2007

Arizona’s Housing Market
…a glance
This report was prepared for distribution at the

Radisson Fort McDowell Resort
September 11-13, 2007

Arizona Department of Housing

JANET NAPOLITANO							
SHEILA D. HARRIS, PhD
GOVERNOR 								
DIRECTOR

Dear Community Partner,
From 2001-2006, Arizona led much of the nation in population growth, economic expansion, and
home appreciation values. With approximately one million new residents, and over 400,000 new
job opportunities added to the state economy, Arizona remains a competitive choice for families
as well as new and expanding businesses.
Yet for one out of every three new jobs created, accompanying wages are too low for an
individual worker to rent an apartment or buy a home. The 2005 American Community Survey
data reveal that nearly 34 percent of homeowners and 45 percent of renters in Arizona spend
more than 30 percent of their income on housing.
“Leading With Solutions” is much more than a theme for an annual conference. It is also the focus
of an ongoing effort to ensure every Arizonan has an affordable home. As Director of the Arizona
Department of Housing, I welcome your support and energy toward accomplishing the goal of
having homes within reach for all families in Arizona.

Sincerely,

Sheila D. Harris, PhD
Director

1110 WEST WASHINGTON • SUITE 310 • 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

2007

Arizona’s Housing Market
…a glance

A growing inventory of unsold homes, reports of rising foreclosures, and a slowdown in new
construction are all symptoms of state and national trends signaling a downward cyclical
correction in the housing market. Following recent robust years in real estate, a cycle of
adjustments that began in the second quarter of 2006 could continue well into 2008.
In the throes of this market adjustment are thousands of Arizona families already struggling
to find homes within their financial reach. Housing is considered affordable if the cost does
not exceed 30 percent of monthly household gross income. The U.S. Census Bureau’s 2005
American Community Survey data reveal that in Arizona, almost half of all renters and close
to 34 percent of homeowners spend more than 30 percent of their incomes on housing.
Median home prices in Arizona communities range from a relatively low price of $88,900
in Douglas to a high price of $577,500 in the Sedona area. In general, home prices are
much higher in urban areas and in communities that attract large numbers of seasonal and
recreational tourists.
How well Arizona and the nation respond to market readjustments will be directly related
to how long current dynamics are sustained. Readjustment cycles typically prompt price
reductions on existing homes. If current falling home prices are sustained, less new home
construction and reductions in overall consumer spending could together lead to an
economic slowdown.
The analyses and tables in this document are based on data available for 2006 and early 2007
on housing, income, population, employment, and wages by occupation and by industry. To
enable equitable comparison and consistency in this report, we have compared communities
across the state on affordability reflected in the median home price or fair market rent in
each area. Median price refers to the middle of the price range.

1

2007

General Trends in
Arizona’s Housing Market
Home Prices vs Median Income
Home prices have been increasing faster than income: According to the data from
Federal Housing Finance Board, home prices in Arizona have been steadily on the rise.
• From year 2000 to 2006, the median sales price of homes in Arizona increased
by 85%.
• During the same period, median family income increased by only 15%.

$ 300,000

$260,000
$240,000

$ 250,000
$169,000

$ 200,000
$ 150,000

$140,600 $143,900

$ 100,000
$ 50,000
$0

$47,800

2000

$49,700

2001

$146,000

$51,900

2002

Median Home Price

$156,500

Median Family Income
$52,700

2003

$53,300

2004

$53,300

2005

$54,900

2006

Census data by Arizona county for 1990 - 2005 is available in Table 5 in the Appendices.

2

2007

General Trends in
Arizona’s Housing Market
Arizona Home Prices vs Other States
Based on the House Price Index (HPI) prepared by the Office of Federal Housing
Enterprise Oversight (OFHEO), housing price appreciation in Arizona was the 25th
highest nationally for the first quarter of 2006 to the first quarter of 2007. A year ago,
Arizona’s housing appreciation rate was ranked number one among all 50 states. This is
a clear indication of a significant slowdown in Arizona’s housing market.

STATE

ANNUAL PRICE INCREASE

RANKING

Utah

17.01%

1

Idaho

12.27%

2

Montana

11.68%

3

Wyoming

11.67%

4

Washington State

11.63%

5

New Mexico

11.21%

6

Oregon

10.77%

7

Texas

6.87%

16

Arizona

5.22%

25

Colorado

3.30%

43

California

1.19%

46

U.S. Average

4.25%

-

Data Source: Arizona Department of Housing, Federal Housing Finance Board, and U.S. Department of Housing, Urban Development.
Office of Federal Housing Enterprise Oversight (OFHEO), First Quarter, 2007.

