2006
ARIZONA’S HOUSING MARKET

g

...a glance

hou

sin

“The Bigger Picture”

GOVERNOR’S
HOUSING FORUM
September 6-8, 2006
El Conquistador Resort

This report was prepared for distribution at the
Governor’s Housing Forum
September 6-8, 2006

APPENDICES
JANET NAPOLITANO
GOVERNOR

SHEILA D. HARRIS, PH.D.
DIRECTOR

TABLE 5
1990 and 2000 Median Home Value and
Household Income Data for Arizona Counties;
2004 Date for Arizona, Maricopa and Pima Counties
Dear Community Partner,
We are pleased to provide you with an update of the housing market in Arizona, as part of the
2006 Governor’s Housing Forum. This year, we are looking at “The Bigger Picture” – how
housing is the foundation for viable neighborhoods, cities and towns. The Forum this year will
Median Home Value

also address community involvement, housing development and quality design.
This report highlights difficulties that many working individuals and families have in finding
an affordable home in their community. As we plan for quality growth in Arizona, housing
which is affordable must be included in our planning. In order to have a productive community, everyone needs to have an affordable place to live.
Thank you for your assistance as we strive to provide housing that is affordable to the citizens
of Arizona.
Sincerely,

County Name
Apache
Cochise
Coconino
Gila
Graham
Greenlee
La Paz
Maricopa
Mohave
Navajo
Pima
Pinal
Santa Cruz
Yavapai
Yuma
State of Arizona

Median Household Income

Home Values Home Values
Increased
Increased
Faster Than Faster Than
Income*
Income*

%
%
%
%
%
%
Increase Increase
Increase
Increase Increase
Increase
199020001990
2000
2004
1990
2000
2004 1990-2000 2000-2004 1990 - 2000 2000 - 2004
2000
2004
$ 16,600 $ 41,700
151.2%
$ 14,100 $ 23,344
65.6%
85.6%
$ 59,700 $ 88,200
47.7%
$ 22,425 $ 32,105
43.2%
4.6%
$ 82,600 $ 142,500
72.5%
$ 26,112 $ 38,256
46.5%
26.0%
$ 58,600 $ 100,100
70.8%
$ 20,964 $ 30,917
47.5%
23.3%
$ 50,300 $ 80,900
60.8%
$ 18,455 $ 29,668
60.8%
0.1%
$ 40,700 $ 62,700
54.1%
$ 27,491 $ 39,384
43.3%
10.8%
$ 56,800 $ 86,500
52.3%
$ 16,555 $ 25,839
56.1%
-3.8%
$ 84,700 $ 129,200 $ 162,431
52.5%
25.7% $ 30,797 $ 45,358 $ 47,207
47.3%
4.1%
5.3%
21.6%
$ 74,900 $ 95,300
27.2%
$ 24,002 $ 31,521
31.3%
-4.1%
$ 51,500 $ 77,000
49.5%
$ 19,452 $ 28,569
46.9%
2.6%
$ 76,500 $ 114,600 $ 139,335
49.8%
21.6% $ 25,401 $ 36,758 $ 38,800
44.7%
5.6%
5.1%
16.0%
$ 53,400 $ 93,900
75.8%
$ 21,301 $ 35,856
68.3%
7.5%
$ 71,500 $ 94,700
32.4%
$ 22,066 $ 29,710
34.6%
-2.2%
$ 85,300 $ 138,000
61.8%
$ 22,060 $ 34,901
58.2%
3.6%
$ 63,700 $ 85,100
33.6%
$ 23,635 $ 32,182
36.2%
-2.6%
$ 79,700 $ 121,300 $ 145,741
52.2%
20.1% $ 27,540 $ 40,558 $ 41,995
47.3%
3.5%
4.9%
16.6%

* These numbers were derived by subtracting the percent increase in "median household income" from the percent increase in "median home values."
Note 1: The American Community Survey data was used for the 2004 home value estimates and median household income numbers. For Maricopa County, the
upper bound estimates were used, but for Pima County and Arizona the mid-point estimates were selected.
Note 2: The 2004 data from American Community Survey is in 2004 inflation-adjusted dollars.

Sheila D. Harris, Ph.D.
Director, Arizona Department of Housing

1700 WEST WASHINGTON • SUITE 210 • PHOENIX, AZ 85007 • 602-771-1000 • FAX 602-771-1002
TTY 602-771-1001 • WEBSITE www.housingaz.com
Home of the Arizona Housing Finance Authority

DATA SOURCE: Arizona Department of Housing and U.S. Census Bureau - 1990 and 2000 censuses, plus the
2004 American Community Survey.

13

ARIZONA’S HOUSING MARKET

APPENDICES

...a glance

TABLE 4
Employment Growth and Housing Affordability by Industry
RURAL ARIZONA

Industry

Median
Rural
Hourly Wages
Rural
Employment Employment Mohave
Can Afford
Rural
Rural
Change
County (for
To Buy a
Change
2001-2005
Employment Employment 2001-2005
Rural
MedianPercent
2001
2005
Numbers
Arizona) Priced House

Natural Resources and Mining
5,400
Construction
22,600
Manufacturing
15,500
Wholesale Trade
7,100
Retail Trade (Retail store workers)
74,500
Transportation, Warehousing and Utilities
8,800
Information (Publishing, motion pictures and videos, radio and TV
stations and telecommunications)
4,600
Finance and Insurance
1,400
Real Estate Rental and Leasing
7,900
Professional and Business Services (Legal services, management
services, computers services, accounting services, engineering
services, payroll services)
19,200
Educational Services (Businesses that provide educational
services to schools, colleges and universities plus specialized
schools such as computer training, language schools, flight training,
cosmetology)
2,112
Health Care and Social Assistance
32,288
Leisure and Hospitality
39,300
Other Services (Auto repair shops, barber shops, other repair
shops)
11,100
Government - Federal, State and Local (All government employees
including teachers, police)
97,600
Total Employment
319,900

5,300
28,700
17,600
7,800
80,800
9,700

(100)
6,100
2,100
700
6,300
900

4,700
3,200
7,500

-1.9%
27.0%
13.5%
9.9%
8.5%
10.2%

$
$
$
$
$
$

Can Afford
To Rent a
2-BDRM
Apartment

19.79
13.57
12.02
13.88
9.79
14.37

No
No
No
No
No
No

Yes
Yes
No
Yes
No
Yes

100
1,800
(400)

2.2% $ 13.11
128.6% $ 12.46
-5.1% $ 13.03

No
No
No

Yes
No
Yes

23,800

4,600

24.0% $ 15.34

No

Yes

2,552
38,548
43,900

440
6,260
4,600

20.8% $ 13.47
19.4% $ 12.97
11.7% $
-

No
No
No

Yes
Yes
-

11,100

-

0.0% $ 10.52

No

No

100,400
353,700

2,800
33,800

2.9% $ 15.82
10.6% $ 11.68

No
No

Yes
No

Low mortgage rates, and strong population growth, have been two of the major contributing
factors to the strong housing market in Arizona during the last few years. Housing price
appreciation in Arizona was the highest nationally from the first quarter of 2005 to the first quarter
of 20061. However, in the second quarter of 2006, there have been reports of weakening in the
housing market.
According to the Real Estate Center at Arizona State University, while home sale activity is down
from last year, the lack of affordable housing is still affecting buyers. The median price for a home
continues to rise (albeit at a slower rate) and mortgage interest rates are up from 5.3 percent in
June 2005 to 6.3 percent in 2006. Median housing prices have been increasing at a much faster rate
than median household income (county and state level data are presented in Table 5).
The analysis and tables in this document are based on the most recent employment and housing
information available from 2005 and early 2006 data. For purpose of discussion, the analysis of
affordability is based on the median home price or market rent for the area. Median price refers to
the middle of the price range. We choose to compare communities across the state based on the
median price for equitable comparison and consistency.
Finding affordable housing for working households will become increasingly challenging should
home prices and mortgage rates continue to rise throughout Arizona.
–– From 2000 to 2006, the median sales price of homes in Arizona increased by 74%, but during the
same period, median family income only increased by 15%.

Note: Mohave County hourly wages by industry data was used as a substitute for the same category of data in the rural areas of Arizona.

–– Median home prices in Arizona communities range from $76,500 in Douglas to $513,000 in the
Sedona area. In general, home prices are much higher in communities that attract tourists,
those with a higher percentage of seasonal, recreational, or occasional use homes and in urban
areas.

12

DATA SOURCE: Arizona Department of Housing and Arizona Department of Economic Security.

1

Based on the House Price Index (HPI) prepared by the Office of Federal Housing Enterprise Oversight (OFHEO)

1

GENERAL TRENDS IN ARIZONA’S HOUSING MARKET

APPENDICES

HOME PRICES vs.
MEDIAN INCOME

TABLE 3
Employment Growth And Housing Affordability by Industry
URBAN ARIZONA

Home prices in Arizona have been increasing faster than income:
The 1990 - 2000 Period (also see Table 5 in the Appendices)
— In 11 out of 15 Arizona counties, home values appreciation rates were higher
than increases in household’s income.
— Statewide, housing values increased by 52.2% compared to a 47.5% increase in income.
— The greatest variations between home values and household income appreciation rates
were reported in Gila (23.3%), Coconino (26.0%) and Apache Counties (85.6%).
The 2000 - 2004 Period (also see Table 5 in the Appendices)
— During this period, home values in Maricopa County increased by
25.7%, as compared to only a 4.1% increase in median household income.
— In Pima County housing values increased by 21.6% compared to a 5.6% increase in income.
— Statewide housing values increased by 20.1% while income increased by less than 3.5%.
— Even though estimates for the period from 2004-2006 are not available from the census
sources, data from other sources reveal that housing price appreciation rates have been
much higher than increases in the household median income.

2

Industry

Urban
Employment
2001

Natural Resources and Mining
4,200
Construction
151,000
Manufacturing
186,200
Wholesale Trade
88,800
Retail Trade (Retail store workers)
193,600
Transportation, Warehousing and Utilities
67,800
Information (Publishing, motion pictures and videos, radio and TV
stations and telecommunications)
49,300
Finance and Insurance
107,900
Real Estate Rental and Leasing
36,200
Professional and Business Services (Legal services, management
services, computers services, accounting services, engineering
services, payroll services)
300,700
Educational Services (Businesses that provide educational
services to schools, colleges and universities plus specialized
schools such as computer training, language schools, flight training,
cosmetology)
26,188
Health Care and Social Assistance
159,312
Leisure and Hospitality
190,700
Other Services (Auto repair shops, barber shops, other repair
shops)
73,600
Government - Federal, State and Local (All government employees
including teachers, police)
280,200
Total Employment
1,945,200

Median
Urban Hourly Wages
Urban
Employment Employment Maricopa
Can Afford
Change
Urban
Change
County
To Buy a
2001-2005 (for Urban
Employment
2001-2005
Median2005
Numbers
Percent
Arizona) Priced House

$
$
$
$
$
$

Can Afford
To Rent a
2-BDRM
Apartment

3,500
189,600
163,700
91,600
225,700
71,100

(700)
38,600
(22,500)
2,800
32,100
3,300

-16.7%
25.6%
-12.1%
3.2%
16.6%
4.9%

17.32
15.41
16.40
15.93
10.84
17.02

No
No
No
No
No
No

Yes
Yes
Yes
Yes
No
Yes

40,400
121,500
41,500

(8,900)
13,600
5,300

-18.1% $ 18.27
12.6% $ 16.43
14.6% $ 13.70

No
No
No

Yes
Yes
No

345,200

44,500

14.8% $ 20.45

No

Yes

38,048
195,152
209,900

11,860
35,840
19,200

45.3% $ 14.75
22.5% $ 14.09
10.1% -

No
No
-

No
No
-

81,500

7,900

10.7% $

11.21

No

No

302,900
2,153,200

22,700
208,000

8.1% $ 18.33
10.7% $ 13.65

No
No

Yes
No

Note: Maricopa County hourly wages by industry data was used as a substitute for the same category of data in the urban areas of Arizona.

DATA SOURCE: Arizona Department of Housing and Arizona Department of Economic Security.

11

APPENDICES

GENERAL TRENDS IN ARIZONA’S HOUSING MARKET

TABLE 2
Employment Growth and Housing Affordability by Industry
ARIZONA

Industry
Natural Resources and Mining
Construction
Manufacturing
Wholesale Trade
Retail Trade (Retail store workers)
Transportation, Warehousing and Utilities
Information (Publishing, motion pictures and videos, radio and
TV stations and telecommunications)
Finance and Insurance
Real Estate Rental and Leasing
Professional and Business Services (Legal services,
management services, computers services, accounting services,
engineering services, payroll services)
Educational Services (Businesses that provide educational
services to schools, colleges and universities plus specialized
schools such as computer training, language schools, flight
training, cosmetology)
Health Care and Social Assistance
Leisure and Hospitality
Other Services (Auto repair shops, barber shops, other repair
shops)
Government - Federal, State and Local (All government
employees including teachers, police)
Total Employment

Employment Employment
Change
Change
2001-2005 2001-2005
Numbers
Percent

According to data from the Federal Housing Finance Board, home prices in
Arizona have been steadily on the rise.

Median Can Afford
Hourly To Buy a
Wages
Median
Statewide Priced
2005
House
$ 18.75
No
$ 15.01
No
$ 16.54
No
$ 15.56
No
$ 10.55
No
$ 16.93
No

From 2000 to 2006, the median sales price of homes in Arizona
increased by 74%.
Can Afford
To Rent a
2- BDRM
Apartment
Yes
Yes
Yes
Yes
No
Yes

During the same period, median family income increased by only 15%.

