5 Arizona Home Types Losing Value And 6 That Are Gaining Fast
The Arizona real estate market is changing faster than a desert sunrise. Some home types are skyrocketing in value while others are cooling off just as quickly.
Whether you’re looking to buy, sