Open & Agile Smart Cities Network

Average advertised asking rents in metro Phoenix declined 3.1% year over year to about $1,550 as of April, according to Yardi Matrix’s June 2025 metro report. New supply pressured stabilized occupancy to roughly 93% (down ~0.4 percentage points year over year). Losses slowed to a 0.2% decline on a trailing three-month basis, indicating moderating rent compression into late spring. A January update similarly showed occupancy near 93.2% with rents down on a trailing basis, reinforcing persistent softness through late 2024. Multi-Housing News ranked Phoenix among the weakest large metros for 2025 rent performance at roughly −3.0% amid outsized deliveries. Wealth management implications include underwriting higher vacancy and concession assumptions and stress-testing DSCR for value-add assets. Tax relevance includes Arizona’s January 1, 2025 end of city TPT on long-term residential rentals, trimming operating friction for hold-to-rent strategies. Legislative context on short-term rentals remains distinct and city-specific. Value stability improves where operators deploy efficiency retrofits that lower utility intensity. Smart-city and grid upgrades that stabilize cooling loads and reliability further support operating margins over long hold periods.

The S&P CoreLogic Case-Shiller Phoenix Home Price Index stood at 329.03 in June 2025 (Jan-2000=100), slightly below readings from March–May, indicating a modest mid-year leveling after earlier gains. The series’ June update, released August 26, 2025, provides a consistent gauge for inter-market comparisons and portfolio benchmarking. Phoenix-area consumer prices increased 0.9% over the past two months and 1.4% over the year to August 2025, marking a comparatively soft inflation backdrop for mortgage affordability calculations. National CPI rose 0.4% in August and 3.6% over 12 months, framing local price dynamics against U.S. aggregates. Wealth managers can model purchasing power effects as inflation normalizes while rates drift. Tax indexing effects remain modest at these CPI rates. From a regulatory stance, middle-housing and ADU frameworks interact with pricing by altering small-lot supply elasticity. Value stability benefits from diversified product pipelines rather than single-segment exposure. Sustainability retrofits gain traction as inflation cools and carrying-cost math improves.

Phoenix Metro reported a median sales price of $470,000 in August 2025, marking a 3.8% year-over-year increase as active inventory remained 23% below the five-year average. The market showed 2.4 months of supply, compared with a balanced range of 4–6 months, with average days on market falling to 36 from 44 one year earlier. Pending sales rose 6% month-over-month, while closed sales volumes were down 2% year-to-date, reflecting supply limits. Such conditions sustain asset appreciation important to portfolio managers, with tax assessments likely to adjust upward in Maricopa County. Arizona Department of Real Estate recently reaffirmed rules on disclosure timing for permit-based purchases, ensuring investor compliance. Limited water resources flagged by ADWR add a constraint relevant to long-term resilience, while smart-growth ordinances in Phoenix favor higher-density approvals for sustainable urban form.

Buckeye, Queen Creek, and Maricopa City are experiencing among the fastest housing stock growth rates in Arizona, with Buckeye permitting over 2,700 new units in the past year. Median home values in these areas remain more accessible compared to Phoenix-Metro averages, and the regions are drawing significant first-time and move-up buyers. The relative youth of the housing stock offers favorable depreciation schedules for investment property holders, while special economic zones and local incentives present further tax advantages. Local authorities are streamlining rezoning and land use processes to attract sustainable development. With extensive undeveloped land and planned utility expansions, these cities are well-positioned for future-proof growth and enhanced resilience.

The Eastmark community in Mesa continues expanding with neighborhood amenities including green space, skate park, community center, school infrastructure and diverse housing in one of Arizona’s top-selling master‑planned neighborhoods.

Portfolio strategies tied to master‑planned residential see strong retention and predictable HOA‑driven tax flow. Zoning ensures cohesive residential, educational and recreational integration. Stable delivery phases support capital preservation. Community layout promotes walkability, water‑efficient landscaping and park‑focused sustainability.

‍

Construction continues on a 500,000‑sq ft Verrado Marketplace power centre at the I‑10 and Verrado Way interchange in Buckeye, integrating retail, service and dining amenities within Verrado master‑planned community.

Retail-focused portfolios leverage tenant diversity and stable lease incomes. Additional sales‑tax revenue flows into Buckeye’s budgets. Approved under regional retail zoning and HOA guidelines. Serves long‑term suburb growth and lifestyle demand. Design includes pedestrian amenities and parking efficiency aligned with green retail planning.

‍

At Central & Thomas/Road, the 16‑story Edith tower (~206 ft) has received approvals for 2025 construction in Phoenix’s Uptown district, offering high‑density rental units above retail.

Such multifamily investment supports stable cash flows and capital preservation in core urban zones. Sales‑tax and property assessments uplift municipal tax base. Regulatory frameworks include urban rezoning and infill density incentives. Rental demographics support future-proof resilience, and compact development reduces sprawl with sustainability elements like energy-efficient envelope and urban walkability.

‍