# Arizona

### Summary

Arizona state is facing an acute affordable housing crisis. For every 100 low-income renter households, there are 56 units available that are affordable to them. The median rent in the state has risen by 37% since 2010, while median household incomes have grown by 41%. Currently, the state is short over 93,048 low-income housing units, meaning rental units that are affordable to households earning ≤60% of AMI.

**Statistics**:
- 34.2% share of renter households
- 39.6% share of low-income households
- 45.0% share of rent-burdened households

### Renter population data

| Type                     | Households | % share  |
|--------------------------|------------|----------|
| Renter households        | 917,899    | 34.2%    |
| Homeowner households     | 1,765,658  | 65.8%    |
| Total households         | 2,683,557  | 100.0%   |

#### Low-income renter households

| Income Group             | Households | % share  |
|--------------------------|------------|----------|
| Extremely low-income (≤30% AMI) | 119,759    | 13.0%    |
| Very low-income (31-50% AMI)    | 93,901     | 10.2%    |
| Low-income (51-80% AMI)          | 149,895    | 16.3%    |
| All low-income (<80% AMI)        | 363,555    | 39.6%    |

### Rent-burdened households

| Burden Type        | Households | % share  |
|---------------------|------------|----------|
| Moderately rent-burdened | 216,571 | 23.6%    |
| 30.0–34.9%          | 79,296     | 8.6%     |
| 35.0–39.9%          | 58,411     | 6.4%     |
| 40.0-49.9%          | 78,864     | 8.6%     |
| Severely rent-burdened | 196,099   | 21.4%    |
| All rent-burdened households | 412,670 | 45.0%    |

### Affordable housing shortage

| Metric                                   | Amount ($) |
|------------------------------------------|------------|
| Median household income in 2010         | 32,792     |
| Median household income in 2021         | 46,290     |
| Median rent in 2010                     | 726        |
| Median rent in 2021                     | 994        |
| Supply (current stock)                  | 120,612    |
| Demand (total units needed)             | 213,660    |
| Total shortage                           | 93,048     |
| Supply/Demand ratio                      | 56.5%      |

### Housing news
#### Key Takeaways

1. **How Fed Rate Cuts Impact the Housing Market**: The Federal Reserve’s recent rate cuts will influence the housing market, reducing mortgage rates and potentially encouraging more home sales.
2. **Housing Market Predictions**: Economists predict the housing market won't recover until at least 2026.
3. **Homeless Populations**: In 2023, Arizona had about 14,237 homeless individuals, placing it among the states with the largest homeless populations.
4. **Widening Affordability Gap**: The overall housing affordability crisis in the U.S. is worsening, with only 63% of counties now affordable for median-income households.
5. **New Housing Initiatives**: Various organizations, including the Biden Administration, are announcing efforts to boost affordable housing development and reduce legal barriers.
6. **Diverse Trends in Home Buying**: There is an increasing rate of Black homeownership predicted, along with ongoing challenges like affordability and access to financing.