Arizona still has a supply and demand imbalance when it comes to housing, according to a new report from the Arizona-based think tank, Common Sense Institute.
The report says just 42% of households in the state would be able to afford a new mortgage — down from 66% in 2019.
Homeownership remains out-of-reach for many Arizonans in spite of the fact that home prices fell nearly 3% in 2025.
“That’s 3% on a level that was so high historically, that while that is some progress, it’s not really changing the broader dynamics of the housing market, which is that housing is very, very expensive,” said Zachary Milne, one of the report’s authors.
The report estimates Arizona is nearly 56,000 units short of immediate demand.
But construction appears to be slowing. The report says the number of housing permits issued in the state last year fell to the lowest point since 2019.
“We’re not quite building enough to close that shortfall in any meaningful period, and as a result we’re still seeing elevated housing prices,” Milne said.
-
The bill’s sponsor, Rep. Jeff Weninger, says instead of upfronting infrastructure costs onto new home prices, it will allow for those costs to be paid over time. -
Despite the Navajo Nation Department of Justice advising government staff not to testify about a failed, multimillion-dollar housing project — one employee broke ranks earlier this week. -
The Arizona Board of Regents has filed a lawsuit, on behalf of Arizona State University, so the school can acquire a privately owned historic property. -
Over the last year, the Navajo Nation Council has been investigating what happened to $24 million in federal COVID relief funds allocated for the now-defunct ZenniHome, a failed housing initiative at the Navajo Generating Station. -
A state agency acted illegally in imposing what developers are calling a "tax" they have to pay to build in certain areas that don't have regular sources of water, a judge has concluded.
