Phoenix Real Estate: Key Trends and Insights for 2026 Investors

Phoenix has earned a spot among the top real estate markets to watch in 2026, ranking 10th in the latest annual outlook by PricewaterhouseCoopers (PwC) and the Urban Land Institute (ULI). This ranking reflects strong confidence from over 1,700 real estate professionals across North America. What makes Phoenix stand out, and what should investors, developers, and business leaders focus on as the city moves toward 2026? This post breaks down the key factors driving Phoenix’s real estate momentum and highlights opportunities to watch.

What the Ranking Reveals About Phoenix

Being ranked 10th among markets to watch signals a positive outlook for Phoenix’s real estate sector. The PwC/ULI report evaluates markets based on several criteria:

• Demographic growth: Phoenix continues to attract new residents, adding 85,000+ people in 2024 alone and more than 460,000 since 2020.

• Job market strength: Arizona's employment base continue to expand, with Phoenix posting 2.6% year-over-year job growth, outpacing the national average, and the state projected to add 486,000+ jobs by 2023.

• Supply constraints: Maricopa County faces an estimated 270,000 unit housing shortage, creating structural scarcity that supports long-term rent and value growth.

• Sector-specific potential: High-growth industries including healthcare, construction- are projected to add over 137,000 jobs in the next decade, driving demand for targeted real estate investment.

  
  

Among Western U.S. markets, only two cities made the top 20, with Phoenix being one of them. This highlights its unique position in a region where growth is often limited by geography and regulation.

Why Phoenix Is Gaining Attention

Several factors contribute to Phoenix’s appeal as a real estate market heading into 2026:

Growing Population and Migration Trends

Recent trends point 1.00- 1.2% annual population growth, which puts Arizona in the neighborhood of 7.66-7.88 million residents in 2026. Phoenix attracts both domestic and international movers. Compared to coastal metros, housing remains relatively affordable, which draws people seeking better value. The city’s warm climate and business-friendly policies add to its appeal. This steady influx of residents fuels demand for housing, retail, and office space.

Expanding Job Market and Business Activity

Phoenix benefits from corporate relocations and expansions. Its economy includes strong sectors like technology, agriculture, and services. As companies grow and hire more workers, the need for commercial real estate rises. This trend supports development in office buildings, industrial parks, and retail centers.

Land and Supply Limitations

Phoenix faces natural and regulatory limits on growth. Water availability and desert land use restrictions prevent unchecked expansion. These constraints reduce the supply of new housing and commercial space, which can increase property values and rental rates. Investors often find markets with limited supply more attractive because scarcity supports long-term returns.

The PwC/ULI report highlights several sectors gaining momentum in Phoenix:

• Data centers: Rising demand for cloud services drives growth.

• Senior living: An aging population increases need for specialized housing.

• Self-storage: Population growth and housing trends boost demand.

• Industrial and multifamily housing: Both sectors benefit from economic and demographic trends.

  
  

Phoenix’s climate, infrastructure investments, and demographic profile position it well to capitalize on these opportunities.

What Investors and Developers Should Watch

To make the most of Phoenix’s real estate market, stakeholders should monitor several key areas:

Infrastructure and Transportation Projects

Ongoing investments in transportation and utilities will shape where growth occurs. Improved transit options can increase property values in connected neighborhoods. Staying informed about public projects helps identify emerging hotspots.

Regulatory Changes and Land Use Policies

Water management and land use regulations will influence supply constraints. Changes in zoning or environmental rules could open new development opportunities or tighten supply further. Understanding local policies is crucial for planning projects.

Shifts in Tenant Demand

As Phoenix’s economy diversifies, tenant needs may evolve. For example, tech companies may seek flexible office space, while seniors require accessible housing. Tracking tenant preferences helps developers tailor projects to market demand.

Final Thoughts on Phoenix’s Real Estate Outlook

Phoenix’s ranking among the top markets to watch in 2026 reflects solid fundamentals: strong population growth, expanding job opportunities, and supply constraints that support property values. Investors and developers who understand these dynamics and stay alert to infrastructure, regulatory, and tenant trends will be well-positioned to benefit.