Arizona families carry more debt than the national average as housing costs and late payments raise affordability concerns ahead of the November governor’s race.
An analysis from Common Sense Institute Arizona estimates per-capita household debt reached about $74,000 in late 2025, up 129% since 2003. Among the 11 states tracked in the Federal Reserve data cited by researchers, only Texas recorded a larger increase.
Mortgage balances are the biggest driver. The report found Arizona’s per-capita mortgage debt was 22% above the U.S. average, while auto loan debt was 7% higher and credit card debt was 8% higher. Roughly three-quarters of the state’s long-term debt increase came from mortgages, underscoring the effect of housing costs on household finances.
Payment trouble is more pronounced. The amount per person 30 days past due was 36% above the national average, while the amount 90 days late was 78% higher. Arizona’s average credit score fell seven points in 2025 to 666, ranking 30th nationally. The institute’s Household Liquidity Resilience measure found residents were 23% less prepared than the average U.S. household for a credit crunch.
Recent inflation data offers a mixed picture. Phoenix-area prices rose 2.8% year over year in June, below the 3.5% national rate, but remained 33.4% above June 2019 levels. Researchers estimated the cumulative increase added $1,673 to a typical household’s monthly costs compared with 2019.
Affordability is central to the governor’s race. Democratic Gov. Katie Hobbs cites Arizona’s No. 2 economic-performance ranking from the American Legislative Exchange Council and state assistance programs. Republican Arizona Rep. Andy Biggs blames her administration for rising costs and proposes phasing out the state’s 2.5% income tax. The debt figures give voters another measure for judging those competing economic arguments.