Employment
2001

Employment
2005

9,600
173,600
201,700
95,900
268,100
76,600

8,800
218,300
181,300
99,400
306,500
80,800

(800)
44,700
(20,400)
3,500
38,400
4,200

53,900
109,300
44,100

45,100
124,700
49,000

(8,800)
15,400
4,900

-16.3% $
14.1% $
11.1% $

17.89
16.15
13.29

No
No
No

Yes
Yes
Yes

$250,000

319,900

369,000

49,100

15.3% $

19.93

No

Yes

$200,000

-8.3%
25.7%
-10.1%
3.6%
14.3%
5.5%

28,300
191,600
230,000

40,600
233,700
253,800

12,300
42,100
23,800

43.5% $
22.0% $
10.3% $

14.80
13.68
-

No
No
No

Yes
Yes
-

84,700

92,600

7,900

9.3% $

11.13

No

No

377,800
2,265,100

403,300
2,506,900

25,500
241,800

6.7% $
10.7% $

16.93
13.31

No
No

Yes
Yes

Arizona Home Prices and Income

$300,000

$232,000 $244,000

$143,900 $146,000
$150,000 $140,600
$100,000
$50,000

$47,800 $49,700

$156,500

$169,000

$51,900

$52,700

$53,300

$53,300

2002

2003

2004

2005

$54,900

$0

2000

2001

2006

Median Home Price
Median Family Income

10

DATA SOURCE: Arizona Department of Housing and Arizona Department of Economic Security.

DATA SOURCE: Arizona Department of Housing, Federal Housing Finance Board and U.S. Department of Housing
and Urban Development.

3

GENERAL TRENDS IN ARIZONA’S HOUSING MARKET

APPENDICES

HOW DOES ARIZONA’S HOUSING PRICE APPRECIATION
COMPARE WITH OTHER STATES?

TABLE 1
Housing Affordability for Homebuyers and Renters for Common
Occupations in Selected Arizona Communities

City/Town

Based on the House Price Index (HPI) prepared by the Office of Federal Housing
Enterprise Oversight (OFHEO), housing price appreciation in Arizona was the
highest nationally for the first quarter of 2005 to the first quarter of 2006:
STATE

Arizona
Florida
Hawaii
Oregon
District of Columbia
Maryland
Idaho
New Mexico
Utah
Colorado
U.S. Average

ANNUAL PRICE INCREASE

RANKING

32.81%
26.62%
24.99%
20.96%
20.84%
20.46%
20.30%
15.88%
14.68%
5.10%
12.54%

1
2
3
4
5
6
7
12
15
45
-

Bullhead City
Casa Grande
Coolidge
Douglas
Eloy
Flagstaff
Florence
Globe
Holbrook
Kingman
Lake Havasu City
Nogales
Parker
Payson

County

Mohave
Pinal
Pinal
Cochise
Pinal
Coconino
Pinal
Gila
Navajo
Mohave
Mohave
Santa Cruz
La Paz
Gila
Phoenix Metro- Resale Maricopa
Phoenix Metro - New Maricopa
Pinetop-Lakeside
Navajo
Prescott
Yavapai
Safford
Graham
San Luis
Yuma
Yavapai /
Coconino
Sedona
Show Low
Navajo
Sierra Vista
Cochise
Springerville
Apache
Tucson*
Pima
Winslow
Navajo
Yuma
Yuma
Arizona
-

Hourly
Wage
Median Home Needed to
Price*
Buy
$
180,260 $ 26.15
$
175,000 $ 25.38
$
114,000 $ 16.54
$
76,500 $ 11.10
$
119,900 $ 17.38
$
395,000 $ 57.31
$
195,950 $ 28.44
$
126,400 $ 18.35
$
140,750 $ 20.42
$
170,350 $ 24.71
$
269,950 $ 39.17
$
172,000 $ 24.96
$
245,000 $ 35.56
$
242,250 $ 35.15
$
264,900 $ 38.44
$
268,232 $ 38.92
$
297,000 $ 43.10
$
340,000 $ 49.35
$
99,545 $ 14.44
$
163,000 $ 23.65

2 BDRM
Aptmnt
Monthly
Rent**
$
653
$
770
$
770
$
596
$
770
$
907
$
770
$
689
$
589
$
653
$
653
$
623
$
572
$
689
$
770
$
770
$
589
$
719
$
562
$
672

Hourly
Wage
Needed to
Rent
$ 12.56
$ 14.81
$ 14.81
$ 11.46
$ 14.81
$ 17.44
$ 14.81
$ 13.25
$ 11.33
$ 12.56
$ 12.56
$ 11.98
$ 11.00
$ 13.25
$ 14.81
$ 14.81
$ 11.33
$ 13.83
$ 10.81
$ 12.92

$
$
$
$
$
$
$
$

$
$
$
$
$
$
$
$

$
$
$
$
$
$
$
$

513,000
150,000
165,000
135,000
211,502
129,000
224,900
244,000

$
$
$
$
$
$
$
$

74.44
21.77
23.94
19.60
30.69
18.02
32.63
35.40

719
589
596
504
746
589
672
674

HOURLY WAGES
Police
Teacher
Officer
19.92
15.16
21.08
18.75
21.08
18.75
22.75
15.49
21.08
18.75
19.96
16.73
21.08
18.75
19.89
17.13
17.12
17.28
19.92
15.16
19.92
15.16
23.38
15.81
21.88
15.04
19.89
17.13
23.81
15.04
23.81
15.04
17.12
17.28
19.31
15.81
16.22
16.20
19.92
17.87

13.83
11.33
11.46
9.69
14.35
11.33
12.92
12.96

19.31
17.12
22.75
15.28
23.11
17.12
19.92
23.05

15.81
17.28
15.49
18.20
18.87
17.28
17.87
15.78

Retail
Worker
9.99
8.76
8.76
7.79
8.76
8.41
8.76
9.40
9.21
9.99
9.99
7.85
11.33
9.40
10.04
10.04
9.21
9.60
8.93
8.88
9.60
9.21
7.79
6.64
9.72
9.21
8.88
9.80

Nurse
17.74
19.36
19.36
16.39
19.36
16.39
19.36
16.86
17.84
17.74
17.74
16.64
17.74
16.86
19.27
19.27
17.84
17.33
16.39
16.64
17.33
17.84
16.39
18.07
18.37
17.84
16.64
18.92

Firefighter Waitperson Total of All
Occupations
14.78
6.48
11.68
10.90
6.42
12.47
10.90
6.42
12.47
14.27
6.08
12.69
10.90
6.42
12.47
13.00
6.47
11.98
10.90
6.42
12.47
14.41
6.29
12.70
14.78
6.64
12.55
14.78
6.48
11.68
14.78
6.48
11.68
14.78
6.18
10.27
14.41
7.66
10.05
14.41
6.29
12.70
22.86
6.49
13.65
22.86
6.49
13.65
14.78
6.64
12.55
11.04
6.59
12.07
14.41
6.49
11.16
14.78
6.24
10.64
11.04
14.78
14.27
14.27
18.38
14.78
14.78
15.25

6.59
6.64
6.08
6.23
6.16
6.64
6.24
6.42

12.07
12.55
12.69
11.99
13.24
12.55
10.64
13.31

Affordability Calculation Assumptions: 30% of income is allocated to housing. For buying a house additional assumptions included 5% down payment,
6.5% interest rate at 30-years fixed, plus allocation of 21% of the monthly payments to property taxes, insurance and other costs such as PMI.
* Most home prices are median, but a few are average prices. Most prices are for April 2006.
** Apartment Rents - HUD's 2006 Fair Market Rents. Rents shown are for 2-bedroom unit.

