Housing affordability is one of the biggest questions I hear from buyers in Phoenix, Gilbert, Mesa, Chandler, Queen Creek and the surrounding areas. Even though we have more inventory on the market than we have seen in almost a decade, the cost of owning a home is still a challenge for many Arizona families.
From mortgage payments to utilities, the share of income going toward housing has changed a lot in the past few years. As a top Realtor in Phoenix, I want to break down what affordability really looks like in 2026 and how it impacts buyers at different income levels.
How Much of Household Income Is Going Toward Housing?
According to recent Arizona housing data, the average homeowner now spends 28 to 35 percent of their monthly income on housing costs. This includes the mortgage payment, insurance, HOA dues if applicable, and utilities. For many households with moderate incomes, this percentage can climb even higher.
Utilities are a big factor, especially in the summer. If you want to understand how specific costs like pools affect monthly bills, I recommend reading my post on The True Cost of a Pool in Arizona. It breaks down electricity use and long term maintenance so buyers know what to expect.
Why Middle Income Buyers Feel the Most Pressure
Middle income buyers in Arizona fall into a tricky zone. They usually make too much to qualify for certain down payment assistance programs but not enough to keep up with rising home prices in popular areas like Queen Creek, Chandler, Gilbert, and Scottsdale.
Even with more inventory available, competition for well priced homes is still strong because many families want the same features like modern upgrades, good schools, and manageable commutes. If you are comparing cities in the East Valley, my blog about Commuting to Phoenix and the Best East Valley Cities may help you decide where your budget fits best.
How Lower Income Buyers Are Impacted
Lower income buyers face the biggest affordability challenges. Rising rents make it hard to save for a down payment, and even entry level homes often attract multiple offers. Programs that offer down payment help can be useful, but many buyers still struggle with monthly costs once utilities and insurance are added in.
This is especially true in the most in demand areas of Phoenix and the East Valley. In some cases, expanding your search to developing areas like San Tan Valley, Florence, Maricopa, or Buckeye can make a big difference.
Why Utilities Matter More Than Ever
One part of affordability that many buyers overlook is utilities. Between electricity, water, HOA dues, and optional costs like pool maintenance, monthly expenses can add up quickly.
Energy efficient upgrades also matter. Many new construction homes offer better insulation, efficient HVAC systems, and smart home features that can reduce long term costs. You can read more about the pros and cons in my blog about New Construction Benefits for Arizona Buyers.
What This Means for Buyers in 2026
Even with more homes on the market, affordability continues to shape buyer decisions across Arizona. Middle and lower income families are adjusting their search areas, home size preferences, and commute expectations in order to stay within comfortable payment ranges.
The good news is that buyers have more options today than they did a few years ago. With inventory rising and interest rate strategies improving, many families are finding ways to purchase a home without feeling financially overwhelmed.
If you are planning to buy in 2026, I always recommend taking your full monthly budget into account, not just the mortgage payment.
Final Thoughts from Dawn
Affordability is personal, and no two families have the same budget or priorities. My job is to help you understand the full picture so you can choose a home that feels right and fits your long term goals.
Whether you are comparing neighborhoods, weighing monthly costs, or deciding between resale and new construction, I am here to guide you every step of the way. If you’re looking for the best real estate agent in Queen Creek or the Phoenix area, I’d love to connect. Please reach out to me!