In Arizona and around the nation, it was harder to afford a house in the fourth quarter of 2022. For Americans earning the median income, only 38.1 percent of new and existing homes qualified as affordable. Higher mortgage rates and construction costs were to blame, leading to drastic decreases in homebuying power compared to just a year prior. In Arizona, cities were the least affordable since 2012, with the share of such homes in Phoenix-Mesa-Chandler declining from 44.5 percent in the fourth quarter of 2021 to 18.3 percent in 2022. Other metro areas saw similar declines, with five seeing lower affordability than the rest of the nation.