2008

Arizona’s Housing Market

... a glance.

TRENDS
. . . shaping Arizona’s future.

2008 GOVERNOR’S HOUSING FORUM

September 9-11, 2008 • High Country Conference Center • Flagstaff, AZ

JANET NAPOLITANO

FRED KARNAS

GOVERNOR

DIRECTOR

September 2008
Dear Community Partner,
The past year has brought many changes to Arizona’s economy. The changes are so rapid, dramatic
and challenging that it is hard to match existing data with the realities at the street level. This year’s
Arizona‘s Housing Market….a glance report, maintains our traditional format for comparison purposes.
We realize, however, that the rapid pace of change means that existing data does not fully capture all
that has been happening in the housing market and the broader economy of the state over the past
six months.
So, you may want to read this year’s report along with your daily newspaper. If you do, you will see that
the silver lining of lower housing prices in some communities needs to be understood in the context
of the impact of rising gas prices, growing utility expenses and increased food costs. Families who just
a year ago could not find an affordable home to purchase are now seeing home values come down
to a price that they thought they would be able to afford, only to be priced out by these increased
household budget pressures.
The year ahead will be a challenge for all of us who care about affordable homes for all Arizonans. We
hope the information in this report and our efforts at this years Governor’s Housing Forum to look at
the trends that will shape Arizona’s housing market in the years ahead will provide new insights on
how we can all work together for a better Arizona.
I assure you that we at the Arizona Department of Housing and Arizona Housing Finance Authority
look forward to building on our past partnerships to collaboratively take on the challenges before us.
Until all are safely and affordably housed…
Sincerely,

Fred Karnas
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

2008

Arizona’s Housing Market

. . . a glance.

It has been a tumultuous year in the housing market. Economists are predicting that the housing industry
will continue to struggle through much of 2009. The troubles in housing, combined with related turmoil in
the financial sector, are together having a negative effect on most other economic sectors. While debate
continues as to whether the U.S. economy is in recession, most experts agree that Arizona is already in a
recession.
While the high inventory of unsold homes continues, a slowdown in the construction of new homes, higher
number of mortgage interest rate resets for adjustable loans, and tighter mortgages approval standards have
all contributed to further increase the housing problems both at the national and state levels.
The number of homes in foreclosures in Arizona, in the month of June 2008, was the third highest in the
nation after Nevada and California. Most of the foreclosures in Arizona are found in Maricopa County.
Foreclosures once concentrated in the Valley’s more affordable fringes, have moved inward to the various
areas of the Valley, including Central Phoenix, Scottsdale, Fountain Hills and even Paradise Valley. According
to Information Market, the number of foreclosures in metro Phoenix for the first half of 2008 was estimated at
16,647 as compared to 9,966 for the same period in 2007, and 1,070 in 2006. Due to the size of it’s population,
Pima County has the second largest number of foreclosures in the state. However, Pinal County, with a much
smaller population, has the state’s highest percentage of foreclosures. Some market analysts believe that the
number of foreclosures in Arizona and metro Phoenix may not yet have reached its peak.
In the midst of these market adjustments are thousands of Arizona families, struggling to find and secure
affordable housing as renters or homeowners. Affordable housing is generally described as standard and
sanitary dwellings that cost no more than 30 percent of monthly household gross income. The U.S. Census
Bureau’s 2006 American Community Survey data reveal that in Arizona, almost half of all renters and close to
38 percent of homeowners spend more than 30 percent of their incomes on housing.
The analyses and tables in this document are based on data available for early 2008 or for 2007 on housing,
income, population, employment, and wages by occupation and by industry. To enable equitable comparison
and consistency in this report, communities are compared 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.
The information compiled for this report also reveals that median home prices in Arizona’s rural communities
range from a relatively low price of $86,750 in Winslow to a high price of $462,500 in the Sedona area. The
most expensive among all Arizona rural and urban communities is the Town of Paradise Valley, with a median
home sales price of $1,750,000. In general, home prices are much higher in urban areas and in communities
that attract large numbers of seasonal and recreational tourists.
Comparing this year’s report on affordability with those of previous years, it is clear that median home sales
prices have fallen in many communities and affordability has improved in some communities. But because
this report uses only income versus housing cost, it does not reflect the growing pressures on family budgets
from significant increases in gas price, food price and prices of many other family essential purchases, which
may more than offset the benefits of reduced housing costs.

