Phoenix Real Estate 2025: Why Smart Money Is Doubling Down on Future-Proof Arizona Markets

This article is for informational purposes only and does not constitute financial, investment, or legal advice. Please consult a licensed professional for personalized guidance.

Welcome to this week’s Market Pulse, your trusted resource for discerning investors navigating the evolving Arizona real estate landscape. Inventory in Greater Phoenix remains historically tight, with active residential listings near 15,000—well below the decade’s average—and median prices reaching $477,000, up 2.7% year-over-year. For wealth managers, this sustained scarcity supports robust asset allocation strategies, while rising values and updated property tax assessments underscore the importance of proactive portfolio planning. Legislative action, including streamlined permitting and new incentives for mixed-use and accessory dwellings, is reshaping the regulatory context and enhancing market adaptability. With most core areas over 85% built out, ongoing infill and redevelopment continue to future-proof asset value and market stability. Importantly, local smart-city initiatives and investments in water, energy, and digital infrastructure are aligning with global ESG benchmarks, underscoring sustainability as a central pillar of long-term investment confidence.

Active Listings and Supply Dynamics in Greater Phoenix

Greater Phoenix inventory has remained tight in 2025, with active residential listings hovering near 15,000, which is below the 10-year average for this period. This persistent supply constraint is underscored by a 7% year-over-year drop in new listings, according to ARMLS. Wealth managers are increasingly focusing on real asset allocations as physical inventory scarcity supports price stability. Local property tax assessments are anticipated to reflect higher valuations in the 2025 roll, while recent state bills streamline rezoning for mixed-use and multifamily, particularly in central districts. In terms of future-proof value, limited developable land in core markets like Chandler and Scottsdale (some over 85% built-out) points toward ongoing infill and redevelopment strategies, an approach closely aligned with sustainable urbanism and smart-city infrastructure priorities. Source: ARMLS Statistics, Cromford Report, City of Chandler

Median Price Trends and Affordability Pressures

The median sale price in the Phoenix metro area reached approximately $477,000 in May 2025, marking a 2.7% increase year-over-year per Zillow’s ZHVI. This upward movement in values is matched by a moderate decrease in affordability, as mortgage rates average 6.8% for 30-year fixed loans (Mortgage News Daily). Higher values affect wealth portfolios by increasing equity holdings but may also push more buyers into higher property tax brackets. Statewide housing policy, such as HB2110 and HB2447, now incentivizes accessory dwelling units and mixed-use, providing relief valves for affordability. Luxury properties and high-performance green homes continue to outperform, with resilience to market corrections due to their desirability and energy efficiency credentials. Source: Zillow Market Report, Mortgage News Daily

Days on Market and Market Velocity

In May–June 2025, the average days on market (DOM) in Maricopa County stood at 38, up modestly from 31 days a year prior, but still well below the pre-pandemic average of 52 days. This swift market velocity suggests robust demand, supporting liquidity and favoring capital deployment for institutional investors. Wealth planners should note the tax implications of rapid turnovers, as short-term holdings may be subject to higher capital gains rates. Legislative reforms accelerating permitting—particularly in Mesa and Queen Creek—aim to maintain transaction momentum, supporting predictable value realization for both owner-occupants and investors. Smart-city initiatives, such as streamlined e-permitting, are reducing friction and enhancing transparency in market operations. Source: Cromford Report, Maricopa County Permit Portal

Luxury Market Performance and Spotlight Deals

Paradise Valley and North Scottsdale continue to command Arizona’s highest price points, with the top decile of listings surpassing $6.8 million as of Q2 2025 (Redfin, ARMLS). The luxury segment’s average days on market is 62—faster than historical norms for this cohort—indicating ongoing appetite among cash and trust-driven buyers. Wealth managers benefit from sustained asset appreciation in these enclaves, while Proposition 117’s tax cap continues to limit abrupt tax bill surges for primary residences. Zoning changes (e.g., for larger lots and amenities) and insurance cost recalibrations are active themes, as fire and climate risk premiums rise. Many new builds in these zones achieve LEED or Energy Star status, contributing to long-term value resilience. Source: Redfin News, ARMLS

Construction Pipeline and New Opportunities

Across Greater Phoenix, over 22,000 residential building permits were issued in the past 12 months, with notable concentrations in Buckeye, Queen Creek, and Goodyear—areas offering both affordability and future growth runway. Yardi Matrix reports multifamily vacancy holding at 5.2%, indicating supply absorption is matching demand. Wealth managers and family offices are increasingly targeting new developments for portfolio diversification. Local governments are leveraging impact fee reforms and state incentives to expedite approvals, fostering smart growth and encouraging adaptive reuse. Infrastructure upgrades—especially water resource investments—are prioritized in regional capital budgets to support sustainable expansion. Source: U.S. Census Building Permits, Yardi Matrix, Maricopa County Planning

Foreclosure and Distressed Property Activity

ATTOM Data Solutions reports that foreclosure filings in Maricopa County remain low at 0.09% of housing units as of May 2025, substantially below national averages. Low distressed inventory reduces systemic risk for wealth portfolios and keeps downward pressure on property tax rollbacks to a minimum. Regulatory changes in disclosure rules (Arizona Department of Real Estate) have tightened protections for buyers and lenders. Continued improvements in insurance and climate mitigation practices, particularly in outlying and fire-prone areas, are helping to future-proof both values and community stability. Source: ATTOM Data, Arizona Department of Real Estate

