Post-pandemic inflation has reshaped affordability, and Arizona is feeling it more than most states, ranking 7th least affordable state in the nation according to the Common Sense Institute (CSI).
Arizona Falling Behind
➤ Arizona dropped 12 spots in affordability rankings since 2019
➤ Ranks 7th least affordable nationally
➤ Households experienced the 12th largest decline in affordability
Costs are Rising Faster Than National Trends
➤ Arizona households spent $19,300 more in 2025 on essentials
➤ U.S. average increase: $15,400
➤ Arizona households now spend ~5% more of their income on necessities than the national average
Housing is a Major Driver
➤ General shelter costs increased 59%
➤ 4th fastest growth nationally
➤ Largest driver of affordability decline in Arizona and nationwide
Other Factors
➤ Groceries: 2nd fastest increase nationally
➤ Car insurance: 4th fastest increase
➤ Child care consumes ~38% of one full-time income
Income Growth Not Keeping Up
➤ Household income increased 33%, but still not enough to offset rising costs
➤ Households lost 3.8% of gross income to inflation since 2019