Can afford to buy or rent.
Can afford to only rent.
DATA SOURCE: Arizona Department of Housing, Arizona Department of
Economic Security, U.S. Department of Housing and Urban Development,
Arizona Real Estate Research Center at ASU, various local real estate
associations, and local governments.

4

DATA SOURCE: Office of Federal Housing Enterprise Oversight (OFHEO)

Cannot afford to buy or rent.

9

RURAL AND URBAN GROWTH: 2001-2005

GENERAL TRENDS IN ARIZONA’S HOUSING MARKET

EMPLOYMENT and POPULATION GROWTH
2001-2005

MEDIAN HOME PRICES
2006

Most of the economic growth in Arizona, in terms of employment and population, occurred
in the urban areas from 2001-2005.
Statewide employment increased by 241,800 jobs during that period. Of the total increase,
208,000 jobs (86%) were attributed to employment growth in the urban areas. The remaining 33,800
jobs (14%) went to the rural areas. One out of every three additions to total employment statewide
occurred in the low wage industries. Workers in these industries, on average, do not make enough money
to buy a median price house or rent an apartment as a single income earner. Examples of such industries
include retail trade, leisure and hospitality, real estate rental and leasing, and other services (i.e., repair
shops, barber shops). Further details are presented in Tables 2, 3 and 4, at the end of the report.
Population in the state increased by 725,090 persons during the 2001-2005 period. More than two-thirds
(75% or 543,445 persons) became residents of urban areas, either in Maricopa County or Pima County.
The remaining 25 percent (181,645 persons) chose to live in one of the 13 rural counties of Arizona.
The following charts illustrate that the share of employment growth in rural counties (14%) has been
smaller than their share of population growth (25%). It is very likely that limited employment opportunities
in the rural counties are a contributing factor to this variation.

Median home prices in Arizona communities range from $76,500 in Douglas to
$513,000 in the Sedona area. In general, home prices are much higher in communities that
attract tourists, those with a relatively higher percentage of seasonal, recreational, or
occasional use homes, and in urban areas.
HIGH-PRICE AREAS
Median Home Price - 2006
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0

Se

14%
or 33,800 additional
jobs

25%
or 181,645 additional
people
75%
or 543,445 additional
people

Population Growth

Rural
Urban

86%
or 208,000 additional
jobs

Employment Growth

tt

co

s
Pre

ide

es

k
-La

tro
ity
Me
uC
x
i
n
oe
Ph

s
va

Ha

p

eto

Pin

$180,000
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0

las

ug

DATA SOURCE: Arizona Department of Housing and Arizona Department of Economic Security

ff

sta

g
Fla

r

rke

Pa

n

ma

yso

Pa

n

cso

Yu

Tu

LOW-PRICE AREAS
Median Home Price - 2006

Do

8

rea

aA

n
do

rd

ffo

Sa

ge

lid

o
Co

y

Elo

e

low

ob

Gl

W

ins

ille

erv

g
rin

Sp

DATA SOURCE: Arizona Department of Housing and Arizona Association of REALTORS®

k

w

roo

lb
Ho

S

w
ho

Lo

n
Sa

is

Lu

5

WORKFORCE HOUSING AFFORDABILITY

WORKFORCE HOUSING AFFORDABILITY

POLICE OFFICERS, TEACHERS,
NURSES AND FIREFIGHTERS

RENTING A TWO BEDROOM
APARTMENT IN SELECTED COUNTIES

The following table shows the ability of a police officer to own a median price home
which is affordable in selected communities. Similar details for other occupations
such as firefighter, teacher, nurse, retail worker, and waiter/waitress are presented in
Table 1 in the Appendices.
•
•

One Income Earner per Household: A police officer would not be able to afford
buying a house in any of the following communities in Arizona, assuming he/she
is the only income earner in the household.
Two Income Earners per Household: A police officer, with the financial help of
another income earner in the household, would be able to afford buying a house
in seven out of the 11 following communities.
One Income Earner Per Household

Selected Areas
Sedona
Flagstaff
Phoenix
(Maricopa County)
Pinetop-Lakeside
Tucson
(Pima County)
Payson
Sierra Vista
Kingman
Yuma
Nogales
State Average

Hourly Wage Hourly Median
Needed to
Wage of a
Buy a Median Police Officer
Price House

Affordability Status

Despite the emphasis on homeownership, renter households comprise almost
one-third (32%) of the total occupied homes according to Census 2000.
The following graph shows the amount a household must earn to afford a two bedroom
rental unit at the Fair Market Rent, based on the generally accepted affordability
standard of paying no more than 30% of one’s income for housing costs.
The median hourly wage used in this analysis is that of retail sales and restaurant
workers in the corresponding county. Similar details for other selected occupations are
presented in Table 1 in the Appendices.
Hourly Wage Needed to Rent
Median Hourly Wage Paid

Two Income Earners Per Household
Hourly Wage of
a Police Officer
and Another
Income Earner*

Affordability Status

Coconino

$74.44
$57.31
$38.44

$19.31
$19.96
$23.81

Not Affordable
Not Affordable
Not Affordable

$32.83
$33.93
$40.48

Not Affordable
Not Affordable
Affordable

$43.10
$30.69

$17.12
$23.11

Not Affordable
Not Affordable

$29.10
$39.29

Not Affordable
Affordable

$35.15
$23.94
$24.71
$32.63
$24.96
$35.40

$19.89
$22.75
$19.92
$19.92
$23.38
$23.05

Not Affordable
Not Affordable
Not Affordable
Not Affordable
Not Affordable
Not Affordable

$33.81
$38.68
$33.86
$33.86
$39.75
$39.19

Not Affordable
Affordable
Affordable
Affordable
Affordable
Affordable

* Assuming that the hourly income of the second income earner in the household is 70% of the police officer’s income.

Maricopa
Pinal

14.81

8.76

Yavapai

9.60

Pima

9.72

Mohave

9.99

13.38
14.35
12.56
13.25

Gila

9.40

Yuma

8.88

La Paz
Cochise

12.92
11.00
11.33

7.79

$0
DATA SOURCE: Arizona Department of Housing and Arizona Department of Economic Security

14.81

10.04

State Average

6

17.44

8.41

9.80

$4

$8

11.46
12.96

$12
Hourly Wage

$16

DATA SOURCE: Arizona Department of Housing and Arizona Department of Economic Security

$20

7

WORKFORCE HOUSING AFFORDABILITY

WORKFORCE HOUSING AFFORDABILITY

POLICE OFFICERS, TEACHERS,
NURSES AND FIREFIGHTERS

RENTING A TWO BEDROOM
APARTMENT IN SELECTED COUNTIES

The following table shows the ability of a police officer to own a median price home
which is affordable in selected communities. Similar details for other occupations
such as firefighter, teacher, nurse, retail worker, and waiter/waitress are presented in
Table 1 in the Appendices.
•
•

One Income Earner per Household: A police officer would not be able to afford
buying a house in any of the following communities in Arizona, assuming he/she
is the only income earner in the household.
Two Income Earners per Household: A police officer, with the financial help of
another income earner in the household, would be able to afford buying a house
in seven out of the 11 following communities.
One Income Earner Per Household

