Most workers can't afford homes in metro Phoenix. These cities are the most affordable

Single women and essential workers cannot afford to buy a median-priced home in most Arizona cities, according to a recent study.

Rapid population growth in the metro Phoenix area has driven up housing prices, making homeownership increasingly difficult for many — despite it being for many a key part of the so-called American dream.

The report, produced by the home improvement brand and TV show This Old House, analyzes homebuying affordability across U.S. cities and states by occupation and household type.

Another recent study from This Old House noted that Phoenix’s home construction industry is growing faster than the national average, likely due to the city’s rapid population increase. However, this growth has contributed to decreased housing affordability, disproportionately impacting single women and some essential workers, such as educators, in multiple Arizona cities.

The sun passes over the downtown Phoenix skyline during the beginning of the summer solstice on June 20, 2024.

Here's everything you need to know about what occupations and household types could most likely afford a median-priced house in Arizona cities.

Essential workers struggle to afford homes

Housing affordability also varies widely by occupation. Among essential workers, there is not a single city where homeownership costs fall within the recommended affordability range for educators, while health care professionals have the most affordable homeownership options.

Scottsdale consistently ranks as the least affordable Arizona city for most essential occupations. Tucson routinely ranked among the most affordable. Here’s how much of their income essential workers would need to spend on homeownership in Arizona cities:

• Community and service workers: Scottsdale 182%, Gilbert 121%, Tempe 118%, Chandler 118%, Glendale 115%, Peoria 110%, Mesa 106%, Phoenix 103%, Tucson 89%
• Educators: Scottsdale 174%, Gilbert 121%, Chandler 114%, Peoria 112%, Tempe 111%, Mesa 103%, Glendale 100%, Phoenix 98%, Tucson 84%
• Health care professionals: Scottsdale 96%, Tempe 75%, Gilbert 72%, Chandler 71%, Peoria 63%, Mesa 60%, Glendale 60%, Phoenix 58%, Tucson 53%
• Law enforcement: Scottsdale 107%, Tempe 104%, Glendale 100%, Chandler 85%, Gilbert 80%, Phoenix 77%, Tucson 72%, Mesa 70%, Peoria 63%
• Firefighters: Scottsdale 198%, Glendale 144%, Tempe 127%, Peoria 112%, Phoenix 112%, Gilbert 110%, Mesa 100%, Tucson 90%, Chandler 75%
• Lawyers: Peoria 86%, Scottsdale 77%, Glendale 76%, Gilbert 73%, Mesa 71%, Chandler 65%, Tucson 62%, Tempe 57%, Phoenix 53%

Single women face more financial burdens than single men

Income disparities play a major role in the financial strain of homeownership across different household types, according to This Old House analysts.

This Old House analyzed data from Zillow and the U.S. Census and found that the average annual cost of homeownership in the U.S. is $45,643. However, how this expense affects households varies widely by income:

• Married couples, with a median household income of $115,507 (U.S. Census), spend about 40% of their income on homeownership costs.
• Single men, earning a median income of $67,890, spend 67% of their income on these costs.
• Single women, with a median income of $49,821, face the greatest burden, needing to spend a staggering 92% of their income on homeownership — leaving little or no room for savings or emergencies.

In many cities, the total housing costs for single women exceed their annual earnings, making homeownership nearly impossible without additional income or financial assistance. This stark imbalance underscores how income inequality affects single earners, particularly women.

The study found no cities nationwide where homeownership costs fall below 30% of a single woman’s income. In Arizona, the share of income single women would need to spend to afford a median-priced home is especially high:

• Scottsdale: 147% of income
• Tempe: 109% of income
• Mesa: 105% of income
• Chandler: 105% of income
• Glendale: 105% of income
• Tucson: 104% of income
• Phoenix: 103% of income
• Peoria: 98% of income
• Gilbert: 88% of income

How to get help buying a home

Despite the rising costs, there are also homebuying assistance programs available that can help Arizonans secure loans, find affordable housing and navigate homeownership. 

Here's a list of resources for finding affordable places to live and navigating homeownership in Arizona from the U.S. Department of Housing and Urban Development website. You can find the full list on the website.

• Get help finding affordable places to live: Speak to a HUD Approved Housing Counselor for advice on your specific housing needs. Search online for a HUD Approved Housing Counselor near you or call 800-569-4287. You can also contact your local Public Housing Authority for information about public housing programs like Housing Choice Vouchers. Arizona's Public Housing Authority phone number is 602-771-1000, or you can call 800-955-2232 for help to find your local Public Housing Authority.
• Information about becoming a homeowner: Learn more about homebuying from HUD's website or the Consumer Financial Protection Bureau.
• Information about Federal Housing Administration (FHA) loans and programs: Visit the Federal Housing Administration Website. You can also call the Federal Housing Administration toll-free at 800-CALL-FHA (800-225-5342) or email the U.S. Department of Housing and Urban Development at [email protected].
• Information about HUD homes: Use the HUD Home Store to find HUD homes for sale.

This Old House experts also gave the following tips to improve homeownership chances:

• Consider smaller cities or urban areas.
• Carefully search for homebuyer assistance programs in your state.
• Shop around for mortgages; do not settle for the most available program.
• Capitalize on market opportunities.
• Seek the assistance of a trusted realtor advisor.
• Know your financial limits to avoid defaulting on your home.

How was this homeownership data determined?

To estimate the annual homeownership cost, This Old House utilized data on property taxes and income from the U.S. Census American Community Survey and home values for single-family residences from Zillow. For the overall annual cost, they considered the following:

• Annual property tax rates were from the U.S. Census.
• Annual mortgage costs was calculated based on home values from Zillow and assumed an 8% down payment and a 6.93% mortgage rate.
• Annual home maintenance was estimated as 4% of the home value to account for potential high maintenance or repair costs that homeowners may incur due to unforeseen circumstances.
• Annual homeowner’s insurance estimates were sourced from Quadrant.

Analysts then compared the annual homeownership cost to state and city-level incomes for married couples, single male householders, and single female householders to determine if their incomes could cover annual home costs. Lastly, they examined individual occupational income from the U.S. Census to learn if certain essential occupations could afford home costs in these cities.

This article originally appeared on Arizona Republic: Most workers can't afford homes in metro Phoenix. These cities are the most affordable