Economic Hardship Across U.S. Counties
Economic Hardship (EH) Rankings — Arizona Counties
All Arizona Counties vs. U.S. Extremes
Economic Hardship Index: All Arizona Census Tracts (2023)
Decomposing the Economic Hardship Index
Economic Hardship Clusters (LISA)
Within-County Variation in Economic Hardship (EH) — All 15 Arizona Counties

High Economic Hardship Clusters (HH) — Hot Spot Tracts Statewide:

267

Low Economic Hardship Clusters (LL) — Cold Spot Tracts Statewide:

269

Economic Hardship Mobility: Maricopa Tracts (2013 → 2023)
Neighborhood Hardship Trajectories (2013–2019)

Tracts Improved (2013→2023)

53.7%

Tracts Worsened (2013→2023)

31.1%

Persistently High Hardship (2013–2023)

17.8%

Emerging Hot Spots (2013–2023)

2.7%

🔴 Areas of Persistent Concern
158 Persistent Hot Spot Tracts (17.8% of Maricopa tracts)

These census tracts had statistically significant high-hardship clustering in both 2013 and 2019. The pattern is not random: a Global Moran’s I of 0.684 confirms that hardship is spatially concentrated, not scattered. Tracts in this category share infrastructure deficits, limited employment access, and concentrated poverty that reinforce one another across neighborhood boundaries.

Implication: Individual-level interventions alone are unlikely to move the needle. Place-based, multi-sector investment is required.

Persistent Geographic Concern: Spatially, the core concentration of persistent hot spots remains consistent across both analyses in the area of central Phoenix, southeast Glendale, and west Mesa.

🟡 Early Warning Signals
24 Emerging Hot Spot Tracts (2.7% of Maricopa tracts)

These tracts were not significant hardship clusters in 2013 but became statistically significant by 2019, representing the spatial expansion of hardship beyond historically distressed cores. This is an early warning signal that hardship is spreading, not contained.

Displacement paradox: Some “improving” tracts nearby may be gentrifying, pushing lower-income households outward into these emerging clusters. Declining hardship scores do not necessarily mean existing residents are better off.

Emerging hot spots: Emerging hot spots and hot spot outliers north of the Mesa cluster suggest that this cluster may be growing and that displacement may be taking place. While research and local context will be key in identifying why this is taking place, renter burden and lack of access to housing is one possibility as to why we are seeing the emergence of these hot spots.

🟢 Signs of Progress Read With Caution
53.7% of Maricopa tracts showed EHI improvement (2013→2023)

The majority of tracts improved over the decade-long window. However, aggregate improvement masks significant variation: 31.1% of tracts worsened over the same period. The data cannot distinguish genuine economic uplift from population turnover: a tract with a declining hardship index may simply have replaced lower-income residents with higher-income newcomers.

Data limitation: Ground-truth verification through community engagement and displacement tracking is essential because observed “improvements” in places like South Phoenix and Mesa may reflect uneven gains driven by institutional interventions rather than true increases in resident well-being. Without directly assessing whether existing residents are benefiting—or being displaced—these spatial patterns risk misrepresenting progress and obscuring whether capabilities are genuinely expanding or simply shifting across populations.

Recommendation 1

Target: 158 Persistent Hot Spot tracts (17.8% of all Maricopa tracts): spatially concentrated, entrenched hardship confirmed by a Global Moran’s I of 0.684.

RECOMMENDATION: The area known locally as “ South Phoenix” should be prioritized for place-based intervention, as multiple tracts in this area fall within persistent hot spot clusters. This indicates deeply entrenched and spatially concentrated disadvantage that has remained stable over time. To address this, the City of Phoenix Office of Community and Economic Development should expand its Transit-Oriented Development (TOD) strategy along the light rail corridor by implementing a community land trust (CLT) model to preserve long-term housing affordability and prevent displacement. This intervention would ensure that infrastructure investments translate into sustained improvements in resident capabilities rather than displacement-driven change. Rent stabilization or policies that support renter transition to home-ownership would be a way to remove rental burdens on residents who have capabilities to buy into the current market.

Recommendation 2

Target: 24 Emerging Hot Spot tracts (2.7% of all Maricopa tracts), new high-hardship clusters not present in 2013, signaling spatial expansion.

RECOMMENDATION: The growing hardship cluster along the I 60 freeway, known locally as West Mesa, should be prioritized for early intervention, as the analysis identified notable emerging hot spots along its northern boarders. It is possible that Mesa is exhibiting a displacement paradox, where revitalization efforts such as light rail expansion and place-based reinvestment may improve neighborhood conditions while simultaneously increasing housing costs and displacing vulnerable residents.

