New Report Reveals Persistent Housing Affordability Crisis in Arizona

By Daniel Stefanski |

Housing affordability remains a pressing issue as the 2024 General Election approaches in Arizona. The Common Sense Institute Arizona recently released its “Arizona Housing Affordability” report for the third quarter of 2024, detailing significant challenges in the state’s housing market. This analysis underscores the severe housing shortage, soaring costs, and persistent affordability crises faced by many residents.

The report reveals that Arizona is currently short of 65,721 housing units. Additionally, average home prices have surged nearly 23% above the pre-pandemic trends. The decline in building permits further exacerbates the state’s struggle to meet housing demand, placing more pressure on prospective homeowners.

“High housing costs are severely limiting homeownership opportunities, particularly for lower-income families and first-time buyers,” stated Zachary Milne, Senior Economist and Research Analyst. He acknowledged that while slight improvements in mortgage rates provide some relief, the overall housing shortfall continues to expand, highlighting the urgent need for effective housing policies to enhance supply and affordability.

According to CSI, rectifying Arizona’s housing deficit could take a minimum of ten years. If housing prices were to decrease at the current rate observed in July and August, it would take 41 months for them to align with the 2012-2019 trends. New homebuyers today face an additional $500 in monthly mortgage costs, and Maricopa County could take over 85 years to address its housing shortage.

Arizona Senate President Warren Petersen addressed the report, criticizing Governor Hobbs for vetoing the bipartisan Arizona Starter Homes Act, which halted new construction in key areas. He asserted that such actions have adversely affected the housing supply, making it challenging for many Arizonans to achieve homeownership amid rising prices. “Republicans will continue to present bills aimed at alleviating the supply shortage next session,” he added hopefully.

As the election looms, polls indicate that housing affordability ranks among the top three concerns for voters nationwide, significantly influencing the upcoming elections in November.