The cost of housing in Arizona is growing at an unprecedented pace as the U.S. faces the highest levels of inflation in 40 years.
The U.S. Bureau of Labor Statistics (BLS) has released its latest Consumer Price Index (CPI) for April and an 8.3% inflation rate is the highest it's been in four decades. Housing costs are a main contributor, as they've risen at their fastest yearly pace in 31 years across the country--nearly 30% in Arizona. Poor economic conditions continue to cause a decline in the president's polling numbers.
On May 11, BLS released the CPI data for 12 months, ending with April. The data showed an 8.3% all items annual increase, the largest contributors being increases in the indexes for shelter, food, airline fares, and new vehicles. The index for shelter climbed another 0.5% during April, and 5.1% in the last 12 months. Food rose by 9.4% and energy by 30.3% in the last year.
According to CNBC News, in the last month, shelter costs, which comprise about one-third of the CPI, rose 5.1%--the fastest rate since 1991.
Marketwatch reports that food, shelter, and medical care account for about 55% of the typical family’s monthly budget, and inflation is accelerating in all three categories. The first quarter of 2022 has brought the fastest rise in shelter costs in 31 years, the fastest rise in food prices in 41 years, and medical-care prices are going up at the fastest pace since the pandemic hit.
The cost of gas on the other hand dipped slightly, but Marketwatch writer Rex Nutting warns that the cost of more important necessities remains high.
"Although the pace of consumer-price inflation cooled slightly in April, don’t think for a minute that America’s inflation problems are in the past," Nutting said. "Gasoline prices may have temporarily softened in April, but prices for the things that really count the most—shelter, food and medical care—are still blisteringly hot."
Arizona's consumer spending and political landscape are largely influenced by rising prices. Kevin McElwain, a Phoenix resident who works sourcing labor and materials for homebuilders, told CNBC that signs of housing cost hikes are everywhere. “Anything from framing, concrete, electrical – you name it. Prices have risen probably by at least 50%,” he said. McElwain added that inflation is on his mind this election year, adding that he'd "like to see it be addressed by the candidates that are running.”
Arizona Sen. Mark Kelly is up for re-election this fall.
According to Zillow's home value index, the typical value of an Arizona home is $424,544--a value that is seasonally adjusted and includes the middle price tier of homes. On average, Arizona home values have jumped 29.5% over the past year.
According to a CNN Poll conducted by SSRS, Americans have a very gloomy outlook on the economy--something that is reflective of the president. Surveys obtained from April 28 to May 1 showed that a majority of U.S. adults say Biden's policies have hurt the economy, and 8 in 10 say the government isn't doing enough to combat inflation. In the same survey, 23% rate economic conditions as even somewhat good, down from December's 37% and April 2021's 54%. CNN says the last time public perception of the economy was this poor in their polling was November 2011, when 18% of Americans labeled economic conditions 'good.'