3

2007

General Trends in
Arizona’s Housing Market
Median Home Prices - 2007
Median home prices in Arizona communities range from $88,900 in Douglas to nearly $600,000
in the Scottsdale and Sedona areas. 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 Housing Areas
$ 600,000
$ 500,000
$ 400,000
$ 300,000
$ 200,000
$ 100,000
$0

S

a
on

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Are

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Sh

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Fla

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Wi

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Pre

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Ph

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ull

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Cit

Low-Price Housing Areas
$ 180,000
$ 160,000
$ 140,000
$ 120,000
$ 100,000
$ 80,000
$ 60,000
$ 40,000
$ 20,000
$0
las

ug

Do

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ow

nsl

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Elo

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Co

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Data Source: Arizona Department of Housing, Local Realtors and Realty Studies at ASU Polytechnic.

k

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No

2007

Workforce Housing
Affordability
Police Officers, Teachers, Nurses and Firefighters
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, retail worker,
and waiter/waitress are presented in Table 1 in the Appendices.
• One Income Earner per Household: A police officer would be able to afford to buy a house in only
two out of 13 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 buy a house in nine out of the 13 following jurisdictions.
One Income Earner Per Household
Hourly Wage Needed to
Buy a Median Price House

Median Hourly Wage of a
Police Officer

Sedona

$84.50

Flagstaff

$54.14

Pinetop-lakeside

Two Income Earners Per Household

Affordability Status

Hourly Wage of a Police Officer
and Another Income Earner*

Affordability Status

$21.55

Not Affordable

$36.64

Not Affordable

$22.78

Not Affordable

$38.73

Not Affordable

$48.23

$17.30

Not Affordable

$29.41

Not Affordable

Payson

$43.90

$20.39

Not Affordable

$34.66

Not Affordable

Phoenix
(Maricopa County)

$38.42

$24.06

Not Affordable

$40.90

Affordable

Sierra Vista

$31.05

$22.13

Not Affordable

$37.62

Affordable

Tucson
(Pima County)

$30.73

$25.00

Not Affordable

$42.50

Affordable

Kingman

$29.85

$22.59

Not Affordable

$38.40

Affordable

Casa Grande

$26.34

$22.34

Not Affordable

$29.89

Affordable

Yuma

$25.60

$17.58

Not Affordable

$29.89

Affordable

Nogales

$24.73

$25.53

Affordable

$43.40

Affordable

Douglas

$13.01

$19.78

Affordable

$37.98

Affordable

State Average

$33.52

$23.74

Not Affordable

$40.36

Affordable

Selected Areas

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

Data Source: Arizona Department of Housing and Arizona Department of Economic Security.

5

2007

Workforce Housing
Affordability
Renting A Two Bedroom Apartment in Selected Counties
Despite the emphasis on homeownership, renter households comprise almost one-third (32%) of
the total occupied homes according to Census 2000 and American Community Survey, 2005. The
following graph shows the amount a household must earn to afford a two bedroom rental unit at
the area’s Fair Market Rent, based on the generally accepted affordability standard of paying no more
than 30% of a family’s income for housing costs.
The median hourly wage used in this analysis is that of Retail Sales Workers in the corresponding
county. Similar details for other selected occupations are presented in Table 1 in the Appendices.
$0

$2

$4

$6

$8

$10

Coconino

$ 14.31
$ 13.71
$ 13.37

$ 8.64

Mohave

$ 13.00

$ 8.72

$ 12.40

$ 8.31

$ 11.87

$ 8.00

Navajo

$ 11.73

$ 8.40

La Paz

$ 11.19

$ 8.59
$ 7.53

Hourly Wage Needed to Rent
Median Hourly Wage Paid

$ 11.38

$ 8.80

Graham

6

$ 14.85

$ 8.47

Yuma

State Average

$ 15.04

$ 9.38

Gila

$20

$ 15.04

$ 9.08

Yavapai

$18
$ 18.06

$ 8.87

Pima

Apache

$16

$ 9.62

Pinal

Cochise

$14

$ 8.52

Maricopa

Santa Cruz

$12

$ 10.04
$ 9.33

$ 13.52

Data Source: Arizona Department of Housing and Arizona Department of Economic Security.

