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Arizona Real Estate Market Trends 2026

434000

Median Price
Vacancy Rate %

7.8

Population

7431344

Population Growth %

1.6

Home Price YoY % Change

1.8

Average Cap Rate %

5.8

Rent Yoy % Growth

0.5

Median Rent

1280

Market Overview

Arizona's real estate market in 2026 features a median home price of $434,000, reflecting a +1.8% year-over-year change. The rental market shows stabilizing rents with a median one-bedroom at $1,280/month and two-bedroom at $1,550/month (+0.5% YoY). With a population of 7.4M that is rapidly growing, Arizona represents a mid-range market with strong rental demand. The vacancy rate of 7.8% is near the national average (national: 7.2%). Top investment cities include Phoenix, Tucson, Mesa, Scottsdale, Chandler. Arizona is considered landlord-friendly in terms of rental regulations.

Top Investment Cities

Phoenix, Tucson, Mesa, Scottsdale, Chandler

Investment Outlook

Arizona's market offers an average cap rate of 5.8%, typical of mid-range markets. Strong population growth supports long-term appreciation potential, offsetting lower initial yields. The high rental demand in Phoenix and Tucson provides the strongest opportunity for consistent occupancy and rent growth.

Key Takeaways for 2026

Median home price: $434,000 (+1.8% YoY)
Average rent: $1280-$1550/mo
Cap rate: 5.8%
Vacancy: 7.8%
Population growth: +1.6%
Demand: High
Regulation: Landlord-Friendly

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