Big Paychecks, Bigger Prices: Arizona’s Housing Reality Check

A new 🔗GOBankingRates study ranks Gilbert as the best city in America for making your paycheck go further, with Chandler close behind at number three. Yet, another report from Leave The Key paints a sobering statewide picture: the average Arizonan now needs over eight years to save enough for a down payment on a median-priced home.

📊 The takeaway? Arizona is becoming a tale of two realities — booming income pockets in the East Valley and mounting affordability challenges statewide. Even with strong wages in certain suburbs, the math for homeownership is tightening fast for the average earner.

☀️ East Valley: Where Paychecks Still Shine

Across much of the U.S., inflation continues to outpace wage growth — but Gilbert and Chandler are bucking that national trend.

According to GOBankingRates, which compared median income against cost of living, these East Valley standouts made the top three nationally for leftover income after expenses.

• Gilbert: Median income ≈ $121,000 | Cost of living ≈ $65,500 | ≈ $55,500 left over annually

• Chandler: Median income ≈ $103,000 | Cost of living ≈ $62,000 | ≈ $41,000 left over annually

That surplus has helped fuel a housing boom — luxury builds, strong school districts, and family-focused growth. In short: these communities are doing something right. But high earnings don’t tell the full story of Arizona’s housing puzzle.

🏠 Arizona’s Housing Affordability Crunch

While some Arizonans are thriving, others are facing an uphill climb toward homeownership.

A new Leave The Key study found that it now takes the average Arizonan eight years and four months to save enough for a 10% down payment on a median-priced home — currently around $411,200. That’s the fourth-longest saving period in the country, behind Hawaii, California, and Colorado.

Let that sink in: before the pandemic, the income needed to afford a median-priced home was about $72,000. Today, it’s roughly $122,000 — a 70% increase. Meanwhile, the average individual income in Arizona is only $56,293.

In other words, even as the East Valley celebrates prosperity, much of Arizona’s middle class is watching the dream of homeownership drift further away.

💡 What It Means for Homebuyers and the Market

This growing divide highlights a key reality in Arizona’s real estate landscape:

• High-income pockets (like Gilbert and Chandler) are sustaining demand and stabilizing prices.

• Middle-income households face longer savings timelines, smaller down payments, and tighter budgets.

• Relocation or alternative homeownership strategies — like smaller properties, down payment assistance, or co-borrowing — are becoming more common.

As Leave The Key’s Ben Wagner put it, this data shows “how drastically the dream of homeownership varies across America.” In Arizona, it’s not just about where you live — it’s about how your income stacks up against rapidly rising costs.

🐼Mama Bear’s Take

📉 Arizona’s economy remains strong, but the path to homeownership is narrowing. The East Valley may be a shining example of what’s possible when wages rise, but for most residents, affordability is slipping.

For mortgage pros like us, this means one thing: it’s time to help buyers get strategic — whether that’s exploring programs for low down payments, using temporary buydowns, or planning a long-term savings roadmap.

You can’t control the market, but you can control your game plan. Whether you’re earning in Gilbert or hustling in Glendale, let’s make sure your next move makes financial sense — today and for the long haul.

👉 DM me to start your homeownership strategy.

🔗 Sources

• GOBankingRates – 40 Top Cities Where Your Paycheck Goes the Furthest (2025)

• Phoenix New Times – Paychecks Go Further in One Phoenix Suburb Than Any U.S. City

• Phoenix New Times – How Long Do You Need to Save to Buy a Home in Arizona?

• Arizona Daily Independent – Arizonans Are Waiting Over 8 Years to Buy a Home

Questions?