2007

Rural & Urban Growth 2001-2006
Employment and Population Growth 2001 – 2006
Most of the economic growth in Arizona, in terms of employment and population, occurred in the urban
areas from 2001 -2006.
Statewide employment increased by 378,800 jobs during that period. Of the total increase, 332,400 jobs,
(87.8%) were attributed to employment growth in the urban areas. The remaining 46,400 jobs (12.2%)
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 and
barber shops). Further details are presented in Tables 2, 3 and 4, at the end of the report.
Population in the state increased by 985,315 persons during the 2001-2006 period. Close to two-thirds
(72.2% or 711,220 persons) became residents of urban areas. The remaining 27.8% (274,095 persons)
chose to live in one of the 13 rural counties of Arizona.
The following pie charts illustrate that the share of employment growth in rural counties (12.2%) has
been smaller than their population growth share (27.8%). It is very likely that limited employment
opportunities in the rural counties are a contributing factor to this variation.
Population Growth: 2001-2006

Employment Growth: 2001-2006
12.2% or
46,400
additional
jobs

27.8% or
274,095
additional
people

72.2% or
711,220
additional
people

87.8% or
332,400
additional
jobs

Data Source: Arizona Department of Housing and Arizona Department of Economic Security.

Rural
Urban

7

Appendices
Table 1:
Housing Affordability for Home Buyers and Renters for Common Occupations in Selected
Arizona Communities

2005

Hourly Median Wage

City/Town

County

Median
Home
Price*

Bullhead City
Casa Grande
Coolidge
Douglas
Eloy
Flagstaff
Florence
Globe
Holbrook
Kingman
Lake Havasu City
Nogales
Parker
Payson
Phoenix - Resale
Phoenix - New
Pinetop-Lakeside
Prescott
Safford
San Luis
Sedona
Show Low
Sierra Vista
Springerville
Tucson
Winslow
Yuma
Arizona

Mohave
Pinal
Pinal
Cochise
Pinal
Coconino
Pinal
Gila
Navajo
Mohave
Mohave
Santa Cruz
La Paz
Gila
Maricopa
Maricopa
Navajo
Yavapai
Graham
Yuma
Yavapai/Coconino
Navajo
Cochise
Apache
Pima
Navajo
Yuma
-

$123,000
$140,947
$119,000
$68,333
$80,000
$252,000
$109,450
$81,200
$85,000
$127,000
$264,000
$110,250
$81,000
$163,000
$203,000
$218,195
$205,000
$186,000
$90,000
$115,000
$454,500
$140,000
$153,902
$95,999
$190,000
$80,000
$124,900
$191,600

2 BDRM
Aptmnt
Monthly
Rent**

$673
$770
$770
$577
$770
$878
$770
$667
$570
$673
$673
$603
$609
$667
$817
$817
$570
$696
$544
$650
$696
$570
$577
$537
$673
$570
$650
$644

Wage
Needed
to Buy

$17.12
$19.62
$16.56
$9.51
$11.13
$35.07
$15.23
$11.29
$11.83
$17.68
$36.74
$15.34
$11.27
$22.69
$28.25
$30.37
$28.53
$25.89
$12.53
$16.01
$63.26
$19.49
$21.42
$13.36
$26.44
$11.13
$17.38
$26.67

Wage
Needed
to Rent

$12.94
$14.81
$14.81
$11.10
$14.81
$16.88
$14.81
$12.83
$10.96
$12.94
$12.94
$11.60
$11.71
$12.83
$15.71
$15.71
$10.96
$13.38
$10.46
$12.50
$13.38
$10.96
$11.10
$10.33
$12.94
$10.96
$12.50
$12.38

Police
Officer

$17.52
$17.87
$17.87
$21.88
$17.87
$17.08
$17.87
$17.25
$16.26
$17.52
$17.52
$15.87
$15.87
$17.25
$23.00
$23.00
$16.26
$17.55
$15.87
$18.82
$17.55
$16.26
$21.88
$15.87
$21.88
$16.26
$18.82
$22.08

Teacher

$15.87
$15.54
$15.54
$15.33
$15.54
$15.13
$15.54
$15.60
$16.54
$15.87
$15.87
$15.38
$15.38
$15.60
$15.86
$15.86
$16.54
$16.02
$15.38
$16.14
$16.02
$16.54
$15.33
$16.30
$18.24
$16.54
$16.14
$16.21