Hire Me to Represent You
when Purchasing New-Build Home

Migration, Population Growth, and Economic Health

MAG projections show the Phoenix-Mesa-Scottsdale region expects a population increase of 1.2% annually through 2045, with in-migration driving a significant portion of demand. Net migration into Maricopa and Pinal counties remains positive, especially among prime working-age and retiree cohorts. This supports a robust housing market and underpins regional economic diversity. Higher population growth correlates with rising household formation rates, affecting both estate planning and long-term asset allocation. Tax policy remains stable, while water resource management (ADWR assured supply rules) is increasingly crucial for sustainable expansion and investor confidence. Source: MAG Socioeconomic Projections, Arizona Department of Water Resources

Regulatory and Legislative Update

Recent state legislation, including HB2447 and HB2110, mandates streamlined permitting and expanded rights for accessory dwellings and mixed-use conversions across Arizona municipalities. These regulatory shifts are designed to address housing shortages and improve capital efficiency for developers and private investors. Local governments are concurrently updating zoning ordinances to align with state mandates, a move that fosters flexibility and preserves value stability across market cycles. Smart-city initiatives, such as digital permit tracking and real-time public hearings, enhance transparency and community engagement. Source: Arizona Legislature, Maricopa County Zoning

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! 

Sustainability and Future-Proof Infrastructure

Municipalities including Scottsdale, Tempe, and Chandler are investing in water conservation technology, renewable energy, and broadband expansion as part of their capital improvement programs for 2025–2028. These initiatives bolster the resilience of property values and align with global ESG benchmarks, a key consideration for institutional and high-net-worth buyers. Tax incentives for solar adoption and LEED-certified construction remain active. Legislative focus on sustainable infrastructure and resource management supports long-term appreciation, ensuring these areas retain their competitive edge among “future-proof” investment destinations. Source: City of Scottsdale, City of Chandler

Smart-City and Civic Engagement Metrics

Phoenix, Scottsdale, and Mesa are among the most digitally advanced municipalities in the region, offering comprehensive e-permitting, public data dashboards, and robust civic engagement via social platforms. Community engagement indices—measured by participation rates in public meetings and online forums—remain high, supporting social stability and investor confidence. These factors are now part of national livability and risk-adjusted return indices used by private wealth advisors and institutional investors. Consistent resident satisfaction, as reported in municipal surveys, points toward continued value retention and political stability. Source: City of Phoenix, Mesa Open Data, MAG

Cities of the Future - Practitioner's Vision

Thank you for joining me for this week’s AZique Market Pulse, where timely, high-trust analysis of Arizona’s property markets brought to you in an easy to read and timely manner. If you found these insights valuable, I invite you to share this brief with your network and follow me on your preferred social media channels for continuous updates. For those seeking discreet, tailored guidance, I welcome you to schedule a private Zoom strategy session and explore how my research can support your unique investment objectives.

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.

Share 

I want to receive Weekly Real Estate NewsBrief via e-mail

Warm regards,
Katrina Golikova
Licensed Real Estate Advisor 📍 Scottsdale, AZ

More Fun and Interactive Things Here – Join the Community

schedule

personal zoom consultation

Your Personal Real Estate Strategy Session

I’d love to connect with you for a complimentary 60-minute Zoom consultation to discuss your real estate goals and answer your questions about Scottsdale’s market. This personalized session is designed to give you clarity and confidence in your next steps.

60 Minutes

Focused entirely on you

Personalized

Tailored to your needs

Actionable

Clear next steps

Pro tip: Come prepared with your questions for the most valuable conversation!

What’s the one question you’ve been meaning to ask a real estate advisor?

How to Prepare

  1. Jot down your biggest questions—no topic is off-limits.
  2. Clarify your goals (timeline, location, budget, lifestyle).
  3. Gather any documents you’d like to review together.
My Clients' Rate the Outcome of the Consultation
42%
faster decision-making
65%
greater clarity on pricing
100%
appreciation for insight
Editorial

professional tips & Insights

Something to Think about

Contract

overview of the purchase contract

beware about these Nuances

Land

nuances & Insights

other nuances of Sonoran desert

Current News On Air

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! 

Subscribe
to Be In The Know

Always fresh, smart, data-driven from Sonoran Desert straight to your mailbox

New From AZiqueHomes.com
Subscribe👇🏽

News Brief

AZique News Brief with katrina

Archive

On Air Now

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! 

On Focus

Smart Cities Tracker
azique experience

Watch

Watch AZiqueHomes Video Channel

Dose of local insights. Please subscribe and watch.

Cities of the Future

Scottsdale 2075

On Trend

Popular Stories

Why Arizona’s Desert Life Is the New American Dream

Far from a dry frontier, the Sonoran Desert reveals itself as a refined landscape of innovation, wellness, and intentional living. From sipping craft espresso beneath mesquite trees to paddleboarding through historic canals, Scottsdale is proving that desert life can be both invigorating and serene.

This desert renaissance has meaningful implications:

The Future of Work Is Changing Where We Live – 100 New high-paid jobs by 2075

Why High-Income Professionals Are Relocating to Scottsdale for Smart, Luxury Living
In the next 50 years, over 100 emerging high-paid professions will reshape how and where we live. From AI psychologists to space economy strategists, the work landscape is becoming borderless, digital, and deeply personalized. The modern professional isn’t

On Air Now

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

New From AZiqueHomes.com
Subscribe👇🏽

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.

Explore

where in the valley

This was ment to be

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