Phoenix Housing Market: Trends & Prices (2025)
Phoenix Real Estate Market Overview
(Last Updated – 4/2025)
The enduring appeal of Phoenix — including its modest cost of living and higher quality of life — is still going strong.
In fact, Phoenix is now the fifth largest city in the U.S., with some 4.8 million people residing in the Phoenix metro area as of 2025 — an increase of nearly 2 million residents in just the last 25 years.
That steady growth reflects some of the key factors that draw people to the Valley of the Sun. Thanks to its desert locale, the city hasn’t been as constrained by land limitations, so businesses have been able to expand and provide job opportunities across a diversity of sectors, from tourism to financial services.
While Phoenix has become known for its sprawl, the average commute time is still less than 25 minutes, and it has a well-deserved reputation for its access to nature — with 41,000 acres of desert parks and preserves, and 200-plus miles of hiking trails. No wonder younger people (the average age here is about 35) want to call Phoenix home. If you’re raising a family, you can rest easy knowing that Phoenix has 325 public schools and 200 charter and private schools to choose from.
Although Phoenix can be a competitive market — and home values remain high, as they are throughout most U.S. markets — real estate prices are showing a modest 1% drop in early 2025, according to Zillow, signalling some breathing room. In the past year, the median sale price of about $413,083 is notably lower than the median list price of about $469,667. Here’s what you need to know if you’re looking to buy in Phoenix.
Overall Phoenix Market Trends
When it comes to local housing market trends, it pays to keep an eye on various factors when considering a home purchase in Phoenix. Neighborhood prices can vary, and it’s important to bear in mind that the white hot surge — which brought median home prices up to $413,000 today from $279,000 five years ago — has eased.
Unlike some other metro areas, Phoenix has seen some welcome growth in available homes for sale, with some 23,699 listings in February 2025, a 45% increase over a year ago.
Still, homebuyers can have their work cut out for them, as houses go pending in around 32 days.
$413,000
Median Sale Price
$311
Median Price Per Square Foot
32 days
Median Time on Market
Phoenix Housing Market Forecast
Like the weather, the Phoenix housing market tends to be hot, although the boost to the housing supply has had a cooling effect. While February home prices went down 1% in the Phoenix metro area compared with the prior year, prices are projected to make up that difference and rise about 1.4% by January 2026.
Demand in Phoenix
With inventory kicking up and buyer demand still relatively high, real estate experts say that Phoenix continues to be a seller’s market. That said, interest rates have not fallen as much as some buyers might have hoped in 2025, hovering at about 6.63% for a 30-year fixed mortgage.
Despite competitive home prices, though, Phoenix remains a relatively affordable place to live, with a cost of living at only 6.3% above the national average, according to the Council for Community and Economic Research’s 2024 Cost of Living Index. It is also worth noting that median home prices in Phoenix are lower than some other big cities, like Los Angeles and Portland.
If you are looking to buy into the Phoenix market, real estate experts suggest that this could be a good long-term opportunity if you find a property in your budget.
Recommended: Home Ownership ResourcesDemographics of the Phoenix Market
Arizona may be known as a hotspot for retirees who are looking to enjoy the warm weather, but plenty of young people populate this state too. Nearly two-thirds of the Phoenix population is between 18 and 65 years old, according to the latest census data.
Young adults are drawn to the area in part due to its affordability, natural beauty, as well as schools like Arizona State University. If the housing market in Phoenix is calling your name, consider these data points.
Median Household Income: $79,664
Median Age: 34.9
College Educated: 33.5%
Homeowners: 56.0%
Married: 43.0%
Popular Phoenix Neighborhoods
Phoenix offers a diverse group of neighborhoods to choose from, so do your research before deciding which may be right for you.
The cost of homes, median household income, amenities, and age of residents can vary greatly by neighborhood, of course, but chances are there is a spot that will check all your boxes. Here are five popular neighborhoods in Phoenix to explore.
Recommended: Price-to-Rent Ratio in 50 CitiesAhwatukee Foothills
This quiet, family-friendly suburb lies south of Phoenix proper. While the cost of living here can run a little higher, it’s also got a lower crime rate than other areas — as well as good schools. Ahwatukee Foothills tends to be car dependent, with few people biking or walking.
Quick Facts
Population:
69,828
Median Age:
42
Housing Units:
30,486
Bike Score:
11/100
Walk Score:
2/100
Transit Score:
18/100
Median Household Income:
$123,198
Ahwatukee Foothills Housing Market
Given the quality of life here, it’s not surprising that the market is a fairly competitive one. Median home prices in this area as of February 2025 rose 2.8% compared with a year ago. The median price per square foot is also up 1.5% since last year. The median number of days on the market is 58, a bit longer than a year ago (50 days).
Median Sale Price
$570,000
Median Price Per Sq. Foot
$297
Desert View
This well-populated, affluent suburb lies north of downtown Phoenix, and is known for its views of the famous Sonora desert. The area includes a pleasant mix of city life and a more relaxed family vibe. Horse lovers can check out equestrian ranch properties, as well. With its cafes and parks, plus very good schools, this neighborhood is convenient, safe, and comfortable.
