Phoenix Housing Market at a Glance
Median Home Price
$480,000
Median Monthly Rent
$1,850
Property Tax Rate
0.62%
Avg Home Insurance
$1,600/yr
Price-to-Rent Ratio: 21.6x (Lower ratios favor buying; higher ratios favor renting)
Phoenix-Specific Insights
- → Phoenix offers relatively affordable home prices with low property taxes and insurance costs.
- → Rapid population influx from California has driven 20%+ rent increases; buying may lock in costs.
Run Your Phoenix Scenario
Pre-filled with Phoenix's median data. Adjust to your situation.
Open Calculator with Phoenix Data →Key Factors for Phoenix Buyers
1. Down Payment Requirements
With Phoenix's median home price of $480,000, a 20% down payment is $96,000. Putting down less triggers PMI (typically 0.5–1.5% annually until you reach 20% equity).
2. Property Taxes
AZ's property tax rate averages 0.62%, which translates to roughly $248/month on a median-priced home. This is below the national average.
3. Tax Deductions
Mortgage interest is deductible if you itemize (must exceed standard deduction: ~$14,600 single, ~$29,200 married in 2025). Combined with AZ state taxes, itemizing may be worthwhile.
4. Opportunity Cost
If you rent and invest your down payment instead (e.g., S&P 500 averaging ~10% annually), you build wealth differently. The calculator models this trade-off month-by-month to find your break-even point.