Selected Areas
Sedona
Flagstaff
Phoenix
(Maricopa County)
Pinetop-Lakeside
Tucson
(Pima County)
Payson
Sierra Vista
Kingman
Yuma
Nogales
State Average

Hourly Wage Hourly Median
Needed to
Wage of a
Buy a Median Police Officer
Price House

Affordability Status

Despite the emphasis on homeownership, renter households comprise almost
one-third (32%) of the total occupied homes according to Census 2000.
The following graph shows the amount a household must earn to afford a two bedroom
rental unit at the Fair Market Rent, based on the generally accepted affordability
standard of paying no more than 30% of one’s income for housing costs.
The median hourly wage used in this analysis is that of retail sales and restaurant
workers in the corresponding county. Similar details for other selected occupations are
presented in Table 1 in the Appendices.
Hourly Wage Needed to Rent
Median Hourly Wage Paid

Two Income Earners Per Household
Hourly Wage of
a Police Officer
and Another
Income Earner*

Affordability Status

Coconino

$74.44
$57.31
$38.44

$19.31
$19.96
$23.81

Not Affordable
Not Affordable
Not Affordable

$32.83
$33.93
$40.48

Not Affordable
Not Affordable
Affordable

$43.10
$30.69

$17.12
$23.11

Not Affordable
Not Affordable

$29.10
$39.29

Not Affordable
Affordable

$35.15
$23.94
$24.71
$32.63
$24.96
$35.40

$19.89
$22.75
$19.92
$19.92
$23.38
$23.05

Not Affordable
Not Affordable
Not Affordable
Not Affordable
Not Affordable
Not Affordable

$33.81
$38.68
$33.86
$33.86
$39.75
$39.19

Not Affordable
Affordable
Affordable
Affordable
Affordable
Affordable

* Assuming that the hourly income of the second income earner in the household is 70% of the police officer’s income.

Maricopa
Pinal

14.81

8.76

Yavapai

9.60

Pima

9.72

Mohave

9.99

13.38
14.35
12.56
13.25

Gila

9.40

Yuma

8.88

La Paz
Cochise

12.92
11.00
11.33

7.79

$0
DATA SOURCE: Arizona Department of Housing and Arizona Department of Economic Security

14.81

10.04

State Average

6

17.44

8.41

9.80

$4

$8

11.46
12.96

$12
Hourly Wage

$16

DATA SOURCE: Arizona Department of Housing and Arizona Department of Economic Security

$20

7

RURAL AND URBAN GROWTH: 2001-2005

GENERAL TRENDS IN ARIZONA’S HOUSING MARKET

EMPLOYMENT and POPULATION GROWTH
2001-2005

MEDIAN HOME PRICES
2006

Most of the economic growth in Arizona, in terms of employment and population, occurred
in the urban areas from 2001-2005.
Statewide employment increased by 241,800 jobs during that period. Of the total increase,
208,000 jobs (86%) were attributed to employment growth in the urban areas. The remaining 33,800
jobs (14%) went to the rural areas. One out of every three additions to total employment statewide
occurred in the low wage industries. Workers in these industries, on average, do not make enough money
to buy a median price house or rent an apartment as a single income earner. Examples of such industries
include retail trade, leisure and hospitality, real estate rental and leasing, and other services (i.e., repair
shops, barber shops). Further details are presented in Tables 2, 3 and 4, at the end of the report.
Population in the state increased by 725,090 persons during the 2001-2005 period. More than two-thirds
(75% or 543,445 persons) became residents of urban areas, either in Maricopa County or Pima County.
The remaining 25 percent (181,645 persons) chose to live in one of the 13 rural counties of Arizona.
The following charts illustrate that the share of employment growth in rural counties (14%) has been
smaller than their share of population growth (25%). It is very likely that limited employment opportunities
in the rural counties are a contributing factor to this variation.

Median home prices in Arizona communities range from $76,500 in Douglas to
$513,000 in the Sedona area. In general, home prices are much higher in communities that
attract tourists, those with a relatively higher percentage of seasonal, recreational, or
occasional use homes, and in urban areas.
HIGH-PRICE AREAS
Median Home Price - 2006
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0

Se

14%
or 33,800 additional
jobs

25%
or 181,645 additional
people
75%
or 543,445 additional
people

Population Growth

Rural
Urban

86%
or 208,000 additional
jobs

Employment Growth

tt

co

s
Pre

ide

es

k
-La

tro
ity
Me
uC
x
i
n
oe
Ph

s
va

Ha

p

eto

Pin

$180,000
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0

las

ug

DATA SOURCE: Arizona Department of Housing and Arizona Department of Economic Security

ff

sta

g
Fla

r

rke

Pa

n

ma

yso

Pa

n

cso

Yu

Tu

LOW-PRICE AREAS
Median Home Price - 2006

Do

8

rea

aA

n
do

rd

ffo

Sa

ge

lid

o
Co

y

Elo

e

low

ob

Gl

W

ins

ille

erv

g
rin

Sp

DATA SOURCE: Arizona Department of Housing and Arizona Association of REALTORS®

k

w

roo

lb
Ho

S

w
ho

Lo

n
Sa

is

Lu

5

GENERAL TRENDS IN ARIZONA’S HOUSING MARKET

APPENDICES

HOW DOES ARIZONA’S HOUSING PRICE APPRECIATION
COMPARE WITH OTHER STATES?

TABLE 1
Housing Affordability for Homebuyers and Renters for Common
Occupations in Selected Arizona Communities

City/Town

Based on the House Price Index (HPI) prepared by the Office of Federal Housing
Enterprise Oversight (OFHEO), housing price appreciation in Arizona was the
highest nationally for the first quarter of 2005 to the first quarter of 2006:
STATE

Arizona
Florida
Hawaii
Oregon
District of Columbia
Maryland
Idaho
New Mexico
Utah
Colorado
U.S. Average

ANNUAL PRICE INCREASE

RANKING

32.81%
26.62%
24.99%
20.96%
20.84%
20.46%
20.30%
15.88%
14.68%
5.10%
12.54%

1
2
3
4
5
6
7
12
15
45
-

Bullhead City
Casa Grande
Coolidge
Douglas
Eloy
Flagstaff
Florence
Globe
Holbrook
Kingman
Lake Havasu City
Nogales
Parker
Payson

County

Mohave
Pinal
Pinal
Cochise
Pinal
Coconino
Pinal
Gila
Navajo
Mohave
Mohave
Santa Cruz
La Paz
Gila
Phoenix Metro- Resale Maricopa
Phoenix Metro - New Maricopa
Pinetop-Lakeside
Navajo
Prescott
Yavapai
Safford
Graham
San Luis
Yuma
Yavapai /
Coconino
Sedona
Show Low
Navajo
Sierra Vista
Cochise
Springerville
Apache
Tucson*
Pima
Winslow
Navajo
Yuma
Yuma
Arizona
-

