Arizona ranks 45th out of 50 states in overall affordability
Arizona Ranks 45th in Affordability, Housing Costs Drive Decline | 17GEN4
Arizona ranks 45th out of 50 states in overall affordability, placing it among the least affordable in the nation, according to a 2026 report from the Common Sense Institute (CSI) Arizona.
The analysis, titled “The Inflation Hangover: How the Post-Pandemic Price Surge Reshaped Affordability in America,” compares household incomes to the cost of essential expenses including shelter and utilities, groceries, health insurance, car insurance, gasoline, child care, and taxes. Arizona households retain roughly 19.6% of their gross income after those costs—about $1,700 per month—compared with a national average of 24.7%, or about $2,170. The state has fallen 12 spots since 2019, when it ranked 33rd.
Housing and utilities are the primary driver. Shelter and utility costs for a typical Arizona household rose by about $9,012 annually between 2019 and 2025, a roughly 59–60% increase that ranked among the largest in the country. Overall essential expenses climbed about $19,300 per year for Arizona households over that period, exceeding the national average increase of roughly $15,400. Even though household incomes rose about 33%, the gains did not keep pace with the higher costs. The report also notes relatively poor rankings for groceries, car insurance, and gasoline.
CSI attributes the shift largely to post-pandemic demand pressures, rapid population growth, and insufficient housing supply. Executive Director Katie Ratlief has described housing as the central issue and pointed to the need for increased supply. The institute, often described as center-right or conservative-leaning and with ties to former Gov. Doug Ducey, models the figures for a representative household.
Local reporting has highlighted the findings amid ongoing discussions of cost-of-living pressures in the Phoenix metro and across the state. Arizona remains more affordable than a handful of higher-cost states such as California, New York, Massachusetts, Oregon, and Florida in the CSI rankings, but the drop from the middle of the pack has drawn attention from policymakers and advocates focused on housing and household budgets. 17GEN4.com
Arizona Ranks 45th in Affordability, Housing Costs Drive Decline | 17GEN4
Arizona ranks 45th nationally in affordability per a Common Sense Institute report, down from 33rd in 2019, as housing and other essential costs outpace income growth. Details from 17GEN4 News.
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For the full methodology and data, refer to the Common Sense Institute Arizona report and the local coverage linked above.
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