’s visionary leadership, the City of Peoria has cemented its status in the Grand Canyon State of being one of the up-and-coming economic bastions in Arizona. The Mayor’s TYR Tactical is one of Peoria’s largest employers, and he used that experience to shape his economic development vision for the city’s future. Before taking office as the city’s chief executive, he campaigned on the construction of a city owned airport “that will create thousands of jobs and billions in economic impact” for Peoria, as well as the “creation of culture that is not only Pro Business but moves at the speed and efficiency of business.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
Congressman Juan Ciscomani (R-AZ) released a new advertising campaign Thursday taking aim at the enormous economic fallout of the Biden-Harris administration’s fiscal policies. Those policies are also supported by Ciscomani’s Democrat opponent, former Arizona State Senator Kirsten Engel.
Sharing the new ad in a post to X, Ciscomani wrote, “Arizonans are feeling the impact of rising prices, an open border, and out-of-touch politicians pushing failed policies. My opponent, Kirsten Engel, supports the reckless spending that got us here. ‘It’s exactly what we need,’ said Engel. I’m focused on real solutions: bringing costs down, securing our border, and standing up for Arizona families. Watch my latest ad to learn more. #AZ06”
According to a campaign press release, the advertisement is designed to capture, “everyday struggles Arizonans face: rising costs, an open border, and out-of-touch D.C. politicians who continue to push policies that worsen inflation.”
The partisans love to talk without making any progress. As Arizona's most bipartisan member of Congress, I'm delivering results: ✅Better water infrastructure ✅Improved roads ✅Secure border And… 🇺🇸Endorsed by 40+ local leaders, police, border agents, & small businesses
As reported by the Common Sense Institute of Arizona, as of September 2024, the average Phoenix household is spending $1,004/month more than they would have at a 2% inflation rate.
The CSI of AZ reported, “Since the end of 2020, the typical Arizona household would have had to spend a cumulative $39,722 more on food, housing, transportation, and other goods and services to buy the same stuff as they were buying three years ago.”
“In Congress, I’ve been focused on delivering real solutions for Arizona – securing the border, cutting wasteful spending, and lowering taxes for middle-class families,” Ciscomani said in a statement. “My opponent, Kirsten Engel, supports the same reckless, inflation-driving policies that have made it harder for Arizonans to afford everyday essentials. We need leadership that understands our struggles and is willing to take decisive action, not another out-of-touch politician who rubber-stamps the failed policies that got us here.”
Citing Engel’s legislative history of voting against essential measures like the Border Strike Force, Ciscomani continued, “Kirsten Engel’s out-of-touch record speaks for itself. From voting against border security measures to advocating for reckless spending, Engel has proven time and again that she would fit right in with the D.C. politicians who have failed Arizona families.”
Shortly after releasing the ad, Ciscomani addressed the tightly choreographed “Border Visit” conducted by Vice President Kamala Harris in a statement to KVOA saying, “Vice President Harris’ visit to the border smells like nothing more than a photo opportunity to try and score political points. For three and a half years, the vice president has been in a position to address this crisis but instead she has ignored it. As a result border districts, like mine, have suffered under her lack of leadership. Our communities have become less safe and vulnerable people are being exploited by coyotes, human smugglers, drug cartels, and transnational criminal organizations. If she was truly serious about addressing the crisis at the border, she would have done something as the sitting vice president to help border communities that have been calling for help.”
Arizona voters are increasingly worried about the rising cost of housing as the November General Election approaches.
Last month, Noble Predictive Insights (NPI) released the findings of a poll, showing that “affordable housing has officially cemented its status as a top-tier issue for Arizona voters.”
In the top issues facing Arizona for this survey, “Affordable Housing” registered third in importance. “Inflation” and “Immigration” were the top two issues on the minds of Arizonans.
Affordable Housing was ranked as the third-highest issue for Republicans, Democrats, and Independents alike. Inflation was also a top three issue for all three voter demographics.
“Immigration, abortion, inflation – when these issues come up, the parties know what they’re talking about. And voters know who they trust. Housing is a different animal. Housing costs are just too high, and it’s becoming a bipartisan concern,” stated David Byler, NPI Chief of Research. “This is a rare opportunity for both parties – an important issue where neither side has a pre-existing advantage or even a defined message. The party that figures out how to win on housing will benefit hugely.”
The survey conducted by NPI occurred in mid-August with just over 1,000 registered voters.
According to Zillow, the average home value in the State of Arizona is $431,492 as of August 31, which is up 2.4% over one year. Meanwhile, the average United States home value, per Zillow, is $361,282, which is up 2.9% over the past year.
Arizona Senate President Warren Petersen addressed the poll’s findings with AZ Free News, saying, “The American dream of homeownership has become unattainable for the working-class under the Biden-Harris Administration. We attempted to make homes more affordable last year for our citizens with the Arizona Starter Homes Act, but unfortunately, the Governor vetoed the bill after caving to pressure from special interests and the Biden-Harris Administration’s Department of Defense. To add insult to injury, the Governor halted home construction in two of the most booming areas of the Valley, worsening Arizona’s supply shortage. Republicans at the Legislature will continue to draft commonsense solutions to get government out of the way, and to speed up home construction, so prices can come down. We’re hopeful the Governor will do the right thing by signing those bills into law.”
In a piece for The Heritage Foundation this summer, EJ Antoni, a Research Fellow, wrote about the reasons for skyrocketing home values and costs in Arizona. He said, “Over the last four years, the federal government spent trillions of dollars it didn’t have and far more than it was capable of even borrowing. To cover the shortfall, the Federal Reserve created money for the Treasury to borrow and spend. While that solved the federal finance problem, it also unleashed the worst inflation in four decades and spawned a cost-of-living crisis. While inflation causes prices everywhere to rise, the housing market in particular has seen stratospheric increases in sales prices. Part of the Fed’s plan of creating trillions of dollars for the Treasury was keeping interest rates artificially low, and that made borrowing extremely inexpensive, including borrowing for a home.”
Antoni added, “Potential home buyers had access to so much cheap credit that they collectively bid up the prices of homes to never-before-seen levels. After the Fed’s low interests and easy credit created inflation, however, the central bank swung the monetary levers in the other direction and initiated fast interest rate hikes. That suddenly made borrowing prohibitively expensive for countless Americans.”
As Antoni concluded his piece, he stated that “in Arizona, it has reached the point where a single working adult needs to earn $97,000 to live comfortably. That’s over 50 percent higher than the median income for a single full-time worker. If you want to comfortably support a family of four in Arizona, you’ll need to earn $231,000. Even with two working adults, they’d need to each earn almost twice the median income of a full-time worker to hit that annual income.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
