“Metropolitan Phoenix’s meteoric rise in home prices could come at a high cost. A nearly 50 percent run-up in housing costs during the past year has pushed the area to an economic tipping point. The Valley relies on low home prices to grow, and the recent jump in prices could send buyers and businesses to cheaper markets,” reports The Arizona Republic.

The typical metro Phoenix home is now selling for $263,000, which is $40,000 more than the national median home price. Valley home prices were always below national averages before this year. Firms like Motorola and USAA moved here because housing costs were low. People have flocked to Phoenix since the 1950s because they could find work and buy homes.

“But now, families with the Valley’s median household income don’t earn enough to buy the average home.”