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| | I know this reflection is coming a little later than usual, but before we dive into this month's crucial real estate insights, I wanted to take a moment to acknowledge something important. We just passed Memorial Day, and it's a profound reminder of the immense sacrifices made by the brave men and women who have served and continue to serve in our armed forces. Their dedication to our freedom and security is something we should never take for granted. Thank you to all who have served.
Now, let's get to the good stuff. May brought some interesting twists in the Phoenix market—from a surprising rise in foreclosures (but don't panic, I've got you covered), to a rental market shakeup where single-family homes are suddenly the hottest commodity. Plus, there's a big new law signed that could change the game for Arizona real estate, and some fresh insights on the office market in Chandler that you'll want to know.
So lets get into today's AZREi Newsletter
- Juan C Pesqueira |
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| | Market Snapshot🎯April 2025 |
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| | 📉 Foreclosures Are Up, But Calm the F* Down
Source: ResiClub
You've probably seen the headlines or scrolled past some influencer screaming "Foreclosure crisis incoming!" or "It's 2008 all over again!"
Let me save you some time: they're full of it.
Yes, foreclosures are up—40% year-over-year in Q1 2025. But that's still 13% below 2019. And mortgage delinquencies? Just 0.86%—lower than 2019 (1.00%) and way below 2016 (2.08%). This isn't a crisis. It's a slow return to normal.
📊 Quick Breakdown:Q1 2025 Foreclosures: 61,660 Q1 2019 Foreclosures: 71,040 Delinquency Rate 2025: 0.86% Delinquency Rate 2016: 2.08%
Meanwhile, "experts" like Grant Cardone predicted a crash 10 months ago. Still waiting, Grant.
The truth? These guys sell fear for views. But when you look at the actual numbers, it's just market noise. Not a meltdown.
💬 Final Thought
The housing market isn't collapsing—it's correcting. Don't let hype dictate your decisions. Talk to professionals who actually live in this market every day—not influencers with a ring light and an affiliate link. |
| | Phoenix's Rental Market Shift: Why Single-Family Homes Are the New Gold Mine
Renters in Phoenix are ditching apartments for single-family rentals (SFRs)—and investors are taking notice. 🏡 Key Trends: 6 in 10 new renters are moving from apartments to houses, seeking space, privacy, and flexibility. 3-bedroom homes are the most in-demand, offering room for offices, nurseries, and pets. Phoenix leads the nation in build-to-rent construction, with 13,000+ homes underway. Renting a house in Phoenix costs $1,114/month less than owning, making it a smart financial move. Pet-friendly rentals are booming—homes with yards and pet-friendly features attract top tenants.
📈 Investor Takeaway:SFRs aren't just a trend—they're a long-term shift in the rental market. With high demand, longer leases, and strong returns, Phoenix is the place to invest. |
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| | Phoenix Renters Are Losing $7K a Year to Their Commute—Here's How to Get That Money Back
Phoenix was built for cars, but that convenience comes at a cost—$7,000 per year, to be exact. A new analysis shows that renters who swap their car for public transit could save over $6,300 annually, which is 11% of the median renter's income—essentially a full month's paycheck.
🚗 Driving vs. Riding—The Cost Breakdown: Car commute: $7,000+ per year Public transit: $768 per year Potential savings: $6,300+
So why don't more people use transit? Only 3.4% of Phoenix renters rely on it, largely because the city's infrastructure is still catching up. But change is happening—especially in Tempe's Culdesac community, the first fully car-free neighborhood in the U.S.
🏡 Real Estate Takeaway:Your commute directly impacts your housing costs. Living near transit, in central Phoenix, or in a walkable community may cost more upfront but could save thousands over time—both financially and emotionally. |
| | Game Changer for Arizona Real Estate: Governor Signs HB 2110 into Law
Governor Katie Hobbs has signed HB 2110 into law, marking a significant shift in Arizona's approach to real estate development.AriZona Real Estate insider
🔑 Key Highlights:Adaptive Reuse Simplified: Cities with populations over 150,000 (like Phoenix, Tucson, Mesa, Chandler, and Scottsdale) must now allow the conversion of underutilized commercial buildings into residential units without requiring rezoning or public hearings.AriZona Real Estate insider+1Arizona Legislature+1 Objective Standards Required: Municipalities are mandated to establish clear criteria for these conversions, ensuring consistency and transparency in the approval process.12 News+2Arizona Legislature+2Arizona Legislature+2 Affordable Housing Mandate: At least 10% of the new units must be designated for moderate- or low-income residents, remaining affordable for a minimum of 20 years.LegiScan+6Arizona Legislature+6LegiScan+6
🏘️ Implications for Stakeholders:Investors & Developers: This law opens up new opportunities to repurpose vacant commercial spaces into residential properties, potentially accelerating project timelines and reducing bureaucratic hurdles.AriZona Real Estate insider
Communities: Expect revitalization of dormant commercial areas, increased housing supply, and enhanced urban density without expanding city boundaries.
Considerations:Exclusions Apply: Properties near airports, military bases, or within historic districts may be exempt.Height Restrictions: Developments near single-family homes are limited to two stories within 100 feet.
For a deeper dive into HB 2110 and its potential impact, check out the full article here:
🔗 Game Changer for Arizona Real Estate: Governor Signs HB 2110 into Law |
| | The U.S. Housing Market Has Officially Flipped: Welcome to the Buyer's Market!
For years, sellers dominated real estate, but now, buyers have the upper hand. According to Redfin, the U.S. market has 490,000 more sellers than buyers, the biggest gap since 2013.
What's Causing the Shift?High mortgage rates (~6.73%) keeping buyers cautious. Economic uncertainty affecting consumer confidence. Sellers holding onto unrealistic price expectations, leading to longer listings.
Top Buyer's MarketsMiami, FL: 197.7% more sellers than buyers (Median price: $574K, ↑5.6% YoY) Austin, TX: 124.1% more sellers (Median price: $434K, ↓3.0% YoY) Phoenix, AZ: 100.6% more sellers (Median price: $452K, ↓2.1% YoY)
What Buyers Should Do Now✔ Start looking—more listings mean better choices. ✔ Negotiate wisely—price cuts and seller concessions are more common. ✔ Use contingencies—inspection periods and closing cost help are back. ✔ Act strategically—the window for buyer-friendly conditions won't last forever.
The balance has shifted—if you're considering buying, now might be the best opportunity in years. |
| | Chandler Takes the Lead — PHX Office Market Q1 2025 (Colliers Report)
The latest Q1 2025 Phoenix Office Market Report from Colliers just dropped, and here's what you need to know.
📊 Quick Hits from theReport: Market absorption: Chandler leads the way: Vacancy rate: Sublease space: Rental rates: Avg asking: $29.68/SF (slight dip) ClassA rents up to $33.85/SF Camelback Corridor tops the chart at $42.12/SF
New construction: Conversions on the rise: Investment sales: $229Mtotal, down QoQ but up 21.4% YoY Notable deals: Copper Point ($36M), Amkor HQ ($22M)
🔮 What It Means Chandlers on fire 🔥 — major tenant activity, high leasing momentum Class A office space still has pricing power Conversions & owner-user deals are the new wave Deals are happening, but moving slower due to economic uncertainty
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