Arizona’s economic landscape is showing promising signs of growth and resilience in 2024. Despite some modest slowdowns in population growth and housing affordability challenges, the state’s economy continues to add jobs and witness income rises, outpacing national trends.
Here’s a closer look at why Arizona is on track for economic expansion this year:
1. Population Growth and Migration: While there has been a slight deceleration in population growth, Arizona still boasts a healthy rate of 1.6%, significantly outpacing the national average. Net migration remains a key driver of population gains for the state, particularly in areas like Phoenix and Tucson.
2. Job Market Strength: Preliminary data indicates that Arizona added 64,700 jobs in 2023, marking a 2.1% growth rate, slightly below the national average. However, Phoenix and Tucson saw notable job gains, reflecting the state’s diverse economic landscape. 
3. Income Growth and Inflation: Despite inflationary pressures, real incomes in Arizona have risen, with per capita personal income showing a 2.5% increase after adjusting for inflation. This indicates that Arizonans are experiencing improved economic conditions.
4. Housing Affordability Challenges: High house prices and increased mortgage rates have impacted housing affordability in the state. However, Arizona remains more affordable than major California markets, making it an attractive destination for migration. 
Looking ahead, Arizona’s economic outlook remains positive, with continued job growth and a resilient population. While challenges like housing affordability persist, the state’s diverse economy and competitive advantages position it for sustained growth in 2024 and beyond.
Source: AZ Big Media
Author: George W. Hammond, Ph.D., Director and Research Professor at the Economic and Business Research Center (EBRC).