Retail
Worker

Nurse

Firefighter

Waitperson

$10.15
$8.35
$8.35
$8.02
$8.35
$8.06
$8.35
$7.23
$9.63
$10.15
$10.15
$7.48
$10.15
$7.23
$9.41
$9.41
$9.63
$8.68
$7.21
$8.34
$8.68
$9.63
$8.02
$6.64
$8.60
$9.63
$8.34
$9.09

$15.10
$16.48
$16.48
$15.49
$16.48
$15.38
$16.48
$17.07
$14.90
$15.10
$15.10
$15.38
$15.38
$17.07
$17.89
$17.89
$14.90
$17.58
$15.38
$15.49
$17.58
$14.90
$15.49
$15.77
$16.91
$14.90
$15.49
$17.27

$15.61
$13.03
$13.03
$15.10
$13.03
$13.76
$13.03
$11.49
$11.54
$15.61
$15.61
$11.54
$11.54
$11.49
$20.94
$20.94
$11.54
$12.20
$11.54
$13.17
$12.20
$11.54
$15.10
$11.54
$16.65
$11.54
$13.17
$17.51

$6.21
$6.37
$6.37
$6.21
$6.37
$6.45
$6.37
$6.38
$6.31
$6.21
$6.21
$6.25
$6.82
$6.38
$6.34
$6.34
$6.31
$6.58
$7.76
$6.22
$6.58
$6.31
$6.21
$6.35
$6.31
$6.31
$6.22
$6.34

Total of All
Occupations

$11.15
$12.37
$12.37
$11.66
$12.37
$11.04
$12.37
$11.57
$11.61
$11.15
$11.15
$10.92
$9.87
$11.57
$13.26
$13.26
$11.61
$13.28
$10.80
$9.81
$13.28
$11.61
$11.66
$12.12
$12.62
$11.61
$9.81
$12.85

Affordability Calculation Assumptions: 30% of income is allocated to housing. For buying a house additional assumptions included 5% down payment
6% 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. Some prices are for 2005, others are for 2004.			
** Apartment Rents - HUD 2005 Fair Market Rents. Rents shown are for 2-bedroom units.			

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.

The information in these three tables illustrates the affordability of owning a home or renting an apartment
in various communities around Arizona based on median home prices and hourly wages of workers in those
communities. While affordability in all categories between the 2005 and 2006 figures was widely disparate, the figure
for 2007 when compared to 2006 indicates a leveling of those priced out of the housing market.

2006

Hourly Median Wage

City/Town

County

Bullhead City
Casa Grande
Coolidge
Douglas
Eloy
Flagstaff
Florence
Globe
Holbrook
Kingman
Lake Havasu City
Nogales
Parker
Payson
Phoenix Metro - Resale
Phoenix Metro - New
Pinetop-Lakeside
Prescott
Safford
San Luis
Sedona
Show Low
Sierra Vista
Springerville
Tucson
Winslow
Yuma
Arizona

Mohave
Pinal
Pinal
Cochise
Pinal
Coconino
Pinal
Gila
Navajo
Mohave
Mohave
Santa Cruz
La Paz
Gila
Maricopa
Maricopa
Navajo
Yavapai
Graham
Yuma
Yavapai/Coconino
Navajo
Cochise
Apache
Pima
Navajo
Yuma
-

Median
Home
Price*

$180,260
$175,000
$114,000
$76,500
$119,900
$395,000
$195,950
$126,400
$140,750
$170,350
$269,950
$172,000
$245,000
$242,250
$264,900
$268,232
$297,000
$340,000
$99,545
$163,000
$513,000
$150,000
$165,000
$135,000
$211,502
$129,000
$224,900
$244,000

Hourly
Wage
Needed
to Buy

2 BDRM
Aptmnt
Monthly
Rent**

Hourly
Wage
Needed
to Rent

$26.15
$25.38
$16.54
$11.10
$17.38
$57.31
$28.44
$19.35
$20.42
$24.71
$39.17
$24.96
$35.56
$35.15
$38.44
$38.92
$43.10
$49.35
$14.44
$23.65
$74.44
$21.77
$23.94
$19.60
$30.69
$18.02
$32.63
$35.40

$653
$770
$770
$596
$770
$907
$770
$689
$589
$653
$653
$623
$572
$689
$770
$770
$589
$719
$562
$672
$719
$589
$596
$504
$746
$589
$672
$674

