Arizona

Arizona’s cost of living is about 1% above the national average, with a median home value of $358,900 (nominal) and median rent of $1,431 per month. Home prices have risen 68% over the five years to 2023. The state’s unemployment rate averaged 3.7% in 2023, and median household income is $76,872.

Migration Overview (2022–2023 Filing Years)

Between the 2022 and 2023 filing years, Arizona saw a net gain of 16,853 tax-filing households and 26,663 individuals, representing a net inflow of 3.6 people per 1,000 residents (population: 7,431,344). The state gained $2.7 billion in associated adjusted gross income (AGI, nominal dollars).

• Net households: +16,853 tax returns
• Net people: +26,663 exemptions
• Net income (AGI): +$2.7B nominal dollars

Income Flow

• Moved in: $10.8B AGI
• Moved out: $8B AGI
• Net gain: +$2.7B AGI (nominal)

Top Origin States (Inbound Migration)

• California: 28,402 households, $2.5B AGI
• Texas: 8,463 households, $711M AGI
• Washington: 8,011 households, $899.2M AGI
• Colorado: 6,012 households, $584.5M AGI
• Illinois: 5,528 households, $624.3M AGI

Top Destination States (Outbound Migration)

• California: 16,283 households, $1.2B AGI
• Texas: 9,966 households, $800.3M AGI
• Washington: 5,803 households, $514.4M AGI
• Colorado: 5,683 households, $466.7M AGI
• Florida: 5,096 households, $482.1M AGI

Two-Way Migration Churn

The largest two-way exchanges of filing households (2022–2023):

• California: 28,402 in, 16,283 out; Net: +12,119 households, +$1.3B AGI
• Texas: 8,463 in, 9,966 out; Net: -1,503 households, -$89.3M AGI
• Washington: 8,011 in, 5,803 out; Net: +2,208 households, +$384.8M AGI
• Colorado: 6,012 in, 5,683 out; Net: +329 households, +$117.8M AGI
• Florida: 4,682 in, 5,096 out; Net: -414 households, -$97.7M AGI

Net Migration by Year (2012–2023)

Cumulative net migration over the decade: +$33.4B AGI, +533,230 people.

• 2023: +$2.7B AGI, +26,663 people
• 2022: +$3.7B AGI, +36,924 people
• 2021: +$4.4B AGI, +57,254 people
• 2020: +$4.8B AGI, +80,652 people
• 2019: +$3.7B AGI, +66,714 people

Migration in Context

Arizona’s net migration rate for 2022–2023 was +3.6 people per 1,000 residents (population: 7,452,073). This equates to a net income gain of $365 per resident ($2.7B total).

• Population (2023): 7,452,073
• Net migration rate: +3.6 per 1,000 residents

Components of Population Change (2023)

• Births: +78,678
• Deaths: 70,826
• Net domestic migration: +34,804
• Net international migration: +39,747
• Total change: +82,008

Income and Cost of Living

Arizona’s cost of living is 1% above the national average. Income per person is $63,032 (10% below the U.S. average), but adjusted for local prices, it buys the equivalent of $62,568 (11% below the U.S. average).

• Price level: 100.7 (100 = U.S. average)
• Income per person: $63,032 (nominal)
• Adjusted purchasing power: $62,568

Cost Breakdown by Category

• Housing & rents: 108.6 (8.6% above U.S. average)
• Goods: 97.9 (2.1% below U.S. average)
• Utilities: 83.3 (16.7% below U.S. average)
• Other services: 101.2 (1.2% above U.S. average)

Demographics

• Median age: 38.8 years
• Median household income: $76,872 (2% below U.S. median)
• College degree (adults 25+): 33%
• Poverty rate: 12.8%
• Average commute: 25 minutes
• Broadband at home: 90% of households

• Race/ethnicity (share of residents):
• White: 53%
• Hispanic: 31%
• Black: 4%
• Asian: 3%
• Other: 8%

Housing

• Median home value: $358,900 (18% above U.S. median)
• Median rent: $1,431 (6% above U.S. median)
• Homeownership rate: 67%
• Home-price appreciation (past year): +2.1%
• Home-price appreciation (past 5 years): +68%
• New housing units authorized (2023): 58,433 (59% single-family, 41% multifamily)

Local Economy and Risk

• Unemployment rate (2023): 3.7%
• Labor force: 3,681,896 (3,545,673 employed)
• Disaster declarations (2023): 1 major federal (most common: severe storm)

Net Migration by Income Bracket (2022–2023)

• $1–$10k: +931 households, +$5.4M AGI
• $10k–$25k: +2,973 households, +$51.5M AGI
• $25k–$50k: +3,617 households, +$134M AGI
• $50k–$75k: +2,092 households, +$128.9M AGI
• $75k–$100k: +1,123 households, +$97.4M AGI
• $100k–$200k: +2,730 households, +$398.4M AGI