1

2008 General Trends in
Arizona’s Housing Market . . . a glance.

Arizona 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, except for 2007.
• From year 2000 to 2007, the median sales price of homes in Arizona increased by 75%. During the same
period, median family income increased by only 13.8%.
• From 2006 to 2007, the median sales price of homes in Arizona decreased by 5.4%. During the same
period, median family income decreased by 1%.
• Home prices have also been declining in 2008.

2

For census data by Arizona counties on median home values and household income for the years
1990 – 2006, see Table 5 in the Appendices.

$ 300,000
$240,000

$ 250,000
$ 200,000
$ 150,000

$140,600 $143,900

$ 100,000
$ 50,000
$0

$47,800

2000

$49,700

2001

$146,000

$51,900

2002

$156,500

$52,700

2003

$260,000

$246,000

$54,900

$54,400

$169,000

$53,300

2004

$53,300

2005

2006

2007

Median Home Price
Median Family Income

Data Source: Arizona Department of Housing, Federal Finance Board, and U.S. Department of Housing and Urban Development.

2008 General Trends in
Arizona’s Housing Market . . . a glance.

Arizona Home Prices vs. Other States
Based on the House Price Index (HPI) by the Office of Federal Housing Enterprise Oversight (OFHEO),
housing price appreciation for Arizona was ranked number 48 nationally for the first quarter of 2007 to the
first quarter of 2008. Two years ago, Arizona’s housing appreciation rate was ranked number one among all
states. This is a clear indication of a significant slowdown in the Arizona’s housing market. It is very unusual
for states such as Arizona, Florida, Nevada and California to experience such a depressed state in their
housing markets as evidenced by declining housing prices.

STATE

ANNUAL PRICE INCREASE OR DECREASE

RANKING

Wyoming

6.34%

1

Utah

5.58%

2

Montana

4.91%

3

Texas

4.69%

4

Alabama

4.46%

5

North Dakota

4.21%

6

South Dakota

4.21%

7

North Carolina

4.03%

8

Arizona

-5.50%

48

Florida

-8.15%

49

Nevada

-10.30%

50

California

-10.58%

51

-0.03%

-

U.S. Average

Data Source: Office of Federal Housing Enterprise Oversight (OFHEO), first quarter, 2008.

3

2008 General Trends in
Arizona’s Housing Market . . . a glance.
Median Home Prices - 2008
Median home prices in Arizona rural communities range from a low price of $86,750 in Winslow to a high
price of $462,500 in the Sedona area. For cities and towns in Maricopa County, the lowest median price of
$151,905 was reported for El Mirage, and the highest median price of $1,750,000 for Paradise Valley. While
the first two bar charts below show the 2008 median home prices for selected rural communities, the third
bar chart is exclusively for jurisdictions in Maricopa County.
In general, home prices are much higher in urban communities and those that attract tourists, or have a
relatively higher percentage of seasonal, recreational, or occasional use homes.

High-Price Housing Areas

$ 500,000
$ 400,000
$ 300,000
$ 200,000
$ 100,000
$0

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Low-Price Housing Areas

$ 160,000
$ 140,000
$ 120,000
$ 100,000
$ 80,000
$ 60,000

$ 600,000

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Major Cities or Towns in Metro Phoenix (first quarter, 2008)

$ 500,000
$ 400,000
$ 300,000
$ 200,000
$ 100,000
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NOTE: Median Price for Paradise Valley was $1,750,000; too large to show on a bar chart along with the other Maricopa County cities.

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ira

2008 Workforce Housing Affordability . . . a glance.
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 buying a house in only
three 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 afford buying a house in nine out of the 13 following jurisdictions.

