You now need a six-figure salary to afford a starter home in Phoenix.
Phoenix, AZ, is a sunny, outdoorsy city home to renowned sports franchises, spectacular vistas, and plenty of golf courses. However, Phoenix isn’t just the heart of The Valley of the Sun; it’s also home to a booming real estate market that’s seen significant growth in recent years.
For many, buying a home in Phoenix is a dream come true, but it’s also important to know how it will impact your finances. From down payments to monthly mortgage payments, there’s a lot to understand before buying your first home
So whether you already live in The Valley of the Sun or are looking to relocate to the area, here’s a breakdown of the income you’ll need to purchase your first home in Phoenix.
Check out our original report for a detailed nationwide analysis.
How much income do you need to buy a starter home in Phoenix?
The median sale price of a starter home in Phoenix is $330,000. In order to afford this, first-time homebuyers in Phoenix should make $101,321 per year, up 6.6% from 2023. However, the median income in Phoenix is $89,521, meaning the typical resident often can’t afford a starter home.
As expected, starter homes in Phoenix are much more affordable than the average home (all price brackets combined). In order to afford any median-priced home in the area, you’ll need to make $121,368 (as of October 2023).
Nationwide, you need an income of $75,849 to afford a typical starter home, which costs an average of $240,000. The average U.S. household earns an estimated $84,072.
First-time homebuyers’ guide to the Phoenix housing market
Phoenix has been a popular migration destination for years among homebuyers looking for sunshine and affordability. But during the pandemic, the region saw an explosion of growth and popularity, which has hardly slowed down. In fact, the city has consistently been the top destination for relocating home buyers. This influx has boosted…