To address both risks, the City of Mesa Office of Economic Development, in coordination with the Mesa Urban Transformation Office, should implement a real-time neighborhood change monitoring system that tracks rent increases, property turnover, and demographic shifts alongside hardship indicators. This system should be paired with early-stage anti-displacement tools such as rental assistance programs, preservation of naturally occurring affordable housing (NOAH), and right-to-return policies. The end goal should be to ensure intervention occurs before hardship becomes entrenched and before existing residents are pushed out.

Recommendation 3

Evidence base: 53.7% of tracts improved (2013→2023) but 31.1% worsened; Moran’s I = 0.684 confirms strong spatial clustering persists.

RECOMMENDATION: Maricopa County has been one of the fastest-growing large counties in the U.S. The population grew from approximately 3.8 million in 2010 to over 4.7 million in 2026—an increase of roughly 900,000 people. It is critical that Maricopa County establish a cross-sector coordination framework modeled after the Urban Institute’s Upward Mobility Framework to monitor essential indicators of social mobility and ensure that population growth is matched by growth in opportunity.

Through the adoption of the Urban Institute’s Upward Mobility Framework and the integration of spatial trajectory data, Maricopa County can identify early warning signals of emerging hot spots or displacement pressures and intervene proactively. This approach would enable more targeted, cost-efficient policy responses that both prevent the spread of concentrated disadvantage and ensure that observed improvements translate into sustained gains for existing residents.

🔬 Index Sensitivity Reflection

The baseline EHI consists of 3 measures: Poverty + Unemployment + Income (inv.)

Current index: 7-component EHI: Poverty + Unemployment + Income (inv.) + Renter Burden + Low Ed. Attainment + Food Insecurity (SNAP) + Transp. Disadvantage

After adding your extra component(s), answer the following (minimum 2 sentences each):

Q1: What changed spatially?
Compare Hot Spot tract counts and cluster map patterns between your expanded index and the 3-component baseline. Did adding Renter Burden + Low Ed. Attainment + Food Insecurity (SNAP) + Transp. Disadvantage shift which tracts or corridors are flagged?

After adding the additional variables to create the 7-variable index, the overall summary statistics remain relatively stable, but important spatial and distributional changes emerge. The share of persistently high hardship (HH) tracts increases slightly from 17.0% to 17.8%, while emerging hot spots remain nearly unchanged (2.9% to 2.7%). However, the percentage of tracts that worsened increases (29.4% to 31.1%), and the share of tracts that improved drops by roughly 10 percentage points (63.9% to 53.7%). Shift in geographic location of hot spot outliers from the southern parts of the county to the northeast suggests that the expanded index captures additional dimensions of hardship in surrounding areas that are predominately low hardship.

Q2: What stayed the same?
Which Persistent Hot Spot areas appear robustly across index specifications? What does consistency across different index compositions tell us about the reliability of hardship diagnoses in those tracts?

Spatially, the core concentration of persistent hot spots remains consistent across both analyses, particularly in central Phoenix, southeast Glendale, and west Mesa. However, there are notable boundary shifts between the two indices: In northwest Mesa, hot spot areas expand, while in southeast Phoenix we see boundaries receding, indicating some localized changes in hardship intensity. The persistence of high-high (HH) hot spots across both the 3-variable and 7-variable indices indicates that hardship in these neighborhoods is not driven by a single factor, but rather by long-term, place-based disadvantages. The fact that these areas remain classified as hot spots despite changes in measurement also suggests that they are systematically disadvantaged across multiple domains, such as income, housing, and access to resources.

Q3: Policy implications of index choice
If a policymaker targeted place-based investments using the baseline index versus your expanded index, would resource allocation differ? Name specific tracts or geographic corridors and argue which composition better captures the full burden of economic hardship for policy purposes.

Under the 3-variable index, hardship appears more spatially diffuse, with clusters extending into both urban and beyond to peripheral areas. This would likely support a broader, less targeted policy approach, distributing resources across a wider geography, including some rural and suburban tracts that appear vulnerable under a simpler measure. In contrast, the 7-variable index produces a slightly more concentrated geography of hardship within the urban core. Persistent hot spots remain anchored in central Phoenix, southern Glendale, and parts of Mesa, but the expanded index tightens these clusters while also identifying emerging hot spots and hot spot outliers around the Mesa cluster, suggesting that this cluster may be growing. Resource targeting under the should be place-based, neighborhood or perhaps city level strategy, focusing investments specifically in the high-need areas of central/south phoenix, east Glendale, and northwest Mesa.