One Income Earner Per Household

Two Income Earners Per Household

Hourly Wage Needed to
Buy a Median Price House

Median Hourly Wage of a
Police Officer

Affordability
Status

Hourly Wage of a Police Officer
and Another Income Earner*

Affordability
Status

Sedona

$67.12

$22.01

Not Affordable

$37.42

Not Affordable

Flagstaff

$45.71

$23.47

Not Affordable

$39.90

Not Affordable

Pinetop-Lakeside

$37.44

$14.35

Not Affordable

$24.40

Not Affordable

Payson

$37.72

$21.61

Not Affordable

$36.74

Not Affordable

Phoenix
(Maricopa County)

$30.66

$24.84

Not Affordable

$42.23

Affordable

Sierra Vista

$27.56

$21.17

Not Affordable

$35.99

Affordable

Tucson
(Pima County)

$29.01

$25.87

Not Affordable

$43.98

Affordable

Kingman

$19.95

$24.42

Affordable

$41.51

Affordable

Casa Grande

$21.19

$17.08

Not Affordable

$29.04

Affordable

Yuma

$28.70

$18.45

Not Affordable

$31.37

Affordable

Nogales

$24.13

$24.84

Affordable

$42.23

Affordable

Douglas

$15.82

$21.17

Affordable

$35.99

Affordable

State Average

$25.70

$24.34

Not Affordable

$41.38

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 Commerce – Research Administration.

5

2008 Workforce Housing Affordability . . . a glance.
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 in Arizona according to Census 2000 and American Community Survey, 2006. 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
one’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		

$5		

$10		

Coconino

$ 14.65

$ 9.30

Yuma

$ 14.29

$ 9.32

Mohave

$ 13.90

$ 11.75

Santa Cruz

$ 13.60

$ 8.60

Cochise

$ 13.04

$ 8.26

$ 12.96

$ 7.17

Navajo

$ 12.85

$ 8.61

La Paz

$ 8.72

Hourly Wage Needed to Rent
Median Hourly Wage Paid

$ 12.54

$ 8.98

Graham

State Average

$ 15.04

$ 8.73

Pima

Apache

$ 15.73

$ 9.53

Gila

Greenlee

$ 16.58

$ 8.89

Yavapai

$25

$ 16.58

$ 9.66

Pinal

$20		
$ 19.46

$ 8.55

Maricopa

6

$15		

$ 12.25
$ 11.04

$ 7.32
$ 9.44

$ 14.71

Data Source: Arizona Department of Housing and Arizona Department of Commerce - Research Administration.

2008 Rural & Urban Growth . . . a glance.
Employment and Population Growth 2001 – 2007
Most of the economic growth in Arizona, in terms of employment and population occurred in the urban
areas from 2001 -2007.
Statewide employment increased by 400,900 jobs during that period. Of the total increase, 349,300 jobs,
(87.1%) were attributed to employment growth in the urban areas. The remaining 51,600 jobs (12.9%)
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.
Arizona’s economy has been following a declining growth path in 2008, as demonstrated by the loss of
33,000 civilian non-farm jobs for the January to June period.
Population in the state increased by 1,180,299 persons during the 2001-2007 period. Close to two-thirds
(71.8% or 847,992 persons) became resident of urban areas. The remaining 28.2% (332,307 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 (12.9%) has been
smaller than their population growth share (28.2%). It is very likely that limited employment opportunities
in the rural counties are a contributing factor to this variation.

Population Growth: 2001-2007

Employment Growth: 2001-2007
12.9% or
51,600
additional
jobs

28.2% or
332,307
additional
people

71.8% or
847,992
additional
people

87.1% or
349,300
additional
jobs
Rural
Urban

Data Source: Arizona Department of Housing and Arizona Department of Commerce - Research Administration.

7

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

2006

8

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

$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

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
$719
$589
$596
$504
$746
$589
$672
$674

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
$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

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

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

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

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.

Data Source: Arizona Department of Housing, Arizona Department of Commerce, U.S. Department of Housing and Urban Development,
ASU Polytechnic - Real Estate Studies, 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.

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

$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

2 BDRM
Aptmnt
Monthly
Rent**

$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

Hourly
Wage
Needed
to Rent

$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

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

Retail
Worker

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

Nurse

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

Total of All
Occupations

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

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 first quarter, 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.