$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
$13.83
$11.33
$11.46
$9.69
$14.35
$11.33
$12.92
$12.96

Police
Officer

19.92
21.08
21.08
22.75
21.08
19.96
21.08
19.89
17.12
19.92
19.92
23.38
21.88
19.89
23.81
23.81
17.12
19.31
16.22
19.92
19.31
17.12
22.75
15.28
23.11
17.12
19.92
23.05

Teacher

Retail
Worker

Nurse

15.16
18.75
18.75
15.49
18.75
16.73
18.75
17.13
17.28
15.16
15.16
15.81
15.04
17.13
15.04
15.04
17.28
15.81
16.20
17.87
15.81
17.28
15.49
18.20
18.87
17.28
17.87
15.78

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

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

14.78
10.90
10.90
14.27
10.90
13.00
10.90
14.41
14.78
14.78
14.78
14.78
14.41
14.41
22.86
22.86
14.78
11.04
14.41
14.78
11.04
14.78
14.27
14.27
18.38
14.78
14.78
15.25

Waitperson

6.48
6.42
6.42
6.08
6.42
6.47
6.42
6.29
6.64
6.48
6.48
6.18
7.66
6.29
6.49
6.49
6.64
6.59
6.49
6.24
6.59
6.64
6.08
6.23
6.16
6.64
6.24
6.42

Total of All
Occupations

11.68
12.57
12.47
12.69
12.47
11.98
12.57
12.70
12.55
11.68
11.68
10.27
10.05
12.70
13.65
13.65
12.55
12.07
11.16
10.64
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 2006 Fair Market Rents. Rents shown are for 2-bedroom units.

Cannot afford to buy or rent
Can afford to only rent
Can afford to buy or rent

2007

Hourly Median Wage

City/Town

County

Bullhead City
Casa Grande
Coolidge
Douglas
Eloy
Flagstaff
Florence
Globe
Holbrook
Kingman
Lake Havasu City
Nogales
Parker
Payson
Phoenix Metro - Resale
Phoenix Metro - New
Pinetop-Lakeside
Prescott
Safford
San Luis
Sedona
Show Low
Sierra Vista
Springerville
Tucson
Williams
Winslow
Yuma
Arizona***

Mohave
Pinal
Pinal
Cochise
Pinal
Coconino
Pinal
Gila
Navajo
Mohave
Mohave
Santa Cruz
La Paz
Gila
Maricopa
Maricopa
Navajo
Yavapai
Graham
Yuma
Yavapai/Coconino
Navajo
Cochise
Apache
Pima
Coconino
Navajo
Yuma
-

Median
Home
Price*

$260,985
$180,000
$125,900
$88,900
$118,450
$370,000
$157,270
$142,000
$149,500
$204,000
$249,000
$169,000
$279,000
$300,000
$262,570
$296,425
$329,593
$319,000
$168,500
$136,000
$577,500
$337,144
$212,228
$148,900
$210,000
$335,000
$112,000
$174,950
$260,000

Hourly
Wage
Needed
to Buy

2 BDRM
Aptmnt
Monthly
Rent**

Hourly
Wage
Needed
to Rent

$38.19
$26.34
$18.42
$13.01
$17.49
$54.14
$23.01
$20.78
$21.88
$29.85
$36.77
$24.73
$40.83
$43.90
$38.42
$43.38
$48.23
$48.68
$24.66
$19.90
$84.50
$49.33
$31.05
$21.79
$30.73
$49.02
$16.39
$25.60
$38.04

$676
$782
$782
$617
$782
$939
$782
$713
$610
$676
$676
$645
$592
$713
$782
$782
$610
$744
$582
$695
$744
$610
$617
$522
$772
$939
$610
$695
$703

$13.00
$15.04
$15.04
$11.87
$15.04
$18.06
$15.04
$13.71
$11.73
$13.00
$13.00
$12.40
$11.38
$13.71
$15.04
$15.04
$11.73
$14.31
$11.19
$13.37
$14.31
$11.73
$11.87
$10.04
$14.85
$18.06
$11.73
$13.37
$13.52

Police
Officer

22.59
22.13
22.13
19.78
22.13
22.78
22.13
20.39
17.30
22.59
22.59
25.53
21.55
20.39
24.06
24.06
17.30
21.55
18.64
17.58
21.55
17.30
22.13
18.02
25.00
22.78
17.30
17.58
23.74

