Arizona’s housing market is entering a new phase, marked by rising inventory, shifting renter behavior, and tightening margins for small landlords. Here’s what you need to know:
🔑 Market Snapshot
- Active Listings Surge: Phoenix metro active listings climbed 54.3% YoY as of April 2025—now over 23,500 homes for sale.
- Price Pressure: Median sold price per square foot dipped 2.4% YoY, settling at $258.28/SF.
- Longer Time to Sell: Average Days on Market rose to 53 days, up 20.5% YoY.
- Construction Continues: Building permits hold steady at 47,535 over the past 12 months.
🏠 Rental Market Trends
- Rental Supply Up: Active rental listings rose 20.5% YoY, now nearing 5,000 units.
- Rent Rises Slowly: Median rent per SF increased to $1.39, a modest 2.2% annual gain.
- Eviction Activity Accelerates: Evictions jumped 44% YoY, with nearly 6,000 filings last month in Maricopa County alone.
- Tenants Staying Longer: Average time to lease a property is now 31 days, up 19.2% YoY.
🔧 Property Management Shifts
- Investors Feeling the Pinch:
- 65% fear future regulations could threaten profitability.
- Maintenance/repairs are the #1 day-to-day pain point.
- Most investors still prefer to be hands-on—but nearly 1 in 3 now use a third-party PM.
- PMs Help Preserve Value:
- 85% of landlords who’ve used a PM believe they help reduce legal risk.
- Units managed by PMs stay vacant for fewer days on average.
- PMs are seen as most useful for repairs, tenant screening, and staying compliant with laws.
- Top Investor Priorities for 2025:
- Increase profit margins (36%)
- Upgrade properties (32%)
- Acquire more units (29%)
- Reduce costs (28%)