With its stunning sunsets and iconic cacti, Phoenix is not just a hub of natural wonders, it’s also an evolving hotbed of real estate activity. The Phoenix housing market in 2023 is certainly not the same as the years prior. So, if you’re intrigued by the Phoenix housing market, here’s a comprehensive exploration of its current state.
Phoenix housing market prices and dynamics
Let’s begin with the golden number. In 2023, the Phoenix housing market witnessed a 2.3% year-over-year rise, catapulting the median sale price to $440,000. When you compare this figure with the national numbers, Phoenix proudly stands 5% taller than the national median.
However, the Phoenix housing market isn’t just about escalating prices. It tells a broader story. The number of owners finding new homes was 1,307, marking a 20.5% decline from the previous year. This decrease, juxtaposed with rising prices, hints at an intriguing supply-demand dynamic.
Homes in Phoenix are flying on and off the market quicker than a desert hare. They’re staying on the market for just 35 days on average, a full 8 days shorter than in 2022. Despite this, the Phoenix housing market remains somewhat competitive. The majority of homes are selling for just below their asking price. However, it’s heartening for sellers that about 22.9% of homes bucked the trend and sold above their list price.
Migration patterns in the Phoenix housing market
Phoenix’s allure is undeniable. Between July and September 2023, 70% of Phoenix homebuyers chose to settle down within the comforting confines of the Phoenix metropolitan area.
An intriguing 30% of Phoenix’s populace peeked over the city’s fences, contemplating relocation. On the national front, Phoenix’s charm called out to 2% of relocators. Seattle, Los Angeles and Tucson (pictured above) topped the list of cities whose residents made their way to the desert. But where are exiting Phoenicians casting their wandering eyes? The picturesque Prescott Valley, tranquil Show Low and forested Flagstaff emerged as the top choices.
Nature’s effects on the Phoenix housing market
Today’s homebuyers aren’t just looking at granite countertops and swimming pools. The Phoenix housing market, set against a backdrop of global climate discussions, prompts buyers to consider nature’s whims as well.
- Floods: 12% of Phoenix homes face potential flood threats in the next three decades.
- Fires: A significant 54% of properties sit under the shadow of potential wildfires.
- Winds: Fortunately, severe winds give Phoenix a wide berth.
- Heat: A sizzling 79% of Phoenix homes could feel the heat soaring to worrying levels in the coming years.
Getting around in Phoenix
No look at the Phoenix housing market would be complete without assessing how its citizens move. Phoenix scores 41/100 on the Walk Score®, making it largely car-dependent. Transit options are available but limited, scoring 36/100, while bikers can find solace with a fairly bikeable score of 56/100.
Final thoughts on the Phoenix housing market
The Phoenix housing market story unfolds as a tale of rising prices, quick sales, migration trends and nature’s ever-evolving effects. For buyers and sellers alike, navigating this market requires a blend of data-driven insights and a touch of desert intuition.
The Phoenix rental market: An inside look
The appeal of Phoenix is not only evident in its thriving housing market but also in its rental market. Let’s dive into the numbers and trends defining the Phoenix rental market in 2023.
Snapshot of average rents in Phoenix
If purchasing a home in Phoenix isn’t an option, renting is an attractive alternative. Here’s a concise breakdown of the average rent across various apartment types:
- Studio: Holding steady, a studio apartment carries an average price tag of $1,122 per month, reflecting no annual change.
- 1-bedroom: Renters looking for a bit more space can expect to pay an average of $1,274 for a one-bedroom apartment, marking a slight 3% dip from the previous year.
- 2-bedroom: Those craving more space will find the average rent for two-bedroom apartments at $1,577, a 4% annual increase from the previous year.
Price ranges and their popularity
The Phoenix rental market is diverse, catering to a variety of budgets. A deeper look into the apartment rent ranges showcases a clear preference among renters:
- Budget-friendly: Surprisingly, apartments in the $501-$700 bracket are virtually non-existent, with 0% availability. The $701-$1,000 range, often sought after by budget-conscious renters, constitutes only 4% of the rental market.
- Mid-range: Apartments priced between $1,001-$1,500 are slightly more available, making up 17% of the market. Those between $1,501-$2,100 claim a more significant chunk, with 27% of apartments falling into this bracket.
- Premium choices: Reflecting the city’s growth and the demand for luxury living, a whopping 51% of apartments are priced at $2,101 and above. This dominance underscores a trend towards upscale living in the heart of Phoenix.
Rental market implications
Phoenix’s rental market paints a picture of a city in flux. The predominance of higher-priced rentals suggests a shift towards luxury living and indicates a potential rise in disposable incomes among the city’s populace. However, the relative scarcity of budget-friendly apartments could pose challenges for students, young professionals or those seeking affordable housing options in Phoenix.
As Phoenix continues to grow and evolve, understanding these rental dynamics will be crucial for potential renters, real estate investors and policymakers to ensure that the city remains both welcoming and accessible to all.
Looking for a place to stay in Phoenix? Check out our apartments and homes for rent in the area.