Teacher

Retail
Worker

Nurse

15.83
21.39
21.39
17.23
21.39
17.28
21.39
17.14
17.51
15.83
15.83
17.81
15.83
17.14
15.59
15.59
17.51
17.68
16.25
15.11
17.68
17.51
21.39
17.88
17.35
17.28
17.51
15.11
16.16

8.72
8.87
8.87
8.00
8.87
8.52
8.87
8.47
8.40
8.72
8.72
8.31
8.80
8.47
9.62
9.62
8.40
9.38
8.59
8.64
9.38
8.40
8.87
7.53
9.08
8.52
8.40
8.64
9.33

18.24
20.26
20.26
17.23
20.26
19.88
20.26
18.48
19.09
18.24
18.24
14.08
17.24
18.48
20.04
20.04
19.09
19.71
18.48
17.12
19.71
19.09
20.26
20.02
19.37
19.88
19.09
17.12
19.72

Firefighter

19.71
15.37
15.37
13.16
15.37
15.62
15.37
14.38
13.43
19.71
19.71
13.16
15.37
14.38
21.26
21.26
13.43
12.97
13.11
15.37
12.97
13.43
15.37
13.43
20.23
15.62
13.43
15.37
17.59

Waitperson

6.43
6.61
6.61
6.24
6.61
6.72
6.61
6.43
6.49
6.43
6.43
6.83
6.70
6.43
6.77
6.77
6.49
6.78
6.53
6.60
6.78
6.49
6.61
6.40
6.38
6.72
6.49
6.60
6.67

Total of All
Occupations

12.09
12.88
12.88
13.36
12.88
12.54
12.88
12.87
12.92
12.09
12.09
11.02
11.30
12.87
14.07
14.07
12.92
13.33
13.04
10.06
13.33
12.92
12.88
13.34
12.56
12.54
12.92
10.06
12.97

Affordability Calculation Assumptions: 30% of income is allocated to housing. For buying a house additional assumptions included 5% down payment, 6.6% 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 (Pinetop-Lakeside, Show Low, Springerville) are average prices. Most prices are for April 2007 and some are for May, June,
or for Q1, 2007.
** Apartment Rents - HUD 2007 Fair Market Rents. Rents shown are for 2-bedroom units.
*** The Federal Housing Finance Board has revised the Median Home Prices for 2005 and 2006 from those reported in the
2006 Arizona’s Housing Market at a Glance.

8

2007

General Trends in
Arizona’s Housing Market

Appendices
Table 2:
Employment Growth and Housing Affordability by Industry - Arizona

Industry
Natural Resources and Mining

Employment
2006

Employment
Change
2001-2006
Numbers

Employment
Change
2001-2006
Percent

Median
Hourly
Wages
Statewide
2006

Can Afford
to Buy
Median
Priced
House

Can Afford
to Rent
2-BDRM
Apartment

9,600

9,900

300

3.1%

$18.64

No

Yes

Construction

173,600

245,500

71,900

41.4%

$15.27

No

Yes

Manufacturing

201,700

187,300

(14,400)

-7.1%

$16.44

No

Yes

Wholesale Trade

95,900

105,600

9,700

10.1%

$16.29

No

Yes

268,100

321,800

53,700

20.0%

$10.54

No

No

Transportation, Warehousing and Utilities

76,600

83,400

6,800

8.9%

$17.72

No

Yes

Information (Publishing, motion pictures and videos,
radio and TV stations, and telecommunications)

53,900

44,800

(9,100)

-16.9%

$18.24

No

Yes

109,300

131,200

21,900

20.0%

$17.24

No

Yes

Retail Trade (Retail store workers)

Finance and Insurance
Real Estate Rental and Leasing

44,100

51,900

7,800

17.7%

$12.86

No

No

Professional and Business Services (Legal services,
management services, computers services, accounting
services, engineering services, payroll services)

319,900

394,700

74,800

23.4%

$19.81

No

Yes

Educational Services (Businesses that provide
educational services to schools, colleges, and
universities plus specialized schools such as
computer training, language schools, flight
training, cosmetology)

28,300

43,200

14,900

52.7%

$15.31

No

Yes

Health Care and Social Assistance

191,600

247,300

55,700

29.1%

$14.23

No

Yes

Leisure and Hospitality

230,000

266,700

36,700

16.0%

$10.07

No

No

84,700

100,600

15,900

18.8%

$11.26

No

No

377,800

410,000

32,200

8.5%

$17.76

No

Yes

2,265,100

2,643,900

378,800

16.7%

$12.97

No

No

Other Services (Auto repair shops, barber shops,
other repair shops)
Government - Federal, State and Local (All
government employees including teachers,
police)
Total Employment

10

Employment
2001

Data Source: Arizona Department of Housing and Arizona Department of Economic Security.