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

2008

Hourly Median Wage

City/Town

County

Bullhead City
Casa Grande
Clifton
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
Greenlee
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*

$241,000
$146,000
$104,983
$119,950
$109,000
$95,930
$315,000
$141,660
$127,500
$115,000
$151,000
$247,500
$166,251
$270,000
$259,900
$211,305
$253,505
$258,000
$311,054
$174,000
$125,000
$462,500
$234,500
$189,899
$143,692
$199,900
$220,000
$86,750
$197,750
$246,000

Hourly
Wage
Needed
to Buy

$34.97
$21.19
$15.24
$17.41
$15.82
$13.92
$45.71
$20.56
$18.50
$16.69
$21.91
$35.92
$24.13
$39.18
$37.72
$30.66
$36.79
$37.44
$45.14
$25.25
$18.14
$67.12
$34.03
$27.56
$20.85
$29.01
$31.93
$12.59
$28.70
$35.70

2 BDRM
Aptmnt
Monthly
Rent**

$723
$862
$674
$862
$678
$862
$1,012
$862
$782
$668
$723
$723
$707
$652
$782
$8.62
$862
$668
$818
$637
$743
$818
$668
$678
$574
$762
$1,012
$668
$743
$762

Hourly
Wage
Needed
to Rent

$13.90
$16.58
$12.96
$16.58
$13.04
$16.58
$19.46
$16.58
$15.04
$12.85
$13.90
$13.90
$13.60
$12.54
$15.04
$16.58
$16.58
$12.85
$15.73
$12.25
$14.29
$15.73
$12.85
$13.04
$11.04
$14.65
$19.46
$12.85
$14.29
$14.65

Police
Officer

24.42
17.08
16.11
17.08
21.17
17.08
23.47
17.08
21.68
14.35
24.42
24.42
24.84
23.80
21.69
24.84
24.84
14.35
22.01
23.41
18.45
22.01
14.35
21.17
19.54
25.87
23.47
14.35
18.45
24.34

Teacher

16.74
21.93
16.59
21.93
16.10
21.93
18.24
21.93
16.24
18.12
16.74
16.74
18.51
17.41
16.24
16.28
16.28
18.12
18.41
16.84
17.37
18.41
18.12
16.10
18.71
17.86
18.24
18.12
17.37
16.91

Retail
Worker

11.75
8.89
7.17
8.89
8.28
8.89
8.55
8.89
8.73
8.61
11.75
11.75
8.60
8.98
8.73
9.66
9.66
8.61
9.53
8.72
9.32
9.53
8.61
8.28
7.32
9.30
8.55
8.61
9.32
9.44

Nurse

19.38
20.81
17.77
20.81
17.77
20.81
18.07
20.81
19.28
19.22
19.38
19.38
13.34
16.69
19.28
20.54
20.54
19.22
20.71
17.77
18.40
20.71
19.22
17.77
18.45
20.06
18.07
19.22
18.40
20.24

Firefighter

18.38
18.52
15.39
18.52
16.00
18.52
16.86
18.52
15.39
14.35
18.38
18.38
16.23
15.39
15.39
22.19
22.19
14.35
16.03
15.39
15.58
16.03
14.35
16.00
13.57
18.76
16.86
14.35
15.58
17.83

Waitperson

7.37
7.25
7.18
7.25
7.08
7.25
7.22
7.25
7.12
7.29
7.37
7.37
7.34
7.18
7.12
7.30
7.30
7.29
7.36
7.18
7.20
7.36
7.29
7.08
7.10
7.17
7.22
7.29
7.20
7.26

Total of All
Occupations

12.73
13.21
19.55
13.21
14.04
13.21
12.84
13.21
14.33
13.77
12.73
12.73
11.17
11.44
14.33
14.56
14.56
13.77
13.06
12.88
11.46
13.06
13.77
14.04
13.56
14.18
12.84
13.77
11.46
14.25

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 2008 and some are for May, June, or for first quarter, 2008.
** Apartment Rents - HUD 2008 Fair Market Rents. Rents shown are for 2-bedroom units.

2008
General Trends in
Arizona’s Housing Market

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

Industry
Mining

Employment
2007

Employment
Change
2001-2007
Numbers

Employment
Change
2001-2007
Percent

Median
Hourly
Wages
Statewide
2007

Can Afford
to Buy
Median
Priced
House

Can Afford
to Rent
2-BDRM
Apartment

9,600

10,700

1,100

11.5%

$19.71

No

Yes

Construction

173,600

248,000

74,400

42.9%

$15.83

No

Yes

Manufacturing

201,700

186,600

(15,100)

