PHOENIX — Buying a home has always required sacrifice — but for families under 40, the math has gotten significantly harder over the past five decades.
In 1970, the inflation-adjusted income of a family under 40 was $63,000. The median home price at that time was $154,000 — roughly 2.5 times that income. Today, the median family under 40 earns just over $100,000, but the median home now costs over $350,000 — about 3.5 times their income.
That widening gap is reshaping how young families think about homeownership.
In 2024, 70% of renters under 40 said they would rather continue renting because they could not afford a down payment. The barrier to entry has grown alongside prices: in 2019, a family saving for a 3% down payment needed just over $17,000. Today, that figure is closer to $23,000.
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The challenge is not uniform across the country. Home price-to-income ratios vary widely by market. In Santa Barbara, a young family would need to spend nearly 10 times their income to buy a house. Even in Bakersfield — the most affordable market in California — the ratio is still nearly 6.
The picture is better here in the Valley, where homes cost about 4.5 times the median income for young families. The lowest ratios nationally are found in the Midwest and Appalachia.
Within the Valley, the disparities are stark. Young families are effectively priced out of Scottsdale and the Northeast Valley, where homes cost 8 times the median income. In the Southeast Valley, price-to-income ratios range from 4.4 in Mesa to nearly 6 in South Gilbert and Queen Creek.
The West Valley offers more options for young buyers. Surprise has the lowest price-to-income ratio in the Valley — young families there would need just over 4 times their income to afford a home.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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