Single women and essential workers in Arizona are struggling to afford homeownership as housing costs soar across the state. Rapid population growth, especially in the Phoenix metro area, has pushed home prices beyond the reach of many, disproportionately impacting these groups. Despite efforts to grow the housing market, the dream of homeownership remains elusive for these key workers and single women.

Houses Out of Reach

Recent studies indicate that single women and essential workers are struggling to afford median-priced homes in most Arizona cities. Rapid population growth in metro Phoenix has driven up housing prices, making homeownership increasingly out of reach for many. This challenge is seen as a significant barrier to achieving the so-called American Dream.

Essential Workers Impacted

The study, produced by the home improvement brand and TV show This Old House, evaluates homebuying affordability in U.S. cities and states, focusing on various occupations and household types. Despite Phoenix’s booming home construction industry, which is growing faster than the national average, housing affordability has worsened, impacting many essential workers like educators and single women.

Who Can Afford to Buy a Home in Arizona?

Housing affordability for essential workers varies significantly by occupation. Among these workers, educators face the most difficulty, with no city offering homeownership within their affordable range. Conversely, healthcare professionals have more affordable housing options.

Here’s how much of their income essential workers would need to spend on homeownership across 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%
• Healthcare 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%

Why Single Women Face a Homeownership Crisis

Income disparities significantly affect single women, making homeownership nearly impossible for many. On average, single women earn a median income of $49,821, which means they need to allocate an overwhelming 92% of their income to afford homeownership. This stark imbalance makes it difficult for single women to save or manage emergencies, highlighting a growing financial burden due to income inequality.

Financial Strain for Single Women

The financial strain for single women in Arizona is especially high. In several cities, single women would need to allocate more than their entire annual income to afford a median-priced home:

• 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

Income Comparison: Married Couples, Single Men, and Single Women

Income disparities between household types are also crucial. In the U.S., married couples with a median household income of $115,507 spend about 40% of their income on homeownership. Single men, earning a median income of $67,890, allocate 67% of their income to these costs. In contrast, single women, with an income of $49,821, face the greatest financial burden, spending 92% of their earnings on homeownership.

Growing Home Construction, Declining Affordability

While metro Phoenix’s home construction industry grows rapidly due to the city’s population boom, this has led to increased housing prices. Despite the growth of the housing market, homeownership is becoming less attainable for single women and essential workers, further emphasizing the widening gap between housing costs and household incomes.

How to Find Help with Homeownership in Arizona

Several homebuyer assistance programs are available in Arizona to help residents secure affordable housing and navigate the homeownership process. Some key resources include:

• HUD Approved Housing Counselors: Speak with a HUD-approved counselor to explore affordable housing options.
• Public Housing Authorities: Get information on public housing programs like Housing Choice Vouchers.
• Federal Housing Administration (FHA) Loans: FHA offers mortgage assistance programs to help with down payments and financing.
• HUD Home Store: Find available HUD homes for sale.

Additionally, experts recommend seeking smaller cities for more affordable options and utilizing homebuyer assistance programs, shopping for competitive mortgage rates, and consulting trusted realtors.

How Homeownership Costs Were Determined

The This Old House study estimated homeownership costs using U.S. Census data on property taxes, income, and home values from Zillow. It also incorporated a mortgage rate of 6.93% and assumed an 8% down payment. Maintenance costs were calculated as 4% of home values, and homeowners’ insurance estimates came from Quadrant. This comprehensive analysis was then compared with household incomes to assess affordability for various occupations across different Arizona cities.