-7.5%

$17.72

No

Yes

Wholesale Trade

95,900

109,300

13,400

14.0%

$16.53

No

Yes

268,100

330,000

61,900

23.1%

$11.15

No

No

Retail Trade (Retail store workers)
Transportation, Warehousing and Utilities

76,600

83,100

6,500

8.5%

$18.20

No

Yes

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

53,900

43,800

(10,100)

-18.7%

$18.78

No

Yes

109,300

133,900

24,600

22.5%

$17.16

No

Yes

Finance and Insurance

10

Employment
2001

Real Estate Rental and Leasing

44,100

53,700

9,600

21.8%

$13.86

No

No

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

319,900

409,100

89,200

27.9%

$21.35

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

45,400

17,100

60.4%

$16.03

No

Yes

Health Care and Social Assistance

191,600

252,200

60,600

31.6%

$14.68

No

Yes

Leisure and Hospitality

230,000

276,200

46,200

20.1%

$10.52

No

No

84,700

105,000

20,300

24.0%

$12.23

No

No

377,800

421,300

43,500

11.5%

$18.65

No

Yes

2,265,100

2,708,300

443,200

19.6%

$14.25

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

NOTE: 2007 employment data are the average of January to December numbers.

Data Source: Arizona Department of Housing and Arizona Department of Commerce - Research Administration.

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

Industry
Mining

Urban
Employment
2001

Urban
Employment
2007

Urban
Urban
Can Afford
Hourly WagesCan Afford
Employment Employment
to Buy
Maricopa
to Rent
Change
Change
Median
County (for
2-BDRM
2001-2007
2001-2007
Priced
Urban Arizona)
Apartment
Numbers
Percent
House

4,200

4,700

500

11.9%

$17.50

No

Yes

Construction

151,000

215,800

64,800

42.9%

$16.26

No

No

Manufacturing

186,200

167,600

(18,600)

-10.0%

$17.99

No

Yes

Wholesale Trade

87,000

98,900

11,900

13.7%

$17.11

No

Yes

224,900

279,100

54,200

24.1%

$11.42

No

No

Retail Trade (Retail store workers)
Transportation, Warehousing and Utilities

67,800

73,400

5,600

8.3%

$18.23

No

Yes

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

49,300

37,700

(11,600)

-23.5%

$18.99

No

Yes

107,900

130,200

22,300

20.7%

$17.45

No

Yes

Finance and Insurance
Real Estate Rental and Leasing

36,200

45,500

9,300

25.7%

$14.33

No

No

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

300,700

383,000

82,300

27.4%

$21.41

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

43,000

16,812

64.2%

$16.08

No

No

Health Care and Social Assistance

159,312

211,100

51,788

32.5%

$15.09

No

No

Leisure and Hospitality

190,700

232,200

41,500

21.8%

$10.79

No

No

73,600

93,300

19,700

26.8%

$12.37

No

No

277,200

318,200

41,000

14.8%

$19.72

No

Yes

1,942,200

2,333,700

391,500

20.2%

$14.56

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 Maricopa County and Pima County.
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 Commerce.

11

Appendices
Table 4:
Employment Growth and Housing Affordability by Industry - Rural Arizona*

Industry
Mining

Rural
Rural
Hourly Wages- Can Afford
Rural
Employment Employment
Mohave
Buying a
Employment
Change
Change
County (for
Median2007
2001-2007
2001-2007
Rural Arizona) Priced House
Numbers
Percent

Can Afford
Renting a
2-BDRM
Apartment

5,400

6,000

600

11.1%

$18.09

No

Yes

Construction

22,600

32,200

9,600

42.5%

$14.65

No

Yes

Manufacturing

15,500

19,000

3,500

22.6%

$14.02

No

Yes

Wholesale Trade

8,900

10,400

1,500

16.9%

$14.45

No

Yes

43,200

50,900

7,700

17.8%

$10.66

No

No

Retail Trade (Retail store workers)

12

Rural
Employment
2001

Transportation, Warehousing and Utilities

8,800

9,700

900

10.2%

$16.13

No

Yes

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

4,600

6,100

1,500

32.6%

$13.77

No

No

Finance and Insurance

1,400

3,700

2,300

164.3%

$15.02

No

Yes

Real Estate Rental and Leasing

7,900

8,200

300

3.8%

$12.50

No

No

19,200

26,100

6,900

35.9%

$14.29

No

Yes

2,112

2,400

288

13.6%

$14.20

No

Yes

Health Care and Social Assistance

32,288

41,100

8,812

27.3%

$14.20

No

Yes

Leisure and Hospitality

39,300

44,000

4,700

12.0%

$9.72

No

No

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

11,100

11,700

600

5.4%

$10.97

No

No

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

100,600

103,100

2,500

2.5%

$17.02

No

Yes

Total Employment

322,900

374,600

51,700

16.0%

$12.73

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 Maricopa County and Pima County.
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. 			
							

