To purchase a median-priced home in Phoenix, a combined annual income of about $110,000 is needed to keep monthly payment burdens manageable.

According to recent estimates from Zillow and Redfin, the median home price in the Phoenix metro area is around $435,000.

Although there has been a correction following the surge during the pandemic, prices remain significantly higher than in 2019.

Let's go through the calculations. Assuming a 20% down payment, the loan principal would be $348,000. With a fixed interest rate of 6.75% over 30 years, the monthly principal and interest payment would be approximately $2,257. Adding in the monthly property tax of about $218 (reflecting Arizona's property tax rate of around 0.6%) and an estimated monthly insurance cost of about $125, the total housing cost is estimated to be around $2,600 per month.

Applying the DTI 28% rule, the required monthly income would be about $9,284, which translates to an annual income of approximately $111,000. The median household income in Arizona and Maricopa County is reported to be around $80,000 according to census.gov, indicating that for median-income households, monthly income may fall slightly short of the necessary threshold.

It is clear that Phoenix remains relatively affordable compared to California, leading to a steady influx of Korean households relocating from LA or Orange County. However, relying solely on a single income can be burdensome, while dual-income households tend to find it more accessible.

Compared to nearby Tucson, home prices in Phoenix are nearly 30% higher. Areas with preferred school districts, such as Scottsdale and Chandler, are priced significantly above the median, while regions like Gilbert and Queen Creek, where many Korean families are settling, are found to be around or slightly above the median price.

For dual-income Korean families, combining incomes of around $55,000 each can meet the necessary threshold. It may also be worth considering strategies to prepare a down payment of over 20% or to wait for a decrease in interest rates. Recent Freddie Mac PMMS data shows a gradual decline in interest rates, indicating that refinancing opportunities should also be monitored.

In conclusion, Phoenix still appears to be a realistic option for Korean families looking to purchase their first home after leaving California. However, for households with monthly incomes below the low $9,000 range, it may be safer to increase the down payment percentage or consider slightly more affordable suburban areas.