ARIZONA – Governor Katie Hobbs announced December 17 that Arizona continues to see strong private-sector job growth, led by Natural Resources & Mining, Financial Activities, and Health Care.
While national housing and energy costs rose 4.0% and 0.2%, respectively, Arizona saw declines—housing down 0.1% and energy down 0.8%—helping keep the state’s inflation rate at 1.4%, less than half the national average of 2.9%, according to the governor’s office.
Hobbs said Arizona’s economy is growing.
“While we have more work to do, I’m thrilled to see the cost of energy and housing decline in Arizona, even while they spike nationally,” said Hobbs.
The release also noted that Arizona added 97,044 residents year over year, underscoring the state’s ongoing appeal to businesses and new residents.
Housing trends show mixed signals
Despite short-term declines in some measures, median home prices in Arizona remain high. Metro areas such as Phoenix saw modest year-over-year gains in August 2025, according to recent reports.
Alison Cook-Davis, director of research at ASU’s Morrison Institute for Public Policy, said rising housing costs continue to leave many families—even those with steady jobs—without a stable place to live.
In 2010, a typical Arizona home cost 2.8 times the state’s median homeowner income. By 2023, that ratio had risen to 4.6 times, Cook-Davis said.
Arizona renters have also seen monthly rents increase 23% between 2019 and 2024, while household incomes rose only 4% over the same period, adjusted for inflation.
While some short-term indicators show localized price softening, the overall trend for Arizona housing remains significantly higher than in previous years.
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