Phoenix, Arizona, February 4, 2026

Arizona’s housing market is experiencing a significant surge, particularly in the Phoenix metropolitan area, driven by economic growth and population influx. Notable cities like Sedona and Catalina Foothills have reported remarkable home price increases. The state’s favorable job market and living conditions continue to attract new residents, making it a prime location for real estate investment. Understanding the dynamics of this evolving market is essential for local businesses and entrepreneurs.

Phoenix

Arizona’s Housing Market: Where Home Prices Are Soaring

Arizona’s housing market continues to demonstrate robust activity and significant growth, particularly within and around the dynamic Phoenix metropolitan area. This ongoing expansion is a testament to the state’s enduring appeal, driven by a thriving job market, entrepreneurial innovation, and a steady influx of new residents seeking opportunity and a high quality of life. Understanding the various facets of this growth is crucial for anyone engaged with Phoenix AZ business and the broader Arizona AZ entrepreneurs landscape.

The state’s economic vitality and a supportive environment for private investment have laid a strong foundation for real estate appreciation. While some national trends indicate market recalibration, Arizona’s trajectory remains largely positive, showcasing resilience and diverse growth patterns across its cities. This article delves into the latest data on home price appreciation, highlighting the communities leading the charge in this flourishing market.

Arizona’s Robust Housing Market Overview

The statewide housing market in Arizona has shown positive trends, with home prices appreciating by 0.5% year-over-year in October 2025. The median home price across the state stood at $447,000 during this period. Furthermore, the number of homes sold saw a 1.7% increase, while the inventory of homes for sale expanded by 9.0% compared to the previous year. On average, homes in Arizona spent 69 days on the market in October 2025.

This growth is underpinned by Arizona’s strong economic performance, including a notable 4.9% GDP growth rate in 2023. State-level population growth has also been significant, with the population now nearing 7,582,000, a substantial increase from approximately 1,616,000 in 1963. The sustained demand for housing is a direct reflection of these favorable demographic and economic shifts.

The Leaders in Home Price Appreciation

Focusing on the most recent year-over-year data for home price increases as of October 2025, several Arizona cities have distinguished themselves with remarkable growth rates. These communities represent diverse regions of the state, each contributing to Arizona’s overall economic strength.

Sedona Leads the Way

The picturesque city of Sedona topped the list, experiencing an impressive 26.0% year-over-year increase in home prices.

Strong Growth in Catalina Foothills

Following Sedona, Catalina Foothills recorded a substantial 12.4% rise in home prices.

Consistent Gains in Metro Phoenix and Beyond

Several communities within and adjacent to the Phoenix metro area also demonstrated solid appreciation. Chandler and Florence both saw a 5.0% increase in home prices. Anthem experienced a 4.8% growth.

Other Notable Markets

Outside the immediate Phoenix area, Fort Mohave and Green Valley each reported a 4.5% increase in home prices, while Yuma saw a 4.2% rise. Rounding out the top, Sun Lakes achieved a 3.6% increase, and Casas Adobes registered a 2.3% growth.

Beyond Price: Housing Inventory and Population Booms

While year-over-year price changes highlight recent market dynamics, other metrics reveal long-term growth and transformation in various Arizona communities. Cities like Queen Creek and Buckeye, particularly within the greater Phoenix area, have seen extraordinary expansion in housing inventory and population over the past decade, signaling robust Arizona’s economic growth and a fertile ground for Phoenix small business development.

Queen Creek’s Rapid Ascent

Queen Creek has emerged as a significant boomtown in the Phoenix metro area. From 2013 to 2022, its local housing stock surged by 123%, and its population experienced a rapid 128% jump. Over this same decade, home values in Queen Creek doubled, accompanied by a 52% increase in incomes. The town’s population grew by 120.2% from 2015 to 2023, with per capita income rising by 65.7% to $50,866. As of early 2026, the median sale price in Queen Creek is approximately $640,000 to $665,000. However, it is important to note that in December 2025, Queen Creek home prices were down 8.1% compared to the previous year, with a median price of $612,000. The average home value in Queen Creek was $628,265, reflecting a 1.6% decrease over the past year. The town is projected to reach 150,000 residents at full build-out, indicating continued future growth.

