What is the Average Home Price in Phoenix?

Don’t let the average home price of $400,426 in Phoenix scare you off from this gorgeous city. Nestled in the arid yet picturesque state of Arizona, this desert city offers many outdoor activities and a family-friendly environment.

Suppose you watched “Alice” as a kid. In that case, you probably recall that Mel’s Diner on the highway in Phoenix always offered a tasty meal, hard-working Alice and her smart son, Tommy, plus a fun-loving gang of co-workers – fry cook Mel, ditzy waitress Vera, and smart-aleck waitress Flo. While that diner doesn’t exist, Phoenix residents tend to behave in that friendly manner.

What the TV show never revealed – the utterly gorgeous desert setting – you can experience on vacation. Many people who travel to Phoenix choose it as their relocation spot, selecting one of the lovely Phoenix Arizona homes for sale. That, plus housing starts delays during COVID-19, caused an increase of nearly five percent in the city’s home values in the past year alone, according to Zillow.

Can you still find good housing deals?
Homes with reasonable prices still abound in Phoenix. You need home-buying savvy to find them, though, or a willingness to commute. You can find a short commute option, but targeting the suburbs first works best for finding good deals.

A quick check of Zillow shows hundreds of options for less than $150,000. About two-thirds of these fall into the for sale by owner (FSBO) category.

There’s no one neighborhood where you can find these homes. Homes in every area of Phoenix sell at this reasonable price point.

What salary do you need to live in Phoenix?
According to the Massachusetts Institute of Technology’s Living Wage project, which calculates the living wage in every state in the US, in Phoenix, a single person would need to earn $17.78 per hour to meet the living wage standard. A household with one child would need to earn $34.87 per hour.

The MIT scale calculates the wages needed for a single person with and without children and households with two adults and no children up to three children. It provides separate wage projections for households where one adult and two adults work.

According to Salary List, Phoenix residents earn a median income of $73,059. That’s more than double the minimum amount that MIT calculates as a living wage in the area.

Why are home prices in Phoenix so high?
Prices on houses in Phoenix, Arizona, have risen in the past few years, but good deals still abound. Every city has mansions, and Phoenix mansions cost more than typical homes. You can find many starter and mid-sized houses in Phoenix.

As discussed above, the city offers a ton of affordable home options. Whether you want a single-family home, a modular home, or a condo, Phoenix offers many affordable options.

Looking at it from the perspective of a future homeowner, while finding a great buy in Phoenix might take some savvy shopping, once you buy, you can know that your home will hold value and probably increase in value. Since 2000, the median home price in the area has risen by 216 percent, according to Time. Buying a home in Phoenix makes good sense from an investment standpoint. Last year, the median home price in the city rose by one-third.

Is moving to Phoenix a good idea?
If you love dry heat and the great outdoors and want to purchase a home in an area and retire there someday, Phoenix could be your city. The Valley of the Sun offers plenty of outdoor activities, and many national parks surround this desert city. It offers attractions you would expect from a major city, such as the Phoenix Zoo and Odysea Aquarium.

Since home prices shot up, many remote workers moved here when COVID-19 caused employers to switch from in-office workers to telecommuting. That means many individuals don’t work for local employers.

Local employers typically pay above the living wage, hence the healthy median income of Phoenix residents. In fact, while Phoenix residents earn a median income of $73,059, US residents earn a median income of $70,181, according to Don’t Quit Your Day Job (DQYDJ), a finance and investing platform.

What should I know before moving to Arizona?
Every state has its advantages and disadvantages. Let’s clear up some myths about Arizona that people tend to list under the disadvantages category.

Myth: Arizona Has No Water
Arizona does not experience a water shortage. The state’s government recognizes its natural arid climate and plans around it. Before a building project can start in the state, the builder must provide that 100 years’ worth of water already exists for the residents’ use.

Myth: Buying a House Costs More Than Renting
When you purchase a home, you accrue an ownership value known as equity, starting at zero and reaching 100 percent when you make the final mortgage payment. You can borrow against your equity or take out a home equity line of credit (HELOC) if you want to make home improvements.

Mortgage payments typically cost about half of what rent does. That’s true in Phoenix, just as in the rest of Arizona. The typical rent in Phoenix costs $1,380 for a one-bedroom apartment. According to Apartment Guide, the median rent in the city costs $1,749. The average mortgage payment in Phoenix costs $909 per month, a significant saving.

Fact: Phoenix Has Dust Storms
While the rest of the country lives for its gorgeous thunderstorms, residents of Phoenix prepare to photograph haboobs. The weather event consists of wind moving desert dust in straight-line or cyclonic motion. It does not reach a tornado’s epic proportions but looks remarkable.

They occur every few years. The “damage” wrought usually consists of needing to power wash the house and take the car to the car wash.

Home Shopping in Phoenix
Let ITSSOLDAZ help you locate the ideal Phoenix home for you. Contact us today to find a reasonably priced home in Arizona or to sell your Arizona home quickly and without hassle.