Arizona Among Top Three For Spending Income On Housing And Utilities

Arizona Among Top Three For Spending Income On Housing And Utilities

by | 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. 

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

Arizona Lawmakers Introduce Bill To Eliminate State Sales Tax On Utility Bills

Arizona Lawmakers Introduce Bill To Eliminate State Sales Tax On Utility Bills

by | Jan 17, 2026 | Economy, News

By Ethan Faverino |

State Representatives David Marshall (R-LD7) and Ralph Heap (R-LD10) introduced House Bill 2269, a measure to eliminate the state sales tax on electric and gas utility bills for Arizona residents and businesses.

The proposed legislation would suspend the state’s 5.6% sales tax on electricity and natural gas utilities until either $2.3 billion in cumulative tax relief has been provided to Arizonans or December 31, 2046—whichever comes first.

Once the $2.3 billion threshold is reached, the Legislature would then decide whether to extend, modify, or reinstate the exemption.

“People are getting crushed by rising costs, making it harder to live and do business in our state,” said Representative Marshall. “Almost everyone pays a local utility for electricity or gas. Eliminating the tax on this expense represents one of the most immediate and direct ways we can help working families keep costs affordable.”

The 5.6% tax on electricity and gas quietly adds up on monthly bills, leaving the average household paying more than $100 a year in utility tax—funds that could instead support necessities like groceries, housing, and childcare.

Representative Marshall highlighted a structural concern with the current system: “Taxing electric and gas utilities creates a perverse incentive for the government to support increased rate hikes. If rates go up, the state gets more money. That leads some to view rate increases as a source of potential funds for their liberal pet projects. That’s not right; it’s time to put the people of Arizona first.”

“While we’re unsure of any legal way to get ratepayers’ money back, there are things we can do to help reduce costs today,” Marshall continued. “In my opinion, the next best thing we can do is try to provide justice by eliminating taxes on electric and gas utilities moving forward. That’s why, over the next 20 years, we are proposing no state tax on utilities until every penny of the $2.3 billion that was wrongfully extracted from the Arizona ratepayer is metaphorically ‘paid back’ to hardworking families.”

He added, “This bill will save most residents between $100 and $120 per year, on average. Once the $2.3 billion threshold has been met, then the state can determine what it wants to do with the exemption from there, including whether to reassess the tax or extend the exemption even further.”

Representative Heap pointed to actions taken by the Arizona Corporation Commission as the basis for the bill’s $2.3 billion figure: “In 2006, Arizona Corporation Commissioner Kris Mayes catered to outside special interests and adopted expensive renewable energy surcharges that cost ratepayers more than $2.3 billion over the last 20 years. This special interest slush fund also led to foreign-owned boondoggles like the Solana Generating Station, which Kris Mayes personally supported, and which cost ratepayers more than three times the above-market rate of power.”

“While repealing these mandates may help to prevent new costs,” Heap added, “it will do nothing to compensate customers for the unjust surcharges that Kris Mayes forced ratepayers to pay over the last 20 years.”

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