Quick Facts
Population:
75,789
Median Age:
38
Housing Units:
33,494
Bike Score:
49/100
Walk Score:
31/100
Transit Score:
22/100
Median Household Income:
$109,948
Desert View Housing Market
Desert View is a competitive market, and gaining in popularity. The number of homes sold in February 2025 was 40% higher than the year before. But the median price per square foot ticked down modestly by about 0.72% versus Feb. 2024. Homes generally spend about 56 days on the market.
Median Sale Price
$737,000
Median Price Per Square Ft.
$346
Paradise Valley Village
Paradise Valley Village is a bustling, outdoor-friendly neighborhood in northeast Phoenix (and not to be confused with the town of Paradise Valley, which is closer to Scottsdale). It’s known for its golf courses, as well as the Scottsdale Greenbelt trail — a favorite with cyclists. Residents consider it a highly walkable area as well, which adds to its community feel.
Paradise Valley Village also offers plenty of big city amenities: casual dining pubs, restaurants, local artisans, and indoor shopping plazas.
Quick Facts
Population:
111,184
Median Age:
39
Housing Units:
49,055
Bike Score:
78/100
Walk Score:
69/100
Transit Score:
35/100
Average Household Income:
$96,884
Paradise Valley Village Housing Market
Home prices are a bit up and down in Paradise Valley Village, and there may be more opportunities here versus competitive Phoenix neighborhoods. In February 2025, the median home price was 6.8% lower compared to the same period in 2024, although the price per square foot ticked up by 1.5%, and the number of homes sold in February was 2.6% higher. Houses generally spend 53 days on the market.
Houses generally spend 63 days on the market.
Median Sale Price
$587,000
Median Price Per Square Ft.
$217
Camelback East
With its stunning mountain views, Camelback East Village lies between the Phoenix Mountains to the north and the Salt River to the south. It’s known for its hiking trails, access to the renowned Desert Botanical Garden as well as the Phoenix Zoo. Compared with other Phoenix areas, Camelback East has a reputation for attracting young professionals — with a lot of the nightlife, bars, and other amenities this younger demographic enjoys.
Quick Facts
Population:
117,091
Median Age:
37
Housing Units:
56,585
Bike Score:
74/100
Walk Score:
60/100
Transit Score:
42/100
Median Household Income:
$80,242
Camelback East Housing Market
The housing market here is higher priced than some others, and while the median sale price for homes nudged down slightly (-0.37%), the price per square foot rose 9.2% from February 2024 to February 2025. The median number of days on the market is 63, a bit longer than other popular areas in Phoenix.
Median Sale Price
$675,000
Median Price Per Square Ft.
$415
Deer Valley
Deer Valley Village, which encompasses the neighborhood of Deerview, is a dynamic residential neighborhood with one of the highest livability scores in Phoenix. There are a number of popular parks for hikers and bikers (as well as families out with the kids), including Cave Buttes and the Adobe Dam Regional Park, where you can find the Adobe Mountain Train Museum. The excellent school system here is another big draw for young families.
Quick Facts
Population:
89,341
Median Age:
37
Housing Units:
38,781
Bike Score:
57/100
Walk Score:
46/100
Transit Score:
30/100
Median Household Income:
$74,442
Deer Valley Housing Market
The housing market is a little cooler in Deer Valley, compared with other Phoenix neighborhoods. The median sale price of $425,000 is 3.4% lower than a year ago, and the median price per square foot is down 2.5% in February 2025, compared with a year earlier. The median number of days on the market is 58.
Median Sale Price
$425,000
Average Price Per Square Ft.
$271
SoFi Home Loans
It’s easy to see why Phoenix continues to be such a popular market for homebuyers. There are some amazing neighborhoods to choose from, whether you’re young and single or have a family. With its stunning desert location and growing job market — not to mention the allure of Southwest cuisine and culture — Phoenix has something for everyone.
If you think Phoenix could be your home sweet home, then you may need to consider your mortgage financing options.
If you think Phoenix could be your home sweet home, then you may need to consider your mortgage financing options.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
FAQ
Is Phoenix a good place to live?
While Phoenix has a reputation as a sprawling desert town, it has emerged as the fifth-largest U.S. city — with all that implies. Phoenix is home to some 15 neighborhoods, or villages, that offer access to nature preserves and parks as well as safe, family-friendly communities and good schools. The housing market can heat up, as do the temperatures, but it’s no wonder Phoenix continues to attract new residents.
What income do you need to live in Phoenix comfortably?
The income you need to live in Phoenix also depends on numerous factors, including whether you rent or own, and whether you have children. The median household income in Phoenix was about $77,000 in 2023, according to Census data, but for homeowners with children, a median income of $132,000 is likely to provide a more comfortable standard of living, according to research.
What are the benefits of living in Phoenix?
Phoenix is a big city with all the amenities of a cosmopolitan urban center. Its warm, sunny climate and access to mountains, deserts, and hiking trails mean that you can pursue an active, outdoors lifestyle all year round. The cost of living and average home price are relatively affordable, especially compared with other western cities.
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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
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