While many Americans are feeling the squeeze of rising prices nationwide, Arizona residents are catching a break, according to new economic data highlighted by Governor Katie Hobbs (D-AZ) this week.
The numbers tell a story of growth. Arizona ranked 8th in the nation for private-sector job growth and saw housing and energy costs actually decline, while the rest of the country saw them climb. However, most importantly for everyday Arizonans, the state's inflation rate came in at just 1.4%, below the national average of 2.9%.
"Arizona's economy is growing," Governor Hobbs declared. "Our leading position in private sector job growth shows that when we invest in talent and infrastructure, cut red tape and unleash Arizona's dynamic and innovative economy, we can continue to thrive."
Arizona's economic performance stands out from national trends. Housing costs increased 4.0% nationwide in August, but Arizona saw a slight decrease of 0.1%.
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The state also saw energy costs drop by 0.8%, while the rest of the nation saw a 0.2% increase.
Three main sectors are fueling Arizona's job market growth. The state claimed the #1 spot nationally in Natural Resources & Mining, posting an impressive 8.1% job growth. Health Care and Social Assistance ranked #9 in the country with solid 4.4% growth, while Financial Activities also landed at #9 nationally with 2.0% expansion.
The economic growth is attracting new residents. Arizona added 97,044 people over the past year, according to the Office of Economic Opportunity.
However, not everyone agrees with the governor's positive assessment. A 2025 study on migration patterns found that Arizona has the sixth-highest rate of out-migration, with rising housing costs and inventory shortages cited as major factors.
Despite the numbers, Governor Hobbs emphasized there's still work to do. "I will keep working to bring down the cost of living, build and attract more businesses, and create jobs," she said.
Arizona's inflation rate of 1.4% came in significantly below the national average of 2.9%, with notable decreases in housing and energy costs offsetting increases in food and transportation.