Buckeye: A City on the Rise

Buckeye is actively working towards its vision of becoming a major city. Over the past decade (2013-2022), its population increased by 81%, and its housing inventory expanded by 72%, totaling over 30,000 completed units by 2022. Home prices in Buckeye nearly tripled during this period. The city’s average home value in July 2024 was $407,118. More recently, in December 2025, Buckeye home prices were down 3.7% compared to last year, with a median price of $395,000. The average home value stood at $393,805, down 1.7% over the past year.

Inventory Growth in Major Cities

Other traditional hotspots also experienced significant housing inventory growth between 2013 and 2022. Gilbert led with a 24% increase, followed by Chandler at 17%, and Mesa at 12%. Phoenix and Tucson both saw a 6% increase in their housing inventory during this period.

Phoenix Metro’s Enduring Appeal and West Valley’s Rise

The Greater Phoenix area consistently outpaces national housing trends, solidifying its reputation as a preferred destination for both individuals and businesses. In October 2025, Greater Phoenix experienced a 3.8% increase in closed sales compared to the first ten months of 2024. Year-over-year, closed sales in October 2025 rose by 4.9% locally, significantly higher than the 1.5% national increase. The median price for a single-family home in Greater Phoenix matched the national average at $480,000, with a slight local increase of 0.4% over 2024.

The region’s robust growth is fueled by substantial investments, particularly in manufacturing and semiconductor industries, with $113.9 billion in announced industry investment in the Phoenix-Mesa-Chandler metro area. This has contributed to a more than 30% rise in median income since 2019, bolstering purchasing power and demand for housing. Between 2010 and 2020, the Phoenix metro area welcomed approximately 650,000 new residents, reaching nearly 4.85 million. Maricopa County’s population further increased by around 85,000 people between 2023 and 2024, driven notably by international migration.

The West Valley, in particular, has emerged as a hub of opportunity. Characterized by relatively affordable housing and increasing employment opportunities, it continues to attract new residents and businesses. Median home prices in the West Valley generally remain slightly below the broader Phoenix Metro median, offering compelling value for buyers. Buckeye, as noted, is at the forefront of this regional transformation, embodying innovation and progress within the West Valley.

Navigating the Dynamic Market: Entrepreneurial Spirit and Community Insights

Arizona’s real estate market, while dynamic, reflects a healthy balance that benefits both buyers and sellers, moving away from previous years’ intense bidding wars. The increase in inventory provides buyers with more choices and negotiating room, a positive shift for the market’s long-term sustainability. This environment fosters continued growth for Arizona AZ entrepreneurs and supports Phoenix small business expansion, as a stable housing market is often correlated with a strong local economy.

The ongoing development and strategic planning in communities across Arizona demonstrate a commitment to accommodating growth responsibly. This forward-thinking approach, coupled with private investment and community engagement, ensures that the state remains an attractive destination for those seeking economic opportunity and a high quality of life.

Conclusion

Arizona’s housing market, spearheaded by impressive home price growth in cities like Sedona and ongoing expansion in areas such as Queen Creek and Buckeye, continues to be a beacon of economic vitality. The Phoenix metropolitan area remains a powerful engine of growth, attracting new businesses and residents through its innovative sectors, robust job market, and commitment to community development. For Phoenix AZ business owners, Arizona AZ entrepreneurs, and residents alike, understanding these market dynamics is key to navigating the opportunities that lie ahead. Supporting local businesses and engaging in community planning are vital ways to ensure that Phoenix’s economic future remains bright and prosperous.

Frequently Asked Questions

What was the statewide median home price in Arizona in October 2025?

The statewide median home price in Arizona was $447,000 in October 2025.

Which Arizona city experienced the fastest year-over-year home price growth as of October 2025?

Sedona, AZ, experienced the fastest year-over-year home price growth at 26.0% as of October 2025.

How much did Queen Creek’s housing stock and population grow from 2013 to 2022?

Queen Creek’s housing stock grew by 123% and its population increased by 128% from 2013 to 2022.

What was the population increase for Buckeye over the last decade (2013-2022)?

Buckeye’s population increased by 81% over the last decade (2013-2022).

How did the Greater Phoenix area’s closed sales compare to national trends in October 2025?

Comparing October 2025 to the same month last year, closed sales in Greater Phoenix increased by 4.9% locally, compared to a 1.5% rise nationwide.

Key Features of Arizona’s Fastest-Growing Housing Markets

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Author: STAFF HERE PHOENIX WRITER

The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.