Appendices
Table 3:
Employment Growth and Housing Affordability by Industry - Urban Arizona*

Industry
Natural Resources and Mining

Urban
Employment
2001

Urban
Employment
2006

Urban
Urban
Can Afford
Can Afford
Employment Employment
**Urban
to Buy
to Rent
Change
Change
Median Hourly Median
2-BDRM
2001-2006
2001-2006
Wages
Priced
Apartment
Numbers
Percent
House

4,200

4,300

100

2.4%

$17.86

No

Yes

Construction

151,000

212,800

61,800

40.9%

$15.58

No

Yes

Manufacturing

186,200

169,100

(17,100)

-9.2%

$16.57

No

Yes

Wholesale Trade

87,000

96,400

9,400

10.8%

$16.47

No

Yes

224,900

271,400

46,500

20.7%

$11.22

No

No

Transportation, Warehousing and Utilities

67,800

73,500

5,700

8.4%

$17.90

No

Yes

Information (Publishing, motion pictures and videos,
radio and TV stations and telecommunications)

49,300

39,900

(9,400)

-19.1%

$19.02

No

Yes

107,900

128,000

20,100

18.6%

$15.81

No

Yes

Retail Trade (Retail store workers)

Finance and Insurance
Real Estate Rental and Leasing

36,200

43,600

7,400

20.4%

$14.73

No

No

Professional and Business Services (Legal services,
management services, computers services, accounting
services, engineering services, payroll services)

300,700

369,700

69,000

22.9%

$19.86

No

Yes

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

41,200

15,012

57.3%

$15.25

No

Yes

Health Care and Social Assistance

159,312

206,900

47,588

29.9%

$14.92

No

No

Leisure and Hospitality

190,700

221,400

30,700

16.1%

$10.23

No

No

73,600

88,900

15,300

20.8%

$11.31

No

No

277,200

307,500

30,300

10.9%

$18.29

No

Yes

1,942,200

2,274,600

332,400

17.1%

$14.07

No

No

Other Services (Auto repair shops, barber shops, other
repair shops)
Government - Federal, State and Local (All
government employees including teachers, police)
Total Employment

* Urban Arizona is comprised of the Phoenix-Mesa-Scottsdale and Tucson Metropolitan Areas.
** 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
Table 4:
Employment Growth and Housing Affordability by Industry - Rural Arizona*

Industry
Natural Resources and Mining

Rural
Employment
2001

Rural
Rural
Can Afford
Rural
Employment Employment
**Rural
Buying a
Employment
Change
Change
Median
Median2006
2001-2006
2001-2006 Hourly Wages
Priced House
Numbers
Percent

Can Afford
Renting a
2-BDRM
Apartment

5,400

5,600

200

3.7%

---

---

---

Construction

22,600

32,700

10,100

44.7%

$13.97

No

Yes

Manufacturing

15,500

18,200

2,700

17.4%

$13.44

No

Yes

Wholesale Trade

8,900

9,200

300

3.4%

$14.20

No

Yes

43,200

50,400

7,200

16.7%

$10.04

No

No

Transportation, Warehousing and Utilities

8,800

9,900

1,100

12.5%

$15.26

No

Yes

Information (Publishing, motion pictures and videos,
radio and TV stations and telecommunications)

4,600

4,900

300

6.5%

$13.14

No

Yes

Finance and Insurance

1,400

3,200

1,800

128.6%

$13.00

No

Yes

Retail Trade (Retail store workers)

Real Estate Rental and Leasing

7,900

8,300

400

5.1%

$11.82

No

No

19,200

25,000

5,800

30.2%

$16.23

No

Yes

2,112

2,000

(112)

-5.3%

$13.98

No

Yes

Health Care and Social Assistance

32,288

40,400

8,112

25.1%

$13.61

No

Yes

Leisure and Hospitality

39,300

45,300

6,000

15.3%

$8.67

No

No

Other Services (Auto repair shops, barber shops,
other repair shops)

11,100

11,700

600

5.4%

$9.66

No

No

Government - Federal, State and Local (All
government employees including teachers,
police)

100,600

102,500

1,900

1.9%

$17.43

No

Yes

Total Employment

322,900

369,300

46,400

14.4%

$12.09

No

No

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)

* Rural Arizona is comprised of Arizona minus Phoenix-Mesa-Scottsdale and Tucson Metropolitan Areas.
** Mohave County hourly wages by industry data was used as a substitute for the same category of data in the rural areas of Arizona. 			
							

