How Arizona compares among states with highest home ownership costs

While the cost of a new home continues to rise in Arizona, it's in the middle of the pack when it comes to comparing states with the highest home ownership costs.

That’s according to a recent study from Roofing Craftsmen, a company that specializes in residential roof replacement. The study identified the most expensive places to be a homeowner, revealing annual homeowner costs as a percentage of median income across each state.

Arizona ranked No. 28 with annual homeowner costs taking up 26.95% of the median income. The Grand Canyon State had a median household income of $69,056 with an average annual homeowner cost of $18,610. In comparison to other states, Arizona ranked in the top 50% for median household income (No. 20) and average annual home ownership costs (No. 25).

Significant financial investment goes into being a homeowner, from mortgage expenses and property taxes to home insurance and utility bills. With the recent threat of tariffs looming over the construction and real estate industries, homebuying costs have the potential to escalate.

The Business Journals recently reported about construction costs being an "X-factor" in real estate as tariffs impact the industry with 25% blanket tariffs on steel and aluminum imports, while some resources such as lumber are exempt.  

In February, home prices rose 2.9% as homebuying demand weakened, per the Home Price Insights that was released April 8 by Cotality (formerly CoreLogic), which collects and maintains comprehensive data on properties such as market trends. The report ranked Tucson as No. 5 as a market to watch as having a high risk of home price decline.

Homeownership on rise in East Valley
Despite being roughly in the middle of the pack nationally when it comes to home ownership costs, Arizona cities have seen a sharp rise in home ownership, specifically in the East Valley, according to analysis of U.S. Census Bureau data by PropertyShark, which found the national home ownership rate in 2024 held steady at 65.4%. Arizona, ranked No. 3, higher than the national rate at 67.7% owner-occupied among states for home ownership.

Based on the Roofing Craftmens study, Florida leads the nation as the most expensive state to be a homeowner. In the Sunshine State, residents spend 40.76% of the median state income on housing. The state has the highest average annual homeowner costs in the nation at $25,702, while the median income is $63.062.

Meanwhile, Utah reigns as the most affordable state for people to own a home, with just 20.65% of income needed for home ownership costs. In the Beehive State, residents have one of the highest incomes in the nation at $79,449, along with some of the lowest homeowner costs at $16,406.

The methodology identified the most expensive places to be a homeowner by analyzing annual homeowner costs — including property taxes, utility bills (such as energy, water, internet, natural gas, phone, and streaming), mortgage costs, and home insurance payments — as a percentage of median income in each state. Sources included the Tax Foundation, Statista and Mortgage News Daily.

Final Thoughts
While Arizona’s homeownership costs may not be among the highest in the nation, its position in the middle of the pack highlights the financial demands faced by many homeowners. As home prices continue to rise and additional factors, like tariffs, drive construction costs higher, it's crucial for those considering homeownership — especially newcomers — to factor in not only the price of the home but ongoing expenses. The growing homeownership rates in the East Valley signal a positive trend, but it’s important to remain aware of the broader economic factors at play.