The Arizona Research Center for Housing and Economic Solutions (ARCHES) recently disclosed figures that should raise eyebrows across the state. As pointed out by Alison Cook-Davis, Research Director at the ASU Morrison Institute for Public Policy, "It’s kind of a first for Arizona because we’re known to be such an affordable state." But the illusion of affordability may be shattering, with the state's cost of living exceeding the national average, largely due to escalating housing costs. According to ABC15, homeowners and renters are buckling under the weight of "cost-burden," described as spending over 30% of income on housing—a situation affecting 22% of homeowners and an alarming 54% of renters statewide.
An ASU study highlights a particularly troubling trend: wage growth cannot keep pace with housing costs. In the data obtained by the ASU News, the median incomes fall short for a single person to afford even a one or two-bedroom apartment, across the top five occupational groups in Arizona.
Despite a 2023 spike in housing construction, the median wage earners are struggling to find a foothold in an increasingly unaffordable market. Cook-Davis underscored the urgency of the situation, indicating that "especially for housing at the median income levels" there is a "dire need," according to ABC15.
At the second annual Housing and Water Policy Summit, hosted at the Renaissance Downtown Phoenix Hotel, experts convened to discuss these critical issues. The summit drew more than 200 attendees, including Arizona's elected officials, to unpack the implications highlighted in the "State of Housing in Arizona Report." Cook-Davis, when presenting at the summit, noted that mobile homes, often seen as a budget-friendly housing option, saw prices skyrocketing by 80% from 2017 to 2022 in Arizona.
The report not only underscores the increase in home values—which have risen about seven times faster than incomes between 2010 and 2023—but also reveals that home purchases plummeted by 22% in comparison to 2022, as shared by ASU News. With a median wage worker, only 39% of Arizona employees could comfortably cover the cost of a one-bedroom apartment, and a meager 25% could afford a two-bedroom, according to statistics from the study.
These findings from the Morrison Institute for Public Policy are a clarion call for strategic planning and innovative solutions to combat the housing affordability crisis now gripping Arizona. While acknowledging the complexities involved, Cook-Davis points to ongoing efforts in larger municipalities where millions are being invested into affordable housing projects. "Everyone is trying to sort of use the best information they have to address it in their own communities," Cook-Davis told ABC15. This reflects the approach being adopted to foster accessible housing options for Arizonans whose budgets are stretched to the limit.