Data Source: Arizona Department of Housing and Arizona Department of Commerce - Research Administration.

Appendices
Table 5:
1990,2000 and 2006 Median Home Value and Household Income Data
for Arizona and Counties
Median Home Value

County

1990

2000

2006

Median Home Value
Increased Faster Than
Median Household
Income*

Median Household Income

%
Increase
19902000

%
Increase
20002006

1990

2000

2006

%
Increase
19902000

%
Increase
20002006

% Net
Increase
1990 - 2000

% Net
Increase
2000 - 2006

Apache

$16,600

$41,700

$66,700

151.2%

60.0%

$14,100

$23,344

$26,502

65.6%

13.5%

85.6%

46.4%

Cochise

$59,700

$88,200

$136,700

47.7%

55.0%

$22,425

$32,105

$38,427

43.2%

19.7%

4.6%

35.3%

Coconino

$82,600

$142,500

$171,900

72.5%

20.6%

$26,112

$38,256

$43,510

46.5%

13.7%

26.0%

6.9%

Gila

$58,600

$100,100

NA

70.8%

NA

$20,964

$30,917

NA

47.5%

NA

23.3%

NA

Graham

$50,300

$80,900

NA

60.8%

NA

$18,455

$29,668

NA

60.8%

NA

0.1%

NA

Greenlee

$40,700

$62,700

NA

54.1%

NA

$27,491

$39,384

NA

43.3%

NA

10.8%

NA

La Paz

$56,800

$86,500

NA

52.3%

NA

$16,555

$25,839

NA

56.1%

NA

-3.8%

NA

Maricopa

$84,700

$129,200

$273,400

52.5%

111.6%

$30,797

$45,358

$52,521

47.3%

15.8%

5.3%

95.8%

Mohave

$74,900

$95,300

$191,400

27.2%

100.8%

$24,002

$31,521

$36,097

31.3%

14.5%

-4.1%

86.3%

Navajo

$51,500

$77,000

$88,000

49.5%

14.3%

$19,452

$28,569

$36,651

46.9%

28.3%

2.6%

-14.0%

Pima

$76,500

$114,600

$204,800

49.8%

78.7%

$25,401

$36,758

$42,984

44.7%

16.9%

5.1%

61.8%

Pinal

$53,400

$93,900

$207,500

75.8%

121.0%

$21,301

$35,856

$43,142

68.3%

20.3%

7.5%

100.7%

Santa Cruz

$71,500

$94,700

NA

32.4%

NA

$22,066

$29,710

NA

34.6%

NA

-2.2%

NA

Yavapai

$85,300

$138,000

$238,600

61.8%

72.9%

$22,060

$34,901

$40,649

58.2%

16.5%

3.6%

56.4%

Yuma

$63,700

$85,100

$139,800

33.6%

64.3%

$23,635

$32,182

$37,457

36.2%

16.4%

-2.6%

47.9%

State of
Arizona

$79,700

$121,300

$236,500

52.2%

95.0%

$27,540

$40,558

$47,265

47.3%

16.5%

4.9%

78.4%

NOTE 1: The American Community Survey data was used for the 2006 home value estimates and median household income numbers.
NOTE 2: The 2006 data from American Community Survey is in 2006 inflation-adjusted dollars.
* 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 2000-2006 periods.
										

Data Source: Arizona Department of Housing and U.S. Census Bureau - 1990 and 2000 censuses, plus the 2006 American Community Survey.

13

2008

Arizona’s Housing Market

. . . a glance.
Sources
Arizona Department of Housing
Arizona Association of REALTORS
Arizona Department of Commerce
ASU Polytechnic - Real Estate Studies
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:

Fred Karnas, Director
Arizona Department of Housing
(602) 771-1000
fredk@housingaz.com