Hourly
Wage
Median Home Needed to
Price*
Buy
$
180,260 $ 26.15
$
175,000 $ 25.38
$
114,000 $ 16.54
$
76,500 $ 11.10
$
119,900 $ 17.38
$
395,000 $ 57.31
$
195,950 $ 28.44
$
126,400 $ 18.35
$
140,750 $ 20.42
$
170,350 $ 24.71
$
269,950 $ 39.17
$
172,000 $ 24.96
$
245,000 $ 35.56
$
242,250 $ 35.15
$
264,900 $ 38.44
$
268,232 $ 38.92
$
297,000 $ 43.10
$
340,000 $ 49.35
$
99,545 $ 14.44
$
163,000 $ 23.65

2 BDRM
Aptmnt
Monthly
Rent**
$
653
$
770
$
770
$
596
$
770
$
907
$
770
$
689
$
589
$
653
$
653
$
623
$
572
$
689
$
770
$
770
$
589
$
719
$
562
$
672

Hourly
Wage
Needed to
Rent
$ 12.56
$ 14.81
$ 14.81
$ 11.46
$ 14.81
$ 17.44
$ 14.81
$ 13.25
$ 11.33
$ 12.56
$ 12.56
$ 11.98
$ 11.00
$ 13.25
$ 14.81
$ 14.81
$ 11.33
$ 13.83
$ 10.81
$ 12.92

$
$
$
$
$
$
$
$

$
$
$
$
$
$
$
$

$
$
$
$
$
$
$
$

513,000
150,000
165,000
135,000
211,502
129,000
224,900
244,000

$
$
$
$
$
$
$
$

74.44
21.77
23.94
19.60
30.69
18.02
32.63
35.40

719
589
596
504
746
589
672
674

HOURLY WAGES
Police
Teacher
Officer
19.92
15.16
21.08
18.75
21.08
18.75
22.75
15.49
21.08
18.75
19.96
16.73
21.08
18.75
19.89
17.13
17.12
17.28
19.92
15.16
19.92
15.16
23.38
15.81
21.88
15.04
19.89
17.13
23.81
15.04
23.81
15.04
17.12
17.28
19.31
15.81
16.22
16.20
19.92
17.87

13.83
11.33
11.46
9.69
14.35
11.33
12.92
12.96

19.31
17.12
22.75
15.28
23.11
17.12
19.92
23.05

15.81
17.28
15.49
18.20
18.87
17.28
17.87
15.78

Retail
Worker
9.99
8.76
8.76
7.79
8.76
8.41
8.76
9.40
9.21
9.99
9.99
7.85
11.33
9.40
10.04
10.04
9.21
9.60
8.93
8.88
9.60
9.21
7.79
6.64
9.72
9.21
8.88
9.80

Nurse
17.74
19.36
19.36
16.39
19.36
16.39
19.36
16.86
17.84
17.74
17.74
16.64
17.74
16.86
19.27
19.27
17.84
17.33
16.39
16.64
17.33
17.84
16.39
18.07
18.37
17.84
16.64
18.92

Firefighter Waitperson Total of All
Occupations
14.78
6.48
11.68
10.90
6.42
12.47
10.90
6.42
12.47
14.27
6.08
12.69
10.90
6.42
12.47
13.00
6.47
11.98
10.90
6.42
12.47
14.41
6.29
12.70
14.78
6.64
12.55
14.78
6.48
11.68
14.78
6.48
11.68
14.78
6.18
10.27
14.41
7.66
10.05
14.41
6.29
12.70
22.86
6.49
13.65
22.86
6.49
13.65
14.78
6.64
12.55
11.04
6.59
12.07
14.41
6.49
11.16
14.78
6.24
10.64
11.04
14.78
14.27
14.27
18.38
14.78
14.78
15.25

6.59
6.64
6.08
6.23
6.16
6.64
6.24
6.42

12.07
12.55
12.69
11.99
13.24
12.55
10.64
13.31

Affordability Calculation Assumptions: 30% of income is allocated to housing. For buying a house additional assumptions included 5% down payment,
6.5% interest rate at 30-years fixed, plus allocation of 21% of the monthly payments to property taxes, insurance and other costs such as PMI.
* Most home prices are median, but a few are average prices. Most prices are for April 2006.
** Apartment Rents - HUD's 2006 Fair Market Rents. Rents shown are for 2-bedroom unit.

Can afford to buy or rent.
Can afford to only rent.
DATA SOURCE: Arizona Department of Housing, Arizona Department of
Economic Security, U.S. Department of Housing and Urban Development,
Arizona Real Estate Research Center at ASU, various local real estate
associations, and local governments.

4

DATA SOURCE: Office of Federal Housing Enterprise Oversight (OFHEO)

Cannot afford to buy or rent.

9

APPENDICES

GENERAL TRENDS IN ARIZONA’S HOUSING MARKET

TABLE 2
Employment Growth and Housing Affordability by Industry
ARIZONA

Industry
Natural Resources and Mining
Construction
Manufacturing
Wholesale Trade
Retail Trade (Retail store workers)
Transportation, Warehousing and Utilities
Information (Publishing, motion pictures and videos, radio and
TV stations and telecommunications)
Finance and Insurance
Real Estate Rental and Leasing
Professional and Business Services (Legal services,
management services, computers services, accounting services,
engineering services, payroll services)
Educational Services (Businesses that provide educational
services to schools, colleges and universities plus specialized
schools such as computer training, language schools, flight
training, cosmetology)
Health Care and Social Assistance
Leisure and Hospitality
Other Services (Auto repair shops, barber shops, other repair
shops)
Government - Federal, State and Local (All government
employees including teachers, police)
Total Employment

Employment Employment
Change
Change
2001-2005 2001-2005
Numbers
Percent

According to data from the Federal Housing Finance Board, home prices in
Arizona have been steadily on the rise.

Median Can Afford
Hourly To Buy a
Wages
Median
Statewide Priced
2005
House
$ 18.75
No
$ 15.01
No
$ 16.54
No
$ 15.56
No
$ 10.55
No
$ 16.93
No

From 2000 to 2006, the median sales price of homes in Arizona
increased by 74%.
Can Afford
To Rent a
2- BDRM
Apartment
Yes
Yes
Yes
Yes
No
Yes

During the same period, median family income increased by only 15%.

Employment
2001

Employment
2005

9,600
173,600
201,700
95,900
268,100
76,600

8,800
218,300
181,300
99,400
306,500
80,800

(800)
44,700
(20,400)
3,500
38,400
4,200

53,900
109,300
44,100

45,100
124,700
49,000

(8,800)
15,400
4,900

-16.3% $
14.1% $
11.1% $

17.89
16.15
13.29

No
No
No

Yes
Yes
Yes

$250,000

319,900

369,000

49,100

15.3% $

19.93

No

Yes

$200,000

-8.3%
25.7%
-10.1%
3.6%
14.3%
5.5%

28,300
191,600
230,000

40,600
233,700
253,800

12,300
42,100
23,800

43.5% $
22.0% $
10.3% $

14.80
13.68
-

No
No
No

Yes
Yes
-

84,700

92,600

7,900

9.3% $

11.13

No

No

377,800
2,265,100

403,300
2,506,900

25,500
241,800

6.7% $
10.7% $

16.93
13.31

No
No

Yes
Yes

Arizona Home Prices and Income

$300,000

$232,000 $244,000

$143,900 $146,000
$150,000 $140,600
$100,000
$50,000

$47,800 $49,700

$156,500

$169,000

$51,900

$52,700

$53,300

$53,300

2002

2003

2004

2005

$54,900

$0

2000

2001

2006

Median Home Price
Median Family Income

10

DATA SOURCE: Arizona Department of Housing and Arizona Department of Economic Security.

