What are the Barriers to Home Ownership in Arziona?

What if my generation is the last one with the privilege of saying, "I'll retire when my home is paid off?" This generation of newly minted adults might never even get the chance to buy a house, much less pay it off.

Lately, I've been reading a lot about how Millennial and Gen-Z young adults can't afford to buy a home, and that's assuming they can even find one to purchase. The Morrison Institute at Arizona State University (ASU) reports that Arizona home values have increased dramatically over the past decade.

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Where Does Arizona Stand For Home Ownership?

According to ASU's State of Housing report, home values rose about 66% between 2014 and 2025 after adjusting for inflation. This has far outpaced wage growth for many workers.

Purchasing a home is one of the most important investments anyone can make. It's more than a place to live; homeownership is an asset that can appreciate significantly in value.

That may be an unattainable dream for this generation because home prices are reaching record heights, and affordability plays a huge role for buyers.

READ MORE: Californians Moving to Arizona are in for a Rude Awakening

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Shortage of Homes to Buy in Arizona

According to the Common Sense Institute US, one of the major barriers to homeownership right now is simply the supply-and-demand imbalance.

The Institute estimates that Arizona is facing a housing shortage of roughly 56,000 homes, and that permitting for new home construction has slowed in recent years. Fewer homes available means higher prices and more competition among buyers.

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Arizona Cities With the Highest Home Prices

The typical home value in the United States was $360,999 last month, up 2.4% from the previous year. High mortgage rates have made monthly payments more expensive; the current 30-year fixed mortgage rate is 6.44%.

Although home prices have risen across the U.S., it's more expensive to live in some cities. Location, size, age, and condition of the building are all major factors in a home's value.

READ: Why So Many Arizonans Are Moving To Texas And California

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Where to Find the Most Costly Homes in Arizona

So where does Arizona stand? Stacker compiled a list of cities with the most expensive homes in Arizona using data from Zillow. Cities are ranked by the Zillow Home Values Index. The charts in this story were created automatically using Matplotlib.

Here are the metros with the most cities in the top 30 in Arizona:

#1. Phoenix-Mesa-Chandler: 16

#2. Flagstaff: 4

#3. Prescott Valley-Prescott: 3

#3. Tucson: 3

#5. Nogales: 2

#6. Payson: 1

#6. Show Low: 1