House Affordability in Phoenix
Median home price: $425K · Property tax: 0.63% · Insurance: $1,800/yr
You can afford a home up to
$253,772
That's a 2-bedroom condo/townhome in Phoenix
Based on your $75,000 income with 20% down
Your $253,772 budget buys
Monthly payment breakdown
$1,750/mo
Home price
$253,772
Down payment
$50,754
Loan amount
$203,018
No PMI
Waived (20%+ down)
Estimates based on the 28/36 DTI guideline with Phoenix-specific property tax and insurance rates. Actual mortgage approval depends on credit score, employment history, and lender criteria.
Phoenix Housing Market Overview
Phoenix offers affordable housing relative to California metros, attracting remote workers and retirees. Low property taxes keep carrying costs manageable.
The median home price in Phoenix is $425,000, which is 3% above the national median of $412,000. Property taxes average 0.63% of assessed value, adding $223/month to housing costs.
Homeowners insurance averages $1,800/year ($150/month). Condos and townhomes typically carry HOA fees around $150/month.
What can you buy in Phoenix?
Typical price ranges by property type in Phoenix, AZ (2024/2025 estimates).
| Property type | Price range | Down payment (20%) |
|---|---|---|
| 2-bedroom condo/townhome | $200K – $320K | $40K – $64K |
| 3-bedroom home | $300K – $450K | $60K – $90K |
| 4-bedroom home | $420K – $620K | $84K – $124K |
| 5+ bedroom home | $580K – $900K | $116K – $180K |
Sources: Zillow, Redfin, Realtor.com (2024/2025 estimates). Prices vary by neighborhood.
Income needed to buy in Phoenix
Minimum annual income to afford each property type at 28% DTI, 20% down, 6.75% rate.
| Property type | Midpoint price | Income needed |
|---|---|---|
| 2-bedroom condo/townhome | $260K | $70,096/yr |
| 3-bedroom home | $375K | $98,257/yr |
| 4-bedroom home | $520K | $133,764/yr |
| 5+ bedroom home | $740K | $187,637/yr |
Green = achievable at Phoenix's median household income of $72,000.
Cost of living context
The median household income in Phoenix is $72,000, which is 4% below the national median of $75,000.
At the median income, a household can afford roughly $268K using the 28% DTI rule — which falls short of the $425K median. Many buyers need dual incomes, a larger down payment, or lower price points.
FAQ
Can I afford a house in Phoenix on a $100,000 salary?
At $100K with 20% down and 6.75% interest, you can afford roughly $382K in Phoenix using the 28% DTI rule. The median home price is $425K, so you may need to look at lower price points or increase your down payment.
What income do I need to buy a house in Phoenix?
To afford the median price of $425K with 20% down at 6.75%, you need approximately $110,501/year (28% DTI). The median household income in Phoenix is $72,000, which is below what is needed.
What are property taxes like in Phoenix?
The average property tax rate is 0.63%, or $2,678/year on a median-priced home. This is below the national average of 1.2%.
What does a 4-bedroom home cost in Phoenix?
A typical 4-bedroom home costs between $420K and $620K, with the midpoint around $520K.
Is Phoenix affordable compared to other cities?
Phoenix's median price of $425K is 3% above the national median of $412K. Median household income is $72,000, 4% below the national median.
Other cities
- San Francisco, CA — median $1.35M
- New York City, NY — median $780K
- Los Angeles, CA — median $950K
- Chicago, IL — median $340K
Related tools
- Arizona House Affordability — statewide data
- Arizona Paycheck Calculator — calculate your take-home pay
- House Affordability Calculator — compare all cities
- Compare Job Offers — factor in housing costs