Real Estate in Arizona: Exploring the Cities and Places

By Ciprian Morariu Published: April 18, 2024

Real Estate in Arizona Exploring the Cities and Places

Arizona’s real estate market is dynamic and diverse, offering a wide range of commercial and residential properties for sale, purchase, and lease. 

The sunny state is inviting for home buyers and investors due to its sunny climate and vast desert landscapes. 

Despite being a popular state with a high population density, Arizona continues to attract people from all around the country. 

In fact, the housing market data shows that Arizona has added more than 800,000 new residents in the last decade! 

To add to this, in 2020 alone, it was reported that Arizona witnessed an inbound domestic migration rate of 60%.

You could be a real estate professional trying to analyze Arizona’s market trends and the state of the sector in the state. Alternatively, you could be a homeowner interested in migrating to AZ or a real estate investor looking to tap into growth opportunities. 

Irrespective of who you are and why you are interested in real estate in Arizona, this article will help you understand the state in detail.

We are going to give you a deep dive into how many cities in Arizona are growing at a fast pace, what are the emerging real estate markets, and much more.

Whether you are considering migrating to the sunny state or simply looking for your next investment opportunity, there’s a lot you need to know about Arizona. Let’s get started! 

Fastest Growing City in Arizona

Introduction to the concept of fastest-growing cities

In the world of real estate, there are many metrics to measure the growth and rise of a local, state, or national market. 

Some of the factors that influence the growth of a real estate market are - rising home prices, a strong job outlook, a stable economy, favorable weather, natural attractions, and a diverse community of residents.

Urban development and economic growth are two major factors contributing to fastest growing cities. These lead to migrants flocking to a city or state creating diversity and prosperity in the process. 

The higher density of multinational corporations and large-scale organizations also boosts the growth and urbanization of a city. 

Factors contributing to the growth of cities in Arizona

Arizona’s real estate market has witnessed its own share of ups and downs, like many other popular states in the country. 

However, post the pandemic, the housing market has bounced back steadily to show stable demand in commercial and residential real estate. 

The state has seen a high population growth of around 12% with people migrating from California, Washington, Colorado, Texas, and Illinois. Simultaneously, the real estate market in Arizona too has shown very impressive growth metrics. 

This is evident from the prevailing median home prices that are higher than the national averages in the USA. 

The strong job outlook, steady growth of population, and an increasing demand for homes have led to Arizona becoming one of the most sought-after real estate destinations.

The Grand Canyon state continues to attract first-time homebuyers as well as retirees who are migrating to the state for many reasons which we’ll look into later in this article. 

Analysis of the fastest growing city in Arizona

Let us take the example of Phoenix, the fastest-growing city in Arizona to understand what are the factors leading to its growth.

The capital of Arizona and the state’s most populous city, Phoenix’s real estate market’s growth can be attributed to the following factors: 

  • Many multinational corporations and leading companies across tourism, technology, aerospace, and mining are present in the state. This leads to a thriving job market attracting migrants searching for better job opportunities. 
  • Affordable housing as compared to other popular states and cities like California, Washington, Detroit, and Illinois. It is the sixth-largest state area so there’s more potential for housing construction in the future. 
  • Phoenix is home to many attractive entertainment and vacation hotspots, making it a popular tourist destination all year round. 
  • Presence of 200+ golf courses, 240 hiking trails including the Grand Canyon, and hundreds of acres of city parks with abundant natural views. 
  • Filled with luxurious hotels, fine dining restaurants, multicultural entertainment centers, and various professional sports arenas. 
  • Well-established public transportation system and seamless connectivity to many urban and rural neighborhoods where new housing projects are being built.

Looking at some of the reasons above, It is no surprise that home prices in Arizona have increased by 8% since last year due to high demand and not enough supply. 

Real estate market trends and opportunities in the fastest-growing city

Arizona’s favorable economic outlook, steady job growth, and pleasant climate are some of the factors contributing to its meteoric rise in the real estate market. 

Compared to the last few years, the median home prices in Arizona have increased by around 20%. 

This makes the state a good investment opportunity for real estate and a safe haven for home buyers. Especially when you look at cities like Phoenix which noticed a massive 34% year-on-year increase in home prices. 

With over 65% home-ownership rate, Arizona’s homeowners prefer their way of life in the Grand Canyon state. 

Cities like Tempe and Tucson also witnessed the number of home permits and homes for sale. 

These numbers indicate that now is a good time to step into the real estate landscape of Arizona. The state has emerged as a potential multi-bagger for real estate investors and is one reason why this is the ideal time to get a real estate license in Arizona and launch a lucrative career. 