DATA SOURCE: Arizona Department of Housing, Federal Housing Finance Board and U.S. Department of Housing
and Urban Development.

3

GENERAL TRENDS IN ARIZONA’S HOUSING MARKET

APPENDICES

HOME PRICES vs.
MEDIAN INCOME

TABLE 3
Employment Growth And Housing Affordability by Industry
URBAN ARIZONA

Home prices in Arizona have been increasing faster than income:
The 1990 - 2000 Period (also see Table 5 in the Appendices)
— In 11 out of 15 Arizona counties, home values appreciation rates were higher
than increases in household’s income.
— Statewide, housing values increased by 52.2% compared to a 47.5% increase in income.
— The greatest variations between home values and household income appreciation rates
were reported in Gila (23.3%), Coconino (26.0%) and Apache Counties (85.6%).
The 2000 - 2004 Period (also see Table 5 in the Appendices)
— During this period, home values in Maricopa County increased by
25.7%, as compared to only a 4.1% increase in median household income.
— In Pima County housing values increased by 21.6% compared to a 5.6% increase in income.
— Statewide housing values increased by 20.1% while income increased by less than 3.5%.
— Even though estimates for the period from 2004-2006 are not available from the census
sources, data from other sources reveal that housing price appreciation rates have been
much higher than increases in the household median income.

2

Industry

Urban
Employment
2001

Natural Resources and Mining
4,200
Construction
151,000
Manufacturing
186,200
Wholesale Trade
88,800
Retail Trade (Retail store workers)
193,600
Transportation, Warehousing and Utilities
67,800
Information (Publishing, motion pictures and videos, radio and TV
stations and telecommunications)
49,300
Finance and Insurance
107,900
Real Estate Rental and Leasing
36,200
Professional and Business Services (Legal services, management
services, computers services, accounting services, engineering
services, payroll services)
300,700
Educational Services (Businesses that provide educational
services to schools, colleges and universities plus specialized
schools such as computer training, language schools, flight training,
cosmetology)
26,188
Health Care and Social Assistance
159,312
Leisure and Hospitality
190,700
Other Services (Auto repair shops, barber shops, other repair
shops)
73,600
Government - Federal, State and Local (All government employees
including teachers, police)
280,200
Total Employment
1,945,200

Median
Urban Hourly Wages
Urban
Employment Employment Maricopa
Can Afford
Change
Urban
Change
County
To Buy a
2001-2005 (for Urban
Employment
2001-2005
Median2005
Numbers
Percent
Arizona) Priced House

$
$
$
$
$
$

Can Afford
To Rent a
2-BDRM
Apartment

3,500
189,600
163,700
91,600
225,700
71,100

(700)
38,600
(22,500)
2,800
32,100
3,300

-16.7%
25.6%
-12.1%
3.2%
16.6%
4.9%

17.32
15.41
16.40
15.93
10.84
17.02

No
No
No
No
No
No

Yes
Yes
Yes
Yes
No
Yes

40,400
121,500
41,500

(8,900)
13,600
5,300

-18.1% $ 18.27
12.6% $ 16.43
14.6% $ 13.70

No
No
No

Yes
Yes
No

345,200

44,500

14.8% $ 20.45

No

Yes

38,048
195,152
209,900

11,860
35,840
19,200

45.3% $ 14.75
22.5% $ 14.09
10.1% -

No
No
-

No
No
-

81,500

7,900

10.7% $

11.21

No

No

302,900
2,153,200

22,700
208,000

8.1% $ 18.33
10.7% $ 13.65

No
No

Yes
No

Note: Maricopa County hourly wages by industry data was used as a substitute for the same category of data in the urban areas of Arizona.

DATA SOURCE: Arizona Department of Housing and Arizona Department of Economic Security.

11

ARIZONA’S HOUSING MARKET

APPENDICES

...a glance

TABLE 4
Employment Growth and Housing Affordability by Industry
RURAL ARIZONA

Industry

Median
Rural
Hourly Wages
Rural
Employment Employment Mohave
Can Afford
Rural
Rural
Change
County (for
To Buy a
Change
2001-2005
Employment Employment 2001-2005
Rural
MedianPercent
2001
2005
Numbers
Arizona) Priced House

Natural Resources and Mining
5,400
Construction
22,600
Manufacturing
15,500
Wholesale Trade
7,100
Retail Trade (Retail store workers)
74,500
Transportation, Warehousing and Utilities
8,800
Information (Publishing, motion pictures and videos, radio and TV
stations and telecommunications)
4,600
Finance and Insurance
1,400
Real Estate Rental and Leasing
7,900
Professional and Business Services (Legal services, management
services, computers services, accounting services, engineering
services, payroll services)
19,200
Educational Services (Businesses that provide educational
services to schools, colleges and universities plus specialized
schools such as computer training, language schools, flight training,
cosmetology)
2,112
Health Care and Social Assistance
32,288
Leisure and Hospitality
39,300
Other Services (Auto repair shops, barber shops, other repair
shops)
11,100
Government - Federal, State and Local (All government employees
including teachers, police)
97,600
Total Employment
319,900

5,300
28,700
17,600
7,800
80,800
9,700

(100)
6,100
2,100
700
6,300
900

4,700
3,200
7,500

-1.9%
27.0%
13.5%
9.9%
8.5%
10.2%

$
$
$
$
$
$

Can Afford
To Rent a
2-BDRM
Apartment

19.79
13.57
12.02
13.88
9.79
14.37

No
No
No
No
No
No

Yes
Yes
No
Yes
No
Yes

100
1,800
(400)

2.2% $ 13.11
128.6% $ 12.46
-5.1% $ 13.03

No
No
No

Yes
No
Yes

23,800

4,600

24.0% $ 15.34

No

Yes

2,552
38,548
43,900

440
6,260
4,600

20.8% $ 13.47
19.4% $ 12.97
11.7% $
-

No
No
No

Yes
Yes
-

11,100

-

0.0% $ 10.52

No

No

100,400
353,700

2,800
33,800

2.9% $ 15.82
10.6% $ 11.68

No
No

Yes
No

Low mortgage rates, and strong population growth, have been two of the major contributing
factors to the strong housing market in Arizona during the last few years. Housing price
appreciation in Arizona was the highest nationally from the first quarter of 2005 to the first quarter
of 20061. However, in the second quarter of 2006, there have been reports of weakening in the
housing market.
According to the Real Estate Center at Arizona State University, while home sale activity is down
from last year, the lack of affordable housing is still affecting buyers. The median price for a home
continues to rise (albeit at a slower rate) and mortgage interest rates are up from 5.3 percent in
June 2005 to 6.3 percent in 2006. Median housing prices have been increasing at a much faster rate
than median household income (county and state level data are presented in Table 5).
The analysis and tables in this document are based on the most recent employment and housing
information available from 2005 and early 2006 data. For purpose of discussion, the analysis of
affordability is based on the median home price or market rent for the area. Median price refers to
the middle of the price range. We choose to compare communities across the state based on the
median price for equitable comparison and consistency.
Finding affordable housing for working households will become increasingly challenging should
home prices and mortgage rates continue to rise throughout Arizona.
–– From 2000 to 2006, the median sales price of homes in Arizona increased by 74%, but during the
same period, median family income only increased by 15%.

