Want to buy a typical Arizona home? It takes a six-figure salary

Homebuyers need an annual income of $110,271 to buy a median-priced home in Arizona.

That's up 65% from 2020, when it only took $66,712 to buy an Arizona house, according to personal finance research firm Bankrate.

Higher home prices, interest rates and insurance costs are why.

"Home values are near record highs," said Jeff Ostrowski, a housing market analyst for Bankrate. "If you want a house, you have little choice but to pay a high price."

Buyers need to have six-figure incomes to afford median-priced homes in 22 states.

Bankrate's analysis is based on a 2024 Arizona median home price of $433,000 calculated by Redfin. The state's median was $284,100 in 2020.

The average 30-year mortgage rate was 3.3% in March 2020 and is currently 6.8%, according to Freddie Mac.

Based on those prices and interest rates, the monthly mortgage payment on a median-priced Arizona house is now about $2,573. It was $1,302 in early 2020, according to Bankrate.

Reach the reporter at catherine.reagor@arizonarepublic.com or 602-444-8040. Follow her on X, formerly Twitter: @CatherineReagor.