by Staff Reporter | Mar 6, 2026 | News
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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by Ethan Faverino | Jan 18, 2026 | Economy, News
By Ethan Faverino |
State Representative Nick Kupper (R-LD25) introduced House Bill 2325, also known as the Own Something and Be Happy Act. This legislative measure is designed to reduce the growing influence of large institutional investors in Arizona’s single-family housing market and restore ownership opportunities for working families.
The bill, which amends Title 44 of the Arizona Revised Statutes by adding Chapter 42, targets corporate dominance that has driven up home prices and made it harder for Arizona residents—particularly first-time buyers—to purchase homes in their communities.
Key provisions include:
- Capping institutional ownership at no more than 50 single-family homes statewide.
- Prohibiting bulk purchases, defined as acquiring two or more single-family homes in a single transaction or within a rolling 12-month period by the same entity.
- Imposing a 60-day waiting period, during which institutional investors are prohibited from bidding on or purchasing newly listed single-family homes, giving individual buyers priority.
Institutional investors—defined as entities owning or managing 10 or more single-family homes in Arizona—exceeding the cap on the bill’s effective date would be prohibited from new acquisitions and encouraged to voluntarily reduce holdings to achieve compliance.
The legislation includes targeted exemptions to avoid unintended impacts on housing efforts, such as:
- Nonprofit organizations focused on affordable housing
- Government housing agencies
- Community land trusts
- Small property owners (fewer than 50 homes)
- Pension funds of fiduciary entities with assets under $5 million
- Homebuilders whose primary business is constructing new homes for individual sale
To ensure transparency and accountability, HB 2325 requires institutional investors to file annual disclosures with the Arizona Department of Housing by March 15, detailing the single-family homes they own, purchase, or sell, along with their compliance with applicable laws.
Enforcement authority rests with the Arizona Attorney General, who may investigate violations, seek injunctive relief, or pursue other remedies. If the Attorney General declines action, county or city attorneys in the relevant jurisdiction are empowered to step in.
Representative Kupper emphasized the bill’s alignment with broader national concerns over housing affordability. “President Trump is right to call this out,” Kupper stated. “Homeownership has long been central to the American Dream and the reward for hard work. When large investment firms buy up neighborhoods, families lose, and prices climb. HB 2325 puts Arizona on the side of working people who want to own a home, raise a family, and stay rooted where they live.”
“Housing costs have climbed nationwide as institutional investors expanded their residential footprint, while homeownership rates for younger Americans have stalled,” continued Kupper. “In Arizona, population growth and limited housing supply have intensified the squeeze on first-time buyers. This bill draws a clear line. Arizona homes should be owned by Arizona families, not treated like financial instruments by distant corporations.”
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by AZ Free Enterprise Club | Jan 8, 2026 | Opinion
By the Arizona Free Enterprise Club |
Arizona has hardly had an opportunity to recover from the aftershocks of Biden-omics. The trillions of dollars injected into the economy through the so-called Inflation Reduction Act continue to work their way through the system in the form of higher prices and eroded purchasing power. Open-border policies that expanded the labor supply at the lower and middle ends of the wage scale have depressed wages. And the Biden Administration’s unprecedented regulatory burden on industry, a nearly $2 trillion drag on the economy, will take far longer than a year to unwind and correct.
Unfortunately for Arizona, efforts to fix these problems at the federal level cannot be fully realized here at home because Katie Hobbs remains our Governor.
Hobbs has harmed Arizona’s recovery, overseeing a massive fall from 4th in the nation in job growth to 47th. She inherited a booming local economy after a Republican legislature and Governor ushered in a 2.5 percent income tax, incentivized entrepreneurs and small businesses, prioritized deregulation, and expanded choice and freedom in education. Yet Hobbs has managed to squander that opportunity. In fact, it takes a special skill set to be perfectly set up for success and then drive a working model into the ground.
And Hobbs knows she’s to blame. That’s why she’s now desperately trying to reinvent herself by pushing Trump-esque tax cut rhetoric while clinging to the same big-spending, high-tax policies that caused the damage in the first place. At her core, she remains a California-style Democrat who would rather govern Newsom-style than embrace the Republican solutions that actually work. That’s why, despite a Republican legislature that has delivered tax relief bills, more disciplined budgets, and common-sense deregulation, she has earned a reputation as the veto queen.
As a result, Arizonans are dealing with real affordability woes, and they best not hinge their hopes on Hobbs.
Despite responsible budgeting and repeated tax relief efforts by Republican lawmakers, affordability pressures continue to mount. Taxes are creeping higher at every level of government. Utility bills have surged. Housing costs are outpacing wage growth. And programs intended to help struggling families are losing billions to fraud, waste, and mismanagement.
That is why the 2026 legislative session must focus on Affordable Arizona…
>>> CONTINUE READING >>>
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 | 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.