The process to get a license by aspiring real estate agents is not complicated either. Go through an Arizona real estate license course and pass the licensing exam to be awarded a license. It is always preferable to choose an Arizona real estate license course online over classroom courses because of the convenience factor. You can study any time from anywhere.    

Even for homeowners and migrants, Arizona offers a vivid and pleasant mix of a stable economy, plenty of job opportunities, and diverse entertainment and leisure options. 

For existing homeowners, the rental market in Arizona is also looking promising with an estimated median rental price of $1675 per month. 

Statistically speaking, the homeownership rate is high, which is a positive indicator of the ability of owners to purchase a home in a region or a state, which is around 65% in Arizona. 

Most Popular Cities in Arizona

Overview of popular cities in Arizona

The sun-kissed state is one of the largest area-wise and offers a mix of beautiful landscapes, diverse cultures, and a favorable lifestyle for residents. These aspects draw in homeowners, migrants, and investors in large numbers.  

Let’s take a closer look at some of the most popular cities in Arizona and the factors contributing to their popularity:  

1. Phoenix: Popularly known as the Valley of the Sun, Phoenix is one of the most populous cities of the state and a promising real estate destination.  

Due to its vibrant metropolitan environment, growing population, and a diverse cultural community, Phoenix’s housing and rental market continues to be a hot favorite amongst homeowners, rentals, and investors. 

Phoenix’s real estate market is showing strong resilience post-pandemic due to its stable economic outlook and increasing number of job opportunities. With a growing number of universities and entertainment centers, Phoenix has emerged as the most preferred city for families. 

As of 2023, the median home price in Phoenix, AZ is estimated at $440K. Additionally, the average monthly rental yield is estimated at $2000. 

These stats indicate that Phoenix is a stellar choice for real estate investors as well as home buyers. 

Especially as new construction and housing development projects are on the cards due to a strong job outlook and a rising population. 

2. Scottsdale: Is a city known for its holiday resort-like vibe and laid-back, upscale lifestyle. 

The city’s housing market is robust and growing steadily, with a median home price valued at $830,000. For the rental market, the prospects have been looking good as well, especially as the city’s median rent is estimated at $3000.

There are many reasons why Scottsdale is an emerging destination for homeowners and rentals. Firstly, due to its steady job rate and low unemployment rate, Scottsdale’s future job market is poised to grow by at least 50% in the next decade. 

This is even higher than the country’s average job rate growth which indicates a steady job economy in the city. 

Secondly, Scottsdale’s reputation as a resort-like city and the various geographic benefits it possesses make it a popular tourist and retiree destination. It also opens up new avenues in the luxury real estate market. 

Overall, Scottsdale's economy is stable and steady and it offers a great mix of culture, geography, and job opportunities for homeowners and vacation rentals. 

With a strong job outlook, growing population, and a robust economy, Scottsdale is a great real estate investment opportunity. 

3. Tucson: is another popular real estate investment opportunity for homeowners and investors looking for favorable tailwinds from Arizona’s popularity. 

Tucson is home to beautiful natural attractions and awe-inspiring scenic national parks. It is also home to the famous University of Arizona and therefore, a popular destination for the educated and inspired.

As of 2023, Tucson’s real estate market is steadily growing and showing no signs of slowing down. The median home price for a single-family home in Tucson is valued at around $330K, which has witnessed year-on-year growth. 

Tucson is home to a growing population of more than 500,000 residents, making it the second most populous city in Arizona. 

Additionally, Tucson’s job market is also looking promising as the city’s employment rate saw an impressive increase of around 3.4% year-on-year. 

Another factor that makes Tucson a promising real estate investment opportunity is the number of diverse cultural attractions and its vibrant vibe. These give Tucson its own charm and make it a desirable tourist destination. 

Overall, Tucson’s economy is on a growth trajectory and its job market is also on the rise. These along with a rising population are strong factors for homeowners and real estate investors. 

Real estate market insights and investment opportunities in the most popular cities

Some of the biggest cities in Arizona are emerging markets for real estate investments. 

  • Phoenix is considered a buy-and-hold market for real estate. 
  • Tucson is a promising real estate market for the long term. 
  • Tempe is witnessing strong demand for real estate, good for fix-and-flip investments.
  • Flagstaff is a promising investment opportunity for rental and vacation properties. 
  • Gilbert is showing the highest vacancy rates and rapidly growing housing prices. 
  • Mesa has emerged as the 13th fastest-growing city in the country. 

All in all, Arizona’s real estate landscape is filled with numerous investment and housing opportunities.