Phoenix ranks among major US cities where residents are most 'house rich'
Phoenix is ranked No. 10 among the major U.S. cities that are the most "house rich," according to a study by All Star Homes.
Cities considered "house rich" are places where home ownership is dominant and homes are relatively affordable compared to the local median income.
Using data from the U.S. Census Bureau, Pennsylvania-based All Star Homes found that Phoenix has a 56.1% rate of owner-occupied housing.
According to the U.S. Census Bureau's most recent data — from 2017 to 2021 — the median home value of owner-occupied houses in Phoenix is $277,700.
The median home value is different from the median home sale price, which is around $440,000, according to real-time data from The Cromford Report.
The median household income is $64,927, which gave Phoenix a 4.28 home-value-to-income ratio on the study. Nationwide, that ratio is 3.33.
The report also looked at states where home ownership is dominant and homes are relatively affordable, compared to the median income.
To calculate the house rich scores, All Star Homes adjusted the home-value-to-income ratio by factoring in the rate of homes not occupied by their owners. That means those researchers multiplied the ratio by the non-owner occupied housing rate to account for the actual level of home ownership in each area.
The U.S. Census data shows metro Phoenix is the No. 2 destination in the U.S. for migration patterns for "high net worth" households, second only to South Florida, said J. Andrew Turley, president of Phoenix Valuations.
"I expect this ranking as 10th in the country to improve over the coming years as we continue to be a destination and haven for wealthy families and individuals, due to our pro-business environment; low taxes, both personal and business; incredible weather and great lifestyle choices," Turley said.
State toppings the ‘house rich’ ranks
West Virginia topped the nation as the most house-rich state in America. Following West Virginia were Iowa, Michigan, Indiana and Mississippi.
On the other hand, California topped the list of states that are the least house rich. Following California in that category were Hawaii, New York, Nevada and Oregon.
Looking specifically at major cities, El Paso, Texas, claimed the spot for the most house-rich major city, followed by Oklahoma City, Indianapolis and Fort Worth and San Antonio in Texas.
Nationwide, Davie, North Carolina, was named the most house-rich city overall.
Following close behind was Buckeye, Arizona, a rapidly growing city in the West Valley.
Goodyear made No. 19 on that list, Surprise was No. 29, Gilbert was No. 39 and Peoria was No. 45.