Phoenix Real Estate Statistics And Trends For 2022

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Phoenix Real Estate Statistics And Trends For 2022

Due to the metro area’s double-digit rent growth and high price-to-rent ratio, real estate investors are purchasing more homes in Phoenix than in any of the other top 30 markets in the United States.

Phoenix, also known as the Valley of the Sun, is the state capital and the most populous city in Arizona.

With over 4.8 million residents in the metropolitan area, the demand for housing in Phoenix is driven by a variety of factors, including a lower cost of living and 300 days of sunshine per year.

There’s plenty to do in Phoenix, from bustling urban areas to suburban communities. All four major professional sports leagues are located in the city, as are world-class dining resorts and dozens of museums and performing arts venues.

Population expansion
Over the last decade, no city grew faster than Phoenix. The Phoenix metro area’s population increased by 603,451 people at a rate of 15.8% over the last decade. 2

In-bound migration, retirees, middle-class families from California and other states looking for more affordable housing, and tech companies are all finding Phoenix to be an ideal location.

Key population figures:

Phoenix has a population of over 1.6 million people, and the Phoenix-Mesa-Scottsdale metropolitan area has a population of nearly 4.4 million people.
Phoenix’s population has increased by 15.8% over the last decade and by 1.7% year on year.

Phoenix is the state capital, the most populous city in Arizona, and the fifth most populous city in the United States.
Greater Phoenix’s population is expected to reach 5.64 million by 2029.
Mesa, Chandler, Glendale, Scottsdale, Gilbert, Tempe, and Peoria are four major cities in the Phoenix metropolitan area and Maricopa County (where Phoenix is located).
More than 40 million people, including residents of nearby metro areas such as Los Angeles, San Diego, Las Vegas, and Albuquerque, are within a one-day drive of Phoenix.
The Phoenix metro area has a per capita income of $34,378 and a median household income of $67,068.

The labor market
Phoenix has led the nation in job growth, with small business employment growing by nearly 6% year on year. Indeed, Arizona is expected to experience 1.6% annual job growth through the end of the decade. 5,6

Key employment figures:

According to the Federal Reserve Bank of St. Louis, the Phoenix-Mesa-Scottsdale MSA has a GDP of more than $281 billion and has grown by more than 57% over the last decade.

Phoenix’s unemployment rate is 2.7% as of April 2022.

Leisure and hospitality, professional and business services, education and health services, and trade and transportation are the job sectors in Phoenix that are growing the fastest.
Advanced manufacturing, aerospace and defense, cybersecurity, e-commerce and logistics, finance and insurance, healthcare and biomedical, and startups are among the target industry sectors that are thriving in Greater Phoenix.

The State of Arizona, Wal-Mart Stores, Banner Health, the City of Phoenix, Wells Fargo, Bank of America, and Maricopa County are the top major employers and businesses in metropolitan Phoenix.

More than 40 universities and educational institutions, including Arizona State University, Northern Arizona University, the University of Arizona, and Maricopa Community Colleges, are located in the Phoenix metropolitan area.
About 88% of Phoenix residents have a high school diploma or higher, and more than 32% have a bachelor’s or advanced degree.
Phoenix’s transportation infrastructure includes two Interstate highways and freight rail lines with connections to the West Coast, Southwest, and Mexico.
Sky Harbor International Airport serves over 1,200 domestic and international destinations on a daily basis.

The housing market
Phoenix leads the nation in home price growth, with prices up 29.3% year on year. Part of the reason for the surge in demand for Phoenix homes may be buyers moving from urban apartments to suburban homes, as well as strong investor demand for Phoenix rental property. 10,11

Key market statistics:

As of October 31, 2021, the Zillow Home Value Index for Phoenix is $383,924.


Phoenix home values have increased by 29.6% in the last year and by more than 204% since 2016.
According to the most recent Realtor.com report, the median listing price of a home for sale in Phoenix is $475,000 (April 2022).

In Phoenix, the median listing price per square foot is $293.
In Phoenix, the median sold home price is $461,000.
The sale-to-list price ratio in Phoenix is 101.61%, indicating that homes sell for slightly more than the asking price on average.
According to Realtor.com, Phoenix is a seller’s market because there are more buyers than available homes.
Arcadia is the most expensive neighborhood in Phoenix, with a median listing price of $1.7 million.
Central City South is Phoenix’s most affordable neighborhood, with a median listing price of $324,500.

Renters’ market is strong.
Investors are flocking to Phoenix, drawn by the market’s high price-to-rent ratio of 25.9 and double-digit increase in rent prices. In fact, more inventory is being taken away by real estate investors in Phoenix than in any other of the top 30 metropolitan areas. 14

Key market statistics:

According to Zumper, the median rent for a three-bedroom home in Phoenix is $2,175 per month (as of December 2021).

Rent in Phoenix has increased by 8% year on year.
The price-to-rent ratio in Phoenix is 25.9, indicating that the market is more favorable to renters than homebuyers.
Single-family homes account for 70% of housing units in Phoenix, making them an appealing rental option.
According to recent RENTCafé research, renter-occupied households account for 36% of all occupied housing units in Phoenix.
About 28% of Phoenix’s population is between the ages of 20 and 39, which is an important demographic for rental property investors.

Price changes in the past and housing affordability
The Home Price Index (HPI) and the Housing Affordability Index (HAI) are two of the most commonly used data sets used by real estate investors when analyzing markets to buy rental property (HAI). The HPI tracks the change in housing prices over time, whereas the HAI tracks the median cost of housing in relation to median household income.

The Freddie Mac House Price Index (FMHPI) measures the average price inflation for houses in the United States. According to the most recent Freddie Mac Home Price Index for Phoenix, seasonally adjusted home prices in the Phoenix metro area have increased by more than 212% in the last five years: 18

HPI for April 2016: 173.09
HPI for April 2022: 367.14
Change in home prices over five years: 212.1%
Change in home prices over a year: 29.8%
The HAI, or Housing Affordability Index, compares the median price of a resale home in a market to the median family income. Real estate markets with HAIs above 100 are more affordable to buy, while cities with HAIs below 100 are more favorable for renting.

According to the most recent data, Phoenix’s HAI is 119. This means that for residents with a median household income, purchasing a median-priced home is still feasible. 19

Life satisfaction
The strong job market, low cost of living, and abundant sunshine all contribute to Phoenix’s ranking as the 67th best place to live. U.S. News & World Report ranked the Valley of the Sun as one of the best places to live and retire due to factors such as net migration and desirability. 20

Key statistics on quality of life:

U.S. News ranks Phoenix as the 67th best place to live and the 140th best place to retire, with an overall score of 6.2 out of 10.

Phoenix receives an A- overall niche grade from Niche.com, with high marks for public schools and nightlife.
Phoenix’s cost of living is 3% lower than the national average, with health care, goods and services, and housing being more affordable in comparison to the rest of the country.
The Phoenix Mountains Preserve, Tempe Town Lake, and the Desert Botanical Garden are among the city’s outdoor attractions.
Pro sports fans in Phoenix will find plenty to cheer for, from the NBA’s Phoenix Suns to the NFL’s Arizona Cardinals and others.
The top hospitals in the Phoenix metro area include Mayo Clinic Phoenix, Banner Boswell Medical Center, and St. Joseph’s Hospital and Medical Center.

Jean Simmons
Jean Simmons

Jean has spent her whole life in Phoenix and lives for the Local News

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