Median Income, Rising Costs: Why Arizona’s Working Families Are Being Left Behind
In 2023, the median U.S. household income was $77,700. In Arizona? $77,300. That number, nearly identical to the national median, looks stable at first glance. But beneath that number is a troubling truth: wages aren’t keeping pace with the cost of housing. And for policymakers, ignoring that gap has real consequences.
Let’s break it down with the latest data — and why it matters now more than ever for Arizona’s public policy priorities.
📊 How Much Do U.S. Households Make?
The median household income includes everything — wages, investments, public assistance, and rental income — for everyone over age 15 living under the same roof. According to the latest data:
$77,700 was the national median in 2023 (down $100 after adjusting for inflation).
39% of households made over $100K.
32.3% made under $50K.
Massachusetts topped the list with $99,900; Mississippi came in lowest at $54,200. In Washington, D.C., the median household income was $108,200.
In Arizona:
Median household income = $77,300
Source: USAFacts
🏠 Housing Costs in Arizona: A Dangerous Climb
Housing costs have surged across the state, and median home prices now vastly outpace income — especially in high-growth metro areas:
An affordable housing market traditionally sits near a 3.0x price-to-income ratio. Arizona counties are exceeding that threshold by 60–160%, pushing homeownership further out of reach — even for middle-income earners.
🚨 Working But Still Struggling
This gap hits hardest among Arizona’s working class — the unsubsidized middle who earn too much to qualify for assistance but too little to afford stable housing. These are the teachers, EMTs, tradespeople, and caregivers who keep communities functional yet remain one emergency away from financial collapse.
They aren’t technically in “poverty,” but they’re on the edge.
🧭 Policy Reflections: A Call to Action
For anyone in public policy — legislators, analysts, agency staff, and local officials — this is not just economic trivia. These are foundational metrics that affect:
Affordable housing development
Education and workforce policies
Transportation and zoning decisions
Tax credits, subsidies, and cost-of-living adjustments
Failing to connect income to local cost pressures means missing the mark entirely when writing fiscal policy.
🏛️ Policy Recommendations from EPIC
Here are four targeted fixes Arizona lawmakers should consider in the 2026 session:
1️⃣ Create a Regional Affordability Index
Use localized housing-cost benchmarks in legislation, rather than relying on outdated statewide poverty formulas.
2️⃣ Expand the Arizona Working Families Tax Credit
Tie it to housing burdens and inflation metrics, not just income levels. Make it fully refundable.
3️⃣ Reward Cities That Build Housing
Design a competitive grant for cities that streamline zoning and approve new affordable housing units.
4️⃣ Establish a Wage Floor for Public Contractors
Mandate a base wage indexed to county-level housing costs for all state-contracted positions.
🔎 A Final Note for Policymakers
If your fiscal model says a family of four earning $60,000 is “doing fine,” but they’re paying $2,100/month in rent and skipping medical appointments due to cost — your model is broken.
Policy grounded in outdated poverty lines and static income charts will fail to serve the people most at risk: Arizona’s unsubsidized, unassisted, and overburdened working families.
📬 Let’s Talk Policy That Works
Want to collaborate on policy solutions rooted in data and tailored for real impact?
📩 Reach out to us at epicpolicygroup.com or follow along here on Substack.
EPIC Policy Group
We don’t write policy for headlines. We write it for impact.