Phoenix’s housing market is undergoing significant transformations, influenced by fluctuating home prices, ambitious development projects, and concerted efforts to address housing shortages.
Current Market Trends
As of early 2026, the Phoenix housing market has experienced a slight decline in home values. According to Zillow, the average home value in Phoenix is $410,169, reflecting a 2.7% decrease over the past year. Homes typically go pending in around 26 days, indicating a moderately paced market. Source
Similarly, Redfin reports a median sale price of $461,300, down 2.3% year-over-year, with homes selling after an average of 62 days on the market. Source
Addressing Housing Shortages
The Common Sense Institute highlights a significant housing shortage in Arizona, identifying an immediate need for approximately 56,000 housing units and a long-term deficit of around 110,000 homes. This shortage is driven by high housing prices, elevated interest rates, and supply constraints, making it increasingly difficult for individuals such as renters, people living with others, and homeowners to find suitable housing. Source
Development Initiatives
In response to these challenges, Phoenix has embarked on several development projects aimed at increasing housing availability:
The Moreland
In February 2026, the City of Phoenix broke ground on The Moreland, a transformative 237-unit housing community in downtown Phoenix. This project aims to provide much-needed affordable and workforce housing, with construction anticipated to be completed in two phases by December 2027. Source
Girasol Apartments
In November 2024, the city initiated the Girasol Apartments project, replacing 145 outdated public housing units with 364 new affordable and market-rate apartments in the Edison-Eastlake Community. This development is part of a broader effort to revitalize the area and provide accessible housing options. Source
Teravalis in Buckeye
In November 2025, the massive Teravalis housing development opened in Buckeye, Arizona. This master-planned community is projected to eventually house up to 300,000 residents in 100,000 homes, addressing the growing housing demand in one of America’s fastest-growing cities. Source
Looking Ahead
While Phoenix’s housing market faces challenges, the city’s proactive development initiatives and strategic planning aim to create a more balanced and accessible housing environment for its residents. Staying informed about these trends and projects is essential for those navigating the evolving landscape of Phoenix’s real estate market.