12

Data Source: Arizona Department of Housing and Arizona Department of Economic Security.

Appendices
Table 5:
Median Home Values and Household Income Data by Arizona Counties
Median Home Value

Median Home Value
Increased Faster Than
Median Household
Income*

Median Household Income

%
Increase
19902000

%
Increase
20002005

%
Increase
20002005

% Net
Increase
1990 - 2000

% Net
Increase
2000 - 2005

$76,600

151.2%

$115,400

47.7%

65.6%

0.9%

85.6%

82.8%

43.2%

12.2%

4.6%

$213,500

18.6%

$41,184

46.5%

7.7%

26.0%

42.2%

$100,100
$80,900

$30,917

NA

47.5%

NA

23.3%

NA

$29,668

NA

60.8%

NA

0.1%

$40,700

NA

$27,491

$39,384

NA

43.3%

NA

10.8%

La Paz

NA

NA

$16,555

$25,839

NA

56.1%

NA

-3.8%

NA

52.5%

64.6%

$30,797

$45,358

$48,711

47.3%

7.4%

5.3%

57.2%

27.2%

65.3%

$24,002

$31,521

$35,477

31.3%

12.6%

-4.1%

52.7%

$94,100

49.5%

22.2%

$19,452

$28,569

$31,272

46.9%

9.5%

2.6%

12.7%

$114,600

$167,400

49.8%

46.1%

$25,401

$36,758

$41,521

44.7%

13.0%

5.1%

33.1%

$93,900

$131,000

75.8%

39.5%

$21,301

$35,856

$41,164

68.3%

14.8%

7.5%

24.7%

$71,500

$94,700

NA

32.4%

NA

$22,066

$29,710

NA

34.6%

NA

-2.2%

NA

Yavapai

$85,300

$138,000

$192,500

61.8%

39.5%

$22,060

$34,901

$40,746

58.2%

16.7%

3.6%

22.7%

Yuma

$63,700

$85,100

$106,800

33.6%

25.5%

$23,635

$32,182

$35,956

36.2%

11.7%

-2.6%

13.8%

State of
Arizona

$79,700

$121,300

$185,400

52.2%

52.8%

$27,540

$40,558

$44,282

47.3%

9.2%

4.9%

43.7%

County

1990

2000

Apache

$16,600

$41,700

Cochise

$59,700

$88,200

Coconino

$82,600

$142,500

Gila

$58,600

Graham

$50,300

Greenlee

2005

1990

2000

2005

83.7%

$14,100

$23,344

$23,545

30.8%

$22,425

$32,105

$36,027

72.5%

49.8%

$26,112

$38,256

NA

70.8%

NA

$20,964

NA

60.8%

NA

$18,455

$62,700

NA

54.1%

NA

$56,800

$86,500

NA

52.3%

Maricopa

$84,700

$129,200

$212,700

Mohave

$74,900

$95,300

$157,500

Navajo

$51,500

$77,000

Pima

$76,500

Pinal

$53,400

Santa Cruz

%
Increase
19902000

* These numbers were derived by subtracting the percent increase in “median household income” from the percent increase in “median home values”		
for the 1990-2000 and 2000-2005 periods.
The American Community Survey data was used for the 2005 home value estimates and median household income numbers. The 2005 data from American
Community Survey is in 2005 inflation-adjusted dollars.									
		
										

Data Source: Arizona Department of Housing, U.S. Census Bureau and 2005 American Community Survey.

13

2007

Governor’s Affordable
Housing Forum Sponsors
Arizona Department of Housing

Sources
Arizona Association of REALTORS®
Arizona Department of Economic Security
Arizona Department of Housing
Realty Studies, ASU Polytechnic
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 Labor
U.S. Department of Housing and Urban Development

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.

Arizona Department of Housing
1110 W. Washington, Suite 310
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
Dr. Fred Karnas
Center for Housing Affordability & Livable Communities Administrator
(602) 771-1035 fredk@housingaz.com