By Ethan Faverino |
Arizona homeowners and prospective buyers are experiencing a cooling housing market, with the state ranking third lowest in the nation for house price growth in the first half of 2025, according to a new study by Portland Real Estate.
Median home prices in Arizona rose by just 3% from $481,388 in January to $497,500 in June, placing the state’s housing costs just 9% above the national average of $457,183.
The study, which analyzed home sale data from Realtor.com across all 50 U.S. states, highlighted a significant shift in the national housing landscape.
While states like Michigan (22% increase) and Ohio (18% increase) led the nation in price growth, Arizona’s modest 3% rise ties with Utah, Delaware, and Mississippi for the third-lowest growth.
Only Florida (1%) and Hawaii (-5%) saw smaller changes in home values.
“This represents a significant shift from the pandemic and post-pandemic years, when states like Florida, Arizona, and Utah dominated price growth charts,” said a Portland Real Estate spokesperson. “What we’re seeing now is likely the result of affordability concerns driving buyers to previously overlooked markets where housing remains relatively affordable despite recent increases.”
Nationally, the study reveals Michigan, Ohio, Rhode Island, Connecticut, and Virginia are the top-ranked states, accounting for over 40% of all prices increases nationwide.
For Arizona residents, this slower growth could signal a more stable market, offering relief to first-time home buyers and those looking to upgrade. Despite the modest increase, Arizona’s median home price remains above the national average, but the cooling trend could mean potential stabilization after years of rapid appreciation.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
