Buying vs. Renting in Phoenix: Income Gap Keeps Growing

A recent analysis shows US homebuyers now need to earn ~$116K, 82% more than renters, to afford a median-priced home.
The affordability gap has quadrupled since 2021, driven by rising home prices and mortgage rates, while rents remain mostly flat.
The income gap is especially stark in cities like Phoenix, where homebuyers must earn noticeably more than renters.
In fact, the income needed to buy a median-priced home in Phoenix is 107% higher than what's required to rent.
While the upfront costs are steep, buying a home can offer lasting benefits, especially in dynamic markets like Phoenix.