Compared to a majority of United States housing markets, the level of affordability in the Phoenix market is dropping due to growing prices and increase rates.
Phoenix has a deep history of being known for low-priced homes, which has served as a major attraction to new residents and businesses. That is no longer the case as a recent HSH.com report showed the area has dropped down the list of most affordable places to live in the U.S.
Compared to this time last year, interest rates are up approximately 1 point, which adds to the monthly home costs. As a result, home buyers this year require an annual income of $56,231 to afford a median-priced home of $262,000 in October.
As has been the trend in recent years, home prices in the Valley continue to see a steady increase. Just last week, Trulia named Phoenix as a housing market to watch in 2019. Housing costs have risen 6 percent year over year during October.