Note: Mohave County hourly wages by industry data was used as a substitute for the same category of data in the rural areas of Arizona.

–– Median home prices in Arizona communities range from $76,500 in Douglas to $513,000 in the
Sedona area. In general, home prices are much higher in communities that attract tourists,
those with a higher percentage of seasonal, recreational, or occasional use homes and in urban
areas.

12

DATA SOURCE: Arizona Department of Housing and Arizona Department of Economic Security.

1

Based on the House Price Index (HPI) prepared by the Office of Federal Housing Enterprise Oversight (OFHEO)

1

APPENDICES
JANET NAPOLITANO
GOVERNOR

SHEILA D. HARRIS, PH.D.
DIRECTOR

TABLE 5
1990 and 2000 Median Home Value and
Household Income Data for Arizona Counties;
2004 Date for Arizona, Maricopa and Pima Counties
Dear Community Partner,
We are pleased to provide you with an update of the housing market in Arizona, as part of the
2006 Governor’s Housing Forum. This year, we are looking at “The Bigger Picture” – how
housing is the foundation for viable neighborhoods, cities and towns. The Forum this year will
Median Home Value

also address community involvement, housing development and quality design.
This report highlights difficulties that many working individuals and families have in finding
an affordable home in their community. As we plan for quality growth in Arizona, housing
which is affordable must be included in our planning. In order to have a productive community, everyone needs to have an affordable place to live.
Thank you for your assistance as we strive to provide housing that is affordable to the citizens
of Arizona.
Sincerely,

County Name
Apache
Cochise
Coconino
Gila
Graham
Greenlee
La Paz
Maricopa
Mohave
Navajo
Pima
Pinal
Santa Cruz
Yavapai
Yuma
State of Arizona

Median Household Income

Home Values Home Values
Increased
Increased
Faster Than Faster Than
Income*
Income*

%
%
%
%
%
%
Increase Increase
Increase
Increase Increase
Increase
199020001990
2000
2004
1990
2000
2004 1990-2000 2000-2004 1990 - 2000 2000 - 2004
2000
2004
$ 16,600 $ 41,700
151.2%
$ 14,100 $ 23,344
65.6%
85.6%
$ 59,700 $ 88,200
47.7%
$ 22,425 $ 32,105
43.2%
4.6%
$ 82,600 $ 142,500
72.5%
$ 26,112 $ 38,256
46.5%
26.0%
$ 58,600 $ 100,100
70.8%
$ 20,964 $ 30,917
47.5%
23.3%
$ 50,300 $ 80,900
60.8%
$ 18,455 $ 29,668
60.8%
0.1%
$ 40,700 $ 62,700
54.1%
$ 27,491 $ 39,384
43.3%
10.8%
$ 56,800 $ 86,500
52.3%
$ 16,555 $ 25,839
56.1%
-3.8%
$ 84,700 $ 129,200 $ 162,431
52.5%
25.7% $ 30,797 $ 45,358 $ 47,207
47.3%
4.1%
5.3%
21.6%
$ 74,900 $ 95,300
27.2%
$ 24,002 $ 31,521
31.3%
-4.1%
$ 51,500 $ 77,000
49.5%
$ 19,452 $ 28,569
46.9%
2.6%
$ 76,500 $ 114,600 $ 139,335
49.8%
21.6% $ 25,401 $ 36,758 $ 38,800
44.7%
5.6%
5.1%
16.0%
$ 53,400 $ 93,900
75.8%
$ 21,301 $ 35,856
68.3%
7.5%
$ 71,500 $ 94,700
32.4%
$ 22,066 $ 29,710
34.6%
-2.2%
$ 85,300 $ 138,000
61.8%
$ 22,060 $ 34,901
58.2%
3.6%
$ 63,700 $ 85,100
33.6%
$ 23,635 $ 32,182
36.2%
-2.6%
$ 79,700 $ 121,300 $ 145,741
52.2%
20.1% $ 27,540 $ 40,558 $ 41,995
47.3%
3.5%
4.9%
16.6%

* These numbers were derived by subtracting the percent increase in "median household income" from the percent increase in "median home values."
Note 1: The American Community Survey data was used for the 2004 home value estimates and median household income numbers. For Maricopa County, the
upper bound estimates were used, but for Pima County and Arizona the mid-point estimates were selected.
Note 2: The 2004 data from American Community Survey is in 2004 inflation-adjusted dollars.

Sheila D. Harris, Ph.D.
Director, Arizona Department of Housing

1700 WEST WASHINGTON • SUITE 210 • PHOENIX, AZ 85007 • 602-771-1000 • FAX 602-771-1002
TTY 602-771-1001 • WEBSITE www.housingaz.com
Home of the Arizona Housing Finance Authority

DATA SOURCE: Arizona Department of Housing and U.S. Census Bureau - 1990 and 2000 censuses, plus the
2004 American Community Survey.

13

2006 GOVERNOR’S HOUSING FORUM SPONSORS

2006
ARIZONA’S HOUSING MARKET

...a glance

SOURCES

Title II of the Americans with Disabilities Act prohibits discrimination
on the basis of disability in the programs of a public agency. Individuals
with disabilities who need the information contained in this publication
in an alternate format may contact the Arizona Department of Housing
at (602) 771-1000 or our TTY number (602) 771-1001 to make their
needs known. Requests should be made as soon as possible to allow
sufficient time to arrange for the accommodation.

1700 W. Washington, Suite 210
Phoenix, AZ 85007
(602) 771-1000
www.housingaz.com

The goal of the Arizona Department of Housing is to alleviate
many of the issues raised in this document through strategic
public investment and technical assistance. If you would like
additional information, please contact:
Dr. Sheila Harris, Director
Meggan Medina, Government Relations & Communications Administrator
(602) 771-1011 megganm@housingaz.com

8/2006

g

Arizona Department of Housing

“The Bigger Picture”
sin

Arizona Association of REALTORS®
Arizona Department of Economic Security
Arizona Department of Housing
Arizona Real Estate Research Center at ASU
Chambers of Commerce and Local Governments
Federal Housing Finance Board
Harvard University - Joint Center for Housing Studies
National Association of Homebuilders
National Association of REALTORS®
Office of Federal Housing Enterprise Oversight
U.S. Census Bureau
U.S. Department of Housing and Urban Development

GOVERNOR’S
HOUSING FORUM

hou

Arizona Association of REALTORS® • Industrial Development Authority of the City of Tucson
Valle Del Sol, Inc. • Enterprise Community Investment • Raymond James Tax Credit Funds, Inc.
U.S. Department of Housing and Urban Development

September 6-8, 2006
El Conquistador Resort

This report was prepared for distribution at the
Governor’s Housing Forum
September 6-8, 2006