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June saw a record 350+ luxury listings over $3M in Scottsdale and Paradise Valley, with the top sale closing at a jaw-dropping $21 million. Across Maricopa County, new construction permits jumped 12% year-over-year, while Greater Phoenix’s multifamily vacancy rates remain stable at 6.2% and effective rents up 3.1%. I spotlight how wealth managers navigate these trends for value stability, tax savings, and portfolio resilience—especially as legislative reforms and future-focused city planning shape the market. From advanced water management and green-building incentives to smart-city tech and infill redevelopment, this brief covers it all. Stay with me for actionable updates on market velocity, build-out, population growth, and the smart, sustainable future shaping Arizona real estate!
Scottsdale and Paradise Valley have seen an unprecedented influx of luxury listings, with more than 350 properties listed over $3 million in June 2025, according to Zillow and local MLS data. The area’s most expensive transaction closed at $21 million, while the lowest luxury listing dipped to $1.95 million. These markets remain favored for wealth preservation due to their high barriers to entry, strong HOA governance, and substantial private infrastructure. Property taxes in this bracket are managed with tailored strategies, including historic and green-building exemptions. Notably, regulatory reforms continue to safeguard privacy and limit short-term rental proliferation, stabilizing the high-end market against volatility. Green-certified estates and new-builds with net-zero features are increasingly spotlighted in listings, supporting long-term value and sustainability goals for affluent buyers.
Source: Zillow Research, Scottsdale Permits
Maricopa County continues to lead Arizona in new residential construction, issuing over 4,800 permits in Q2 2025, reflecting a 12% annual increase per U.S. Census Building Permits Survey. Most activity is concentrated in Queen Creek, Buckeye, and Goodyear, as tracked on city permit portals. Increased construction signals robust demand, and wealth managers are closely monitoring the timing of asset deployment to optimize for tax incentives linked to new builds. State and county initiatives streamline permit approval to encourage mixed-use and multi-generational housing, while ensuring new developments adhere to advanced water management regulations. Cities are integrating sustainability metrics into permitting, such as mandatory EV charging readiness and xeriscape landscaping, positioning the region as a model for future-proof growth.
Source: U.S. Census Permits, Maricopa County
Greater Phoenix’s multifamily sector remains resilient, with CoStar and Yardi Matrix reporting vacancy rates steady at 6.2% and effective rent growth of 3.1% year-over-year as of June 2025. Demand is strongest in Peoria, Tempe, and Gilbert, driven by job growth and in-migration. Wealth portfolios with multifamily assets benefit from stabilized income streams, while depreciation schedules and 1031 exchanges are actively leveraged for tax planning. Regulatory discussions continue around rental caps and tenant protections, with municipalities balancing affordability and investor returns. Developers are increasingly required to include smart building infrastructure and energy-efficient design to meet evolving city codes and attract sustainability-conscious tenants.
Source: CoStar, Yardi Matrix
In May and June 2025, average days on market (DOM) in key submarkets such as Chandler, Mesa, and Gilbert have increased from 18 to 28 days compared to the same period last year, according to Redfin and local MLS data. This cooling reflects growing supply and more selective buyer behavior. For wealth management, longer DOM can provide negotiation leverage and preserve value in estate transactions. Tax assessments are expected to remain stable due to the moderate pace of transactions. Ongoing regulatory initiatives target improved transparency in listing data and disclosures, bolstering buyer confidence. Enhanced listing requirements now include environmental risk disclosures, contributing to smart-city transparency and long-term investment protection.
Source: Redfin Data, ARMLS
Chandler and Mesa are nearing mature build-out, with Chandler estimated at 88% and Mesa at 84% of developable land utilized, based on municipal GIS and regional planning data. This saturation constrains new supply, increasing the focus on strategic infill and redevelopment of underused commercial parcels. Wealth managers recognize this trend as supportive of value retention for existing properties. Cities are rolling out tax incentives for redevelopment projects, particularly those converting retail to residential or mixed-use. Legislative changes have reduced procedural barriers for infill, accelerating project timelines. Sustainable redevelopment—such as adaptive reuse and walkable mixed-use districts—is a key theme in planning commission agendas, further future-proofing the local market.
Source: City of Chandler, MAG Socioeconomic Projections
The Phoenix-Mesa region’s job growth continues to outpace national averages, with 2.7% annual employment growth reported by the BLS and Arizona Commerce Authority. Unemployment remains low at 3.6%. High job creation supports ongoing housing demand and underpins real estate value stability. Tax planning is shaped by increases in household income, while legislative actions aim to expand workforce housing near employment centers. Infrastructure investment in public transit and digital networks is prioritized for economic resilience. These dynamics, combined with energy and water innovation projects, support the region’s reputation as a business-friendly, future-ready urban hub.
Source: BLS Phoenix, Arizona Commerce Authority
Arizona’s population continues to rise, with MAG projecting Maricopa County’s population to exceed 5.1 million by 2030. Positive net migration rates, particularly among working-age professionals and retirees, reinforce demand in new-build communities such as Surprise, Laveen, and Florence. Wealth managers cite positive migration as a hedge against regional market downturns elsewhere. Population growth triggers incremental tax revenue and enables continued investment in public amenities. Zoning and land-use regulations are being revisited to accommodate growth, including provisions for denser, transit-oriented developments. Urban planners are aligning expansion with sustainability mandates, emphasizing water conservation and green infrastructure.
Source: MAG Socioeconomic Projections, U.S. Census
Foreclosure and distressed property rates in Arizona remain at historic lows, with RealtyTrac reporting a foreclosure rate under 0.08% statewide as of June 2025. However, select pockets in outer metro areas such as El Mirage and Tolleson have shown minor upticks. For private portfolios, low distress levels sustain broader market confidence, while higher concentrations warrant closer scrutiny for asset risk. Tax sale opportunities remain limited, and new legislation aims to ensure transparency in notice procedures. Statewide, ongoing monitoring for insurance and climate risks is a compliance and wealth preservation priority. Smart-city dashboards are increasingly tracking these risks and deploying resources proactively.
Source: RealtyTrac, ATTOM Data
Arizona’s regulatory agencies, led by the Arizona Department of Water Resources, continue to update assured water supply rules and groundwater management plans, affecting large-scale developments in the Phoenix metro and Pinal County. Wealth managers are monitoring water portfolio impacts and factoring new infrastructure assessments into estate planning. Recent legislative actions, including revisions to the Assured Water Supply Program, directly impact development feasibility and valuations in fast-growing corridors. Tax advantages are available for investment in water-efficient technologies and landscaping. Municipalities are deploying advanced water monitoring and allocation tools as part of their smart-city initiatives, underlining the importance of environmental stewardship for future-proof market value.
Source: AZ Water Resources, Maricopa County
Several major master-planned communities have commenced development in the last quarter, including Verde River, Queen Creek Station, and projects in Casa Grande and Maricopa City. These offer a mix of luxury, family, and active adult housing options, with substantial private amenity packages and built-in sustainability features. For investors, new-build incentives, phased tax assessments, and favorable depreciation schedules provide multiple planning angles. Regulatory fast-tracking for these projects includes comprehensive infrastructure and environmental review. City partnerships are prioritizing greenways, integrated trails, and water-smart design to ensure long-term value and resilience.
Source: New Home Source, City of Maricopa
Arizona cities, including Phoenix, Tempe, and Peoria, are advancing smart-city initiatives with real-time energy, water, and traffic management. For example, Tempe’s IoT traffic systems have reduced average commute times by 9%, and Phoenix’s green building incentives have driven a 15% increase in LEED-certified projects since 2023. Wealth managers note these programs increase desirability and value retention. Municipal tax credits for energy efficiency and solar installation further enhance after-tax returns. Current legislation encourages cities to integrate climate resilience metrics into zoning, while planning commissions are fast-tracking adaptive reuse and green infrastructure projects.
Source: City of Phoenix, City of Tempe, AZ Commerce
Across all listed markets—Phoenix, Scottsdale, Paradise Valley, Fountain Hills, New River, Anthem, Cave Creek, Carefree, Verde River, Peoria, Tempe, Mesa, Gilbert, Chandler, Glendale, Queen Creek, Surprise, Sun City East, Sun City West, Buckeye, Laveen, Tolleson, El Mirage, Litchfield Park, Goodyear, Ahwatukee, Apache Junction, Gold Canyon, Florence, Maricopa City, Casa Grande, Greater Phoenix, Tucson, Sedona, Payson, Prescott, Show Low, Avondale, Eloy, and Arizona at large—official local government portals provide granular updates on permits, zoning, council actions, and public hearings. Transparent data access supports advanced portfolio monitoring and is increasingly leveraged for compliance, reporting, and ESG tracking. Tax professionals and legal advisors continue to cite digital permit platforms as critical for due diligence, and new city apps are improving citizen access to development data and smart-city services.
Source: Local City Links, Maricopa County, List of Official Local Sources
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In 2024, more than 160 cities globally adopted new people-centered smart city standards, prioritizing inclusivity, sustainability, and digital rights. These
Thank you for joining me for this week’s Arizona real estate and smart-city news brief! I hope these insights empower you to make confident, informed decisions—whether you’re an investor, advisor, or homeowner. Don’t forget to share this newsletter with your network, follow me on social media for more market intelligence, and schedule your private Zoom strategy session for tailored portfolio guidance and forward-looking planning. Here’s to thriving in Arizona’s dynamic, sustainable real estate landscape!
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Nice to meet you! I’m Katrina Golikova, and I believe you landed here for a reason. I help my clients to reach their real estate goals through thriving creative solutions and love to share my knowledge—giving lots of freebies along the way.
See You Soon,
Katrina
You can listen right now to current news
You can listen to all AZique real estate news and insights on Spotify or any other preferred platform of yours: YouTube, Amazon, Audible, Apple Podcast. Daily Arizona real estate market pulse – straight from Sonoran Desert to you where ever you are!
Always fresh, smart, data-driven from Sonoran Desert straight to your mailbox
Click here to explore current mortgage rates. Rates may vary based on credit score, loan type, and lender policies. For the most accurate estimate, consult with a lender.
Realty One Group
Katrina Golikova
Real Estate Professional
License ID: SA696603000
17550 N Perimeter Dr, Scottsdale, AZ 85255
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