Arizona has become one of the least affordable states, report says

Arizona is now one of the least affordable states in the U.S., according to a new report from the Common Sense Institute, a conservative-leaning Arizona policy organization.

The report’s authors considered costs for housing, utilities, gas, groceries, child care, insurance and taxes and calculated how much income the average household in each state would have left over after covering those expenses.

Arizona ranked 45th among states for affordability.

The report notes Arizona has become less affordable just in the last few years. Pre-pandemic, the state ranked 33rd for affordability. But, the report estimates Arizona households needed to spend $19,300 more per year on essentials in 2025 compared to 2019.

“Although estimated household income did rise over 33% in the state, this was insufficient to cover the increased costs faced by households,” the report says. “In Arizona, shelter and utilities costs for a family of four increased 59% — the fourth largest percentage increase out of all states and Washington D.C. Arizona also saw some of the fastest growing groceries (2nd fastest) and car insurance costs (4th fastest) over the 6 year period.”

The report says a post-pandemic spike in inflation drove up costs across the country. It says Arizona is still feeling the impact of that, especially when it comes to housing prices.