Phoenix Housing Market: Trends & Prices (2026)
Phoenix Real Estate Market Overview
(Last Updated – 9/2026)
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 5.2 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 26 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 median 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.
Phoenix is currently a somewhat competitive market. Real estate prices are showing a modest 1% year-on-year increase, with a median sale price of $454,699 in August 2026, according to Redfin. The average home sells for about 2% below list price. Going through the mortgage preapproval process can help you see how much house you can afford. Here’s what you need to know if you’re looking to buy in Phoenix.
Phoenix Real Estate 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 around $455,000 today — has eased.
Unlike some other metro areas, Phoenix has seen some welcome growth in available homes for sale, with some 6,800 listings in August 2026.
Still, first-time homebuyers can have their work cut out for them, as hot houses go pending in around 30 days.
$454,699
Median Sale Price
$271
Median Price Per Square Foot
57 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 August 2026 home values were down 1.5% in the Phoenix metro area compared with the prior year, the market forecast for the next year is positive.
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 increased in 2026, reaching 6.67% for a 30-year fixed mortgage in August.
However, despite competitive home prices, Phoenix remains a relatively affordable place to live, with a cost of living at only 5.3% above the national average, according to the Council for Community and Economic Research’s 2025 Cost-of-Living Index. It is also worth noting that median home prices in Phoenix are lower than some other big cities, including 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 hot spot 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 such as Arizona State University. If the housing market in Phoenix is calling your name, consider these data points:
Median Household Income: $85,246
Median Age: 35.4
College Educated: 35.9%
Homeowners: 58%
Married: 44%
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 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 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:
69,767
Median Age:
43
Housing Units:
30,645
Bike Score:
11/100
Walk Score:
2/100
Transit Score:
18/100
Median Household Income:
$122,833
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 August 2026 fell 0.97% compared with a year ago. The median price per square foot is also down 7.1% since last year. The median number of days on the market is 55, a bit shorter than a year ago (65 days).
Median Sale Price
$539,739
Median Price Per Sq. Foot
$276
Chandler
Chandler is a suburb with many opportunities for business and outdoor activity. There are several big-tech companies located here, and you’ll also be able to enjoy more than 60 parks and visit the Chandler Center for the Arts and Chandler Museum.
Like much of Phoenix, Chandler offers many single-family Southwestern or ranch-style homes in master-planned communities. The southern part of the neighborhood has newer detached properties, along with 55-plus communities with townhomes and condos.
Quick Facts
Population:
280,136
Median Age:
38
Housing Units:
112,800
Bike Score:
56/100
Walk Score:
90/100
Transit Score:
40/100
Median Household Income:
$108,095
Chandler Housing Market
Chandler is a somewhat competitive market that’s gaining in popularity. The number of homes sold in August 2026 was 6.4% higher than the year before. But the median price per square foot ticked down modestly by about 1.2% versus August 2025. Homes generally spend about 49 days on the market.
Median Sale Price
$519,656
Median Price Per Square Ft.
$284
Arcadia
Located between Phoenix and Scottsdale, Arcadia is a paradise in the middle of the desert, with many streets lined with citrus and palm trees. It features a range of home styles, including post-war ranches, Spanish-style abodes, and custom-built estates.
The neighborhood’s community hosts many events and enjoys pickleball, tennis, and volleyball games at the nearby G.R. Herberger Park. For more outdoor fun, you can visit the Camelback Mountain Preserve. Arcadia also has highly rated Scottsdale and Phoenix school districts.
Quick Facts
Population:
6,136
Median Age:
38
Housing Units:
3,981
Bike Score:
64/100
Walk Score:
36/100
Transit Score:
38/100
Average Household Income:
$92,851
Arcadia Housing Market
In August 2026, the median home price was 49.3% higher compared to the same period in 2025, the price per square foot ticked up by 8.5%, and the number of homes sold in August was 17.2% higher. Houses generally spend 76 days on the market. If you’re interested in living in Arcadia, you may need to consider a jumbo loan.
Median Sale Price
$1,989,040
Median Price Per Square Ft.
$563
Tempe
Tempe is an energetic area that is home to an Arizona State University campus. It’s about 10 miles from Downtown Phoenix, and ASU students and alumni alike can take advantage of that proximity for work and fun.
In the downtown hub, you can dine and shop on Mill Avenue. The Tempe Festival of the Arts is held twice a year, and Tempe Town Lake is popular for kayaking and paddleboarding during warmer weather.
Quick Facts
Population:
188,065
Median Age:
30
Housing Units:
86,182
Bike Score:
80/100
Walk Score:
72/100
Transit Score:
48/100
Median Household Income:
$79,663
Tempe Housing Market
The housing market here is somewhat competitive. The median sale price for homes rose by 1.0%, and the price per square foot rose by 3.0% from August 2025 to August 2026. The median number of days on the market is 51, which is fairly similar to other popular areas in Phoenix.
Median Sale Price
$469,689
Median Price Per Square Ft.
$294
Deer Valley
Deer Valley has the perks of natural beauty, urban amenities, and a top-rated school district. Legend Springs Elementary and Sierra Verde Elementary, for example, have perfect scores according to GreatSchools. Housing options in the neighborhood include estates on the north end and smaller, single-family properties on the south. Nearby, you can visit the Deem Hills Recreation Area, Thunderbird Conservation Park, and the Phoenix Sonoran Desert Preserve.
Quick Facts
Population:
90,335
Median Age:
37
Housing Units:
39,149
Bike Score:
57/100
Walk Score:
48/100
Transit Score:
32/100
Median Household Income:
$76,605
Deer Valley Housing Market
The housing market in Deer Valley is somewhat competitive. The median sale price of $426,794 in August 2026 is 3.3% lower than a year ago, and the median price per square foot is up 2.5% since last year. The median number of days on the market is 52.
Median Sale Price
$426,794
Average Price Per Square Ft.
$269
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 home loan 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 divided into 15 urban 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 $81,332 in 2024, according to Census data, but for a family of two working adults and two children, the Massachusetts Institute of Technology Living Wage Calculator suggests a required income of $121,972 before taxes.
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 prices are relatively affordable, especially compared with other western cities.
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