Delivering on Voter Priorities for Housing Affordability Is Key to Arizona’s Economic Future

Arizonans have made housing affordability one of their top priorities, and the economic case for action is clear. According to new analysis from Unlocking Potential: Turn Arizona’s Priorities into Economic Gains, released by Center for the Future of Arizona (CFA), tackling the state’s housing affordability crisis could unlock billions, support jobs, reduce strain on social services, and strengthen the foundations of household stability, workforce participation, and long-term growth.

Conducted by Rounds Consulting Group, the study findings highlight housing as essential economic infrastructure, just as critical to Arizona’s long-term economic potential as its roads, schools, and energy systems. The analysis looks at rising costs alongside challenges — from workforce shortages to reduced consumer spending and greater reliance on public assistance — and points to the shared public will for change.

The new report examines priorities from CFA’s Arizona Voters’ Agenda research, which shows broad, bipartisan demand for action. More than 80% of Arizona voters across political affiliations and age groups believe rental and home prices are too high, call for more affordable options in their own communities, and say government should do more to address affordability and housing insecurity.

“Arizonans understand that when housing becomes unaffordable, it affects everything — family stability, local business vitality, the state’s overall economic momentum, and our ability to plan for the future,” said Dr. Sybil Francis, Chair, President & CEO of CFA. “This analysis helps quantify what voters already believe: addressing housing affordability is a smart economic strategy. It supports families, employers, and helps sustain the kind of long-term growth that benefits everyone.”

For years, CFA’s survey research has also revealed another consistent theme: Arizonans want leaders to think and act for the long term, not react to short-term pressures. Unlocking Potential brings those priorities together, demonstrating that smarter housing solutions do not just improve lives; they strengthen Arizona’s economic infrastructure.

Today, about 823,000 Arizona households spend nearly one-third or more of their income on housing, a level that signals financial stress. This affordability gap reduces consumer spending, limits workforce participation, and drives increased demand for public assistance and emergency services.

Research in the report shows that expanding affordable housing can reduce healthcare costs for Medicaid recipients and lower emergency department visits, providing tangible benefits that relieve pressure on public systems and taxpayers alike. If Arizona made progress on affordability, it would not only improve family well-being but also reduce fiscal strain on the state’s safety net programs — allowing leaders to reinvest resources into other critical priorities.

Key Housing Affordability Findings at a Glance

The analysis reveals the broad and lasting economic benefits:

• $13 billion in total annual economic output: The cumulative gain from increased spending power and productivity across industries statewide.
• 126,000 jobs supported: Improved affordability strengthens communities and helps employers attract and retain workers.
• $8,400 in household savings per year: Reduced housing costs free up income for spending on essentials and local goods and services like food, healthcare, and transportation, fueling small business activity.
• $6.9 billion in direct annual output and $760 million in new tax revenues: The measurable return that benefits state and local governments.
• Long-term economic stability: Lower cost burdens reduce reliance on housing subsidies, food aid, and emergency healthcare — helping prevent homelessness and housing insecurity, and leading to more resilient communities statewide.

“Stable, attainable housing is a foundation for a strong economy,” said Jim Rounds, President of Rounds Consulting Group. “Housing that is affordable supports workforce participation, improves productivity, and generates measurable returns for communities and employers. When families can live where they work, everyone benefits, and that’s the kind of long-term value leaders need to consider as they plan for Arizona’s future.”

As one of the fastest-growing states in the nation, Arizona’s rapid growth has brought new pressures — rising costs, limited inventory, and a widening gap between wages and housing prices. While population growth has powered the economy, it has also created structural challenges that threaten affordability and sustainability.

“The question for Arizona isn’t whether we grow, but how,” Dr. Francis added. “Voters want long-term planning to support that growth, but they’re concerned. Can we sustain it if the people who make our communities run — teachers, healthcare workers, first responders, high-skilled trades workers — can’t afford to live here? We want to give leaders the tools to respond with data-driven solutions. They have a real opportunity to take what voters already agree on and turn it into smart, long-term actions that strengthen Arizona for decades to come.”

The Unlocking Potential report applies Arizona-specific data on housing costs, wages, and output, combined with nationally recognized economic modeling. It estimates the potential scale of benefits Arizona could realize without prescribing specific policy solutions, providing a foundation for leaders to evaluate long-term decisions and investments.

The report also includes in-depth analyses of voter-backed priorities in childcare, education, and transportation — showing how these interconnected systems together form the infrastructure of a strong economy and thriving communities. CFA is releasing a series of issue-specific briefs and will engage leaders statewide to explore how these findings can inform strategic planning, smarter investments, and cross-sector collaboration.

All findings, methodology, and resources are available at arizonafuture.org/UnlockPotential.