6 Types Of Homes Arizona Agents Say Will Drop In Price And 6 Destined To Rise Fast

The Arizona real estate market is constantly shifting, creating both challenges and opportunities for buyers and sellers. Local real estate agents have identified specific property types that may soon become more affordable, while others are expected to see rapid price increases.

Understanding these trends can help you make smarter decisions about when to buy or sell in the Grand Canyon State.

1. Luxury Mansions Over $3 Million

The ultra-luxury market is cooling off across Arizona. High interest rates have shrunk the buyer pool for these extravagant properties, forcing sellers to adjust their expectations.

Many mansions that once sold within days of listing now sit for months without offers. I’m seeing price reductions becoming more common, especially in areas like Paradise Valley and North Scottsdale where inventory has increased significantly.

2. Golf Course Communities

Golf-centric neighborhoods are losing their appeal to younger generations who prefer different recreational amenities. The maintenance costs associated with these properties continue rising while demand decreases.

Water concerns in our desert climate also impact these communities negatively. I’ve noticed properties in developments like Sun City and Leisure World staying on market longer than in previous years, with eventual sales often below asking price.

3. Outdated Luxury Condos

Older high-end condos with dated amenities are struggling to maintain their value. Buildings constructed in the 1990s and early 2000s often lack the modern features today’s luxury buyers expect.

Energy inefficiency further decreases appeal as utility costs climb. Many of these units in places like Old Town Scottsdale require significant updates to kitchens and bathrooms, making them less attractive compared to newer options with smart home technology and contemporary designs.

4. Remote Rural Properties

Homes in isolated areas far from employment centers are falling out of favor. The post-pandemic return to office work has reduced demand for these distant retreats that gained popularity during lockdowns.

Rising fuel costs make long commutes increasingly expensive. Properties in areas like Kingman or distant parts of Pinal County that lack nearby amenities are seeing price reductions as sellers struggle to attract buyers who now prioritize convenience over isolation.

5. Mega-Sized Family Homes

Massive 4,000+ square foot properties built for large families are becoming harder to sell. Changing demographics and smaller household sizes mean fewer buyers need five or six bedrooms.

The energy costs to heat and cool these sprawling homes in our extreme climate create sticker shock. I’m finding these oversized properties in areas like Gilbert and Chandler often require price adjustments before attracting serious interest, especially as building costs make new construction of this size prohibitively expensive.

6. Non-Updated Mid-Century Homes

Vintage properties requiring major renovations are seeing price drops. While mid-century designs remain popular, homes needing complete electrical, plumbing, or HVAC overhauls deter many buyers in today’s market.

Construction costs have skyrocketed, making renovation budgets expand beyond what many are willing to invest. Properties in older neighborhoods like Central Phoenix or parts of Tucson that haven’t been updated since construction often sell below asking price as buyers calculate the additional investment required.

7. Modern Desert Minimalist Homes

Contemporary homes embracing desert-adapted design are commanding premium prices. These properties feature large windows framing mountain views while minimizing exposure to harsh afternoon sun.

Thoughtful orientation and overhangs create natural cooling. The aesthetic combines clean lines with natural materials like concrete, local stone, and metal accents. Buyers are willing to pay top dollar for these sustainable designs in areas like North Scottsdale and Cave Creek where the architecture harmonizes with the stunning desert landscape.

8. Walkable Urban Condos

Condominiums in pedestrian-friendly urban centers are seeing strong appreciation. Young professionals and empty nesters alike are drawn to the convenience of living within walking distance of restaurants, shops, and entertainment.

The scarcity of these properties drives competition among buyers. Units in downtown Phoenix, Tempe near ASU, and Old Town Scottsdale command premium prices and often receive multiple offers. The trend toward urban living continues strengthening as people prioritize experiences over commuting time.

9. Smart Homes With Solar Systems

Energy-efficient properties with integrated technology are rapidly appreciating. Homes equipped with solar panels, smart thermostats, and battery storage solutions offer significant utility savings in our sun-drenched climate.

These features provide protection against rising energy costs. Buyers increasingly view these investments as necessities rather than luxuries. I’ve seen properties in communities like Verrado and Eastmark with these features sell faster and for higher prices than comparable homes without energy-efficient technology.

10. Smaller Luxury Lock-and-Leave Properties

Compact, high-end homes offering low maintenance living are seeing strong demand. These properties appeal to affluent retirees, seasonal residents, and busy professionals who want quality without the upkeep of larger estates.

Security features and concierge services add significant value. Boutique developments in North Scottsdale, Biltmore area, and parts of Tucson offering these benefits are experiencing rapid price growth. The combination of luxury finishes in manageable spaces creates the perfect formula for today’s lifestyle-focused buyers.

11. Homes With Accessory Dwelling Units

Properties featuring separate guest quarters are commanding premium prices. These versatile spaces serve as rental units, home offices, or accommodations for aging parents or adult children.

The additional income potential makes these homes especially attractive. Recent zoning changes in many Arizona municipalities have made ADUs easier to build and operate. Buyers are willing to pay significantly more for properties in areas like Mesa, Tempe, and parts of Tucson that offer these flexible living arrangements.

12. Resort-Style Homes With Outdoor Living

Properties featuring elaborate outdoor entertainment areas are experiencing rapid price growth. Homes with resort-quality pools, outdoor kitchens, and covered patios allow residents to enjoy Arizona’s perfect winter and spring weather.

Ramadas, fire features, and misting systems extend outdoor usability year-round. These backyard retreats gained new appreciation during the pandemic as people prioritized at-home recreation. I’m seeing particularly strong demand in communities like Grayhawk, DC Ranch, and Oro Valley where outdoor living spaces create private sanctuaries.