Journalists reporting on housing affordability are frequently quoting sources that reference median household income. Household income can be broken down into two categories, family and nonfamily households. The US Census defines a family household as two or more people living in a home and related by blood or marriage. 

     Nonfamily households are all others, including non-related people living as roommates or people living alone. Nonfamily household income is typically much lower than family income and is more suited for measuring the affordability of rental housing. Family household income is more suited for measuring the affordability of purchasing a home.

Household Incomes in Maricopa County: 

How This Impacts Lending

     Additionally, the lending industry considers 28% of gross income an affordable monthly payment for mortgage or rent. For a family household that’s roughly a $2,500-$3,000 payment. 

     At a mortgage rate holding steady around 6.25%, that payment supports homes priced between $350,000 and $500,000 in Maricopa County. That budget will support roughly a 1,500-1,800 square foot single family home, which will trend in the mid-$300s in the West Valley, and the mid-$400s in the Southeast Valley.

Incomes in Maricopa County Are Not Stagnant