Buying in Phoenix: the full guide

What homes cost

We could not open a neutral source for sale prices in Phoenix, Scottsdale, Tempe or Mesa individually, so we give the one that is reliable and current. The median listing price across the Phoenix, Mesa and Scottsdale metropolitan area was $475,000 in September 2026, unchanged from August and down from $499,000 in September 2025, according to Realtor.com data published by the Federal Reserve Bank of St. Louis. That is about 4.8% lower on the year, by our arithmetic. Asking prices are not what homes finally sell for, so treat the figure as a guide to the market, not a quote.

Inside the area, prices differ a great deal between the older central neighbourhoods, Scottsdale, Tempe near the university and the newer estates to the south-east. Ask a local agent for recent sold prices on the exact street, not a city average.

Property tax and the limited value

Arizona property tax is low by US standards. The Tax Foundation puts the effective rate in Maricopa County at 0.44% of home value, using its 2026 data. On a $475,000 home that is roughly $2,090 a year by our arithmetic, though the real bill depends on the city, school district and any special districts.

What is unusual is how the tax base is set. Each parcel has a full cash value, which follows the market, and a limited property value, which is what is actually taxed. The Maricopa County Assessor explains that for most parcels the limited value rises by 5% a year, and cannot exceed the full cash value. The county's guide also says a change in the occupant of a single-family residence is not by itself a change in use. In other words, a sale does not automatically reset the taxable value to your purchase price, as it does in some other states. A major rebuild, a split or a few other events can trigger a recalculation, so ask the county for the parcel's current figures.

Buying a home in Arizona

Arizona is generally described as an escrow state: an escrow or title company holds your deposit and the documents, and records the deed once everything is in order. If you are used to a notary completing the sale in Europe, this is the closest equivalent, with a company rather than a public official in the middle. You can still hire your own attorney, and a buyer based overseas has good reason to.

The standard purchase contract gives the buyer an inspection period in which to inspect the home and walk away or ask for repairs. Confirm the number of days in the contract you sign, because the clock starts on acceptance. The financing side works as elsewhere in the country, and the timeline guide sets out the steps.

The 2026 baseline conforming limit is $832,750 for a one-unit home, and most counties use it. Prices in the Valley mostly sit well below that, so a conventional loan is normally in reach for a resident borrower. Check the Maricopa County figure in FHFA's county lookup, and see what to do without a US credit score.

Water

Arizona buyers meet water in two forms. The first is the supply to your tap. Phoenix says its drinking water comes 40% from the Colorado River through the Central Arizona Project, 58% from the Salt and Verde rivers and 2% from groundwater. The city also says it has invested in storage and recovery wells, and that customers can expect reliable service as the federal Colorado River framework outlines potential cuts. It remains in Stage 1 of its Drought Management Plan and could move to Stage 2 by the end of 2026, which could bring a drought surcharge. For a household, the likely effect is a higher bill, not a dry tap.

The second is the legal test for new development. In the Phoenix Active Management Area, a developer must show a 100-year water supply. Providers that hold a Designation of Assured Water Supply, which includes Phoenix and the major cities, may continue to serve new subdivisions. Since the state's 2023 groundwater model projected a shortfall of 4.86 million acre-feet by 2121, a new subdivision outside a designated provider can no longer rely on local groundwater, according to the Arizona Water Blueprint at ASU. These rules have been changing and challenged, so check the current position with the developer or a lawyer. For a new-build, ask which provider supplies the address and whether it holds a designation.

Heat, storms and insurance

Phoenix recorded 37 days at 110 degrees Fahrenheit or hotter in 2025, which the National Weather Service ranked as the second-warmest year on record there. For a European, that means cooling is a major running cost and the air conditioning unit is a major component of the home. Ask the seller for its age, its service history and twelve months of electricity bills. A home left empty over the summer still needs a plan.

For insurance, FEMA says most homeowners policies do not cover flood damage. Flood needs its own policy, normally with a 30-day waiting period unless a lender requires it. Monsoon storms can bring wind, hail and flash flooding, and the Maricopa County Flood Control District says that flooding happens regularly in the county despite the desert setting. Get quotes before you make an offer, ask whether wind and hail carry a separate deductible, and look the address up on the county's floodplain map. Lenders add the insurance premium to your monthly cost, so a high quote affects what you can borrow.

Homeowners' associations

Much of the Valley's housing sits in a planned community with a homeowners' association, which charges assessments and enforces covenants on everything from paint colours to parking. Ask early for the association documents, the current assessment and any special assessment. A condominium adds its own budget and reserves.

On letting, the association can be stricter than the city. Arizona law lets a member rent out a property unless the declaration prohibits it, and requires the member to follow the declaration's rental time period restrictions. If you plan to let by the week, read those restrictions before the inspection period ends.

If you plan to let it

Arizona is more permissive than many places. State law says a city or town cannot ban short-term or vacation rentals outright, nor restrict them solely because they are rentals. It does allow a permit or licence with a fee capped at $250, an emergency contact, liability insurance of at least $500,000, the permit number in advertisements and notice to neighbours. Fines rise from $500 for a first violation to $3,500 or more for a third, or the equivalent of one to three nights' rent if that is greater.

Tempe and Mesa have their own procedures, so check the city before you buy. Arizona tax on rental receipts is a separate matter: ask the Arizona Department of Revenue or your adviser which rate applies.

Tax for non-residents

Arizona taxes income at a single flat rate, which the Tax Foundation lists as 2.50% for 2026. How that applies to rent from an Arizona property owned by someone living in Europe needs checking on the Arizona Department of Revenue site or with an adviser.

The federal position is as for the rest of the country. The IRS says rent from US property owned by a nonresident alien is taxed at 30% of the gross, or a lower treaty rate, unless you elect under section 871(d) to be taxed on the net. For a rental that carries a mortgage and running costs, the election usually matters a great deal. Once made, you file Form 1040-NR every year until it is revoked. Selling later brings US withholding rules for foreign sellers, so ask your closing agent about them early.

Getting home

Phoenix Sky Harbor's own list of destinations names two European routes for 2026: London Heathrow, with American Airlines and British Airways, and Paris Charles de Gaulle, with Air France. Every other European city means a change of plane. Check the airport's list for seasonal additions before you rely on it, and compare the routes with your closest airport in Europe.

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