Phoenix has long been recognized as the place to go if you want to buy a house at a reasonable price. With year-round sunshine, stunning desert landscapes, vibrant southwestern culture, and cuisine, the Phoenix metroplex is one of the most sought-after cities in America for relocation. Many Phoenix neighborhoods offer inexpensive housing and strong employment prospects to those who are priced out of more expensive cities.
Although Phoenix is becoming increasingly costly as people move in from other American cities and towns, there are still many interior areas of town and outlying suburbs where you can buy a house for less than $500,000. First, we’ll show you the prospect of finding a cost-efficient home within the local real estate market followed by some of the best affordable neighborhoods to call home.
Phoenix is a Bargain Compared to Other Cities
Living in Phoenix is generally cheaper than most major urban hotspots. As of February 22, 2022, the median home sales price for a single-family home in Phoenix was $440,000 compared to the same time last year, at $340,000.
|City||Median Home Sales Price|
|1. San Francisco||$1,325,000|
|2. Los Angeles||$925,500|
|3. New York||$818,888|
|5. Washington D.C.||$647,000|
|9. Las Vegas||$395,000|
|Source: Redfin, The Cromford© Report; February 22, 2022|
Though the median price jumped $100,000 in a year and is expected to continue climbing, that’s even more reason to seriously consider relocating to Phoenix before you eventually get priced out. Also, keep in mind that the average interest rate on a 30-year fixed home loan rose an entire percentage point from 4.12% in February compared to 3.11% in January. Taking advantage of home sales prices and mortgage rates while they’re still attainable is key.
Compared to other more expensive cities, Phoenix’s median home sales price sits under the $500,000 mark and ranks seventh with a purchase price that’s more of a bargain than the six other cities that rank above it.
Phoenix Affordable Housing Supply
As you can imagine, the high demand for housing in the Valley since the start of the pandemic has led to fewer homes available for sale, but not across the board. The analysts at The Cromford© Report note that most of the missing supply is at the high end of the luxury housing market, rather than in the affordable suburbs. Though competition is still high, these bargain burbs have more supply now than they did last year. As of February 22nd, there were 2,225 active listings in Maricopa County for homes listed under $500,000, just 10 shy of what was available on the market this same time last year.
Affordable Phoenix Suburbs
There are many sprawling suburbs that offer homes at reasonable prices, nestled in safe and convenient locations, with access to outdoor activities and convenient amenities many buyers desire. Here are six suburbs that are great places to make a home:
Median Home Sales Price: $419,950
Located at the base of South Mountain, the Ahwatukee Foothills is a suburb of Phoenix in the East Valley that borders Guadalupe and Tempe. Homes in this area are close to good schools, shopping, and freeway access.
Median Home Sales Price: $490,000
Known as the Tech Hub of Phoenix, Chandler is in the Southeast Valley. Many tech companies such as PayPal, Intel, and GoDaddy set up shop here, making it one of the fastest-growing areas in the Phoenix metro.
Median Home Sales Price: $410,000
Deer Valley is an urban village in north Phoenix that borders Glendale and Peoria with close access to schools, shopping, and entertainment. You can find well-maintained homes and large lots, spacious for growing families.
Median Home Sales Price: $427,000
The third-largest suburban city in Arizona, Mesa sits in the East Valley of the Phoenix Metro. Here you’ll find great school districts, family-friendly communities, and it’s easy to frequent Chandler and downtown Gilbert for more shopping, and dining options. Plus, Mesa also has its own airport!
Median Home Sales Price: $419,000
This affordable historic district is culturally and architecturally rich. Garfield is within walking distance to downtown, making it a prime place for local entrepreneurs to establish startups. Spurred by economic growth, many studios, businesses, and restaurants call Garfield home, and you can too – especially if you love remodeling historic fixer-uppers.
Median Home Sales Price: $458,000
Tempe is filled to the brim with sprawling urban areas, is extremely bicycle-friendly, walkable, and one of the most affordable areas in the metro area to live in. Tempe is home to Arizona State University, one of the best schools in America, and is also one of Tempe’s largest employers. Plus, Tempe has great public transportation and is conveniently located to major highways.
Find Your Forever Home with Halpern Residential
Every day, we help people like you relocate and we work hard to help you find a good neighborhood that speaks to you. The metro area is made up of numerous diverse neighborhoods and suburbs that create the beautiful tapestry of culture and experiences that make Phoenix the desirable destination it is today. If you’re interested in buying a home in Phoenix without breaking the bank, give us a call and we’ll help you find your footing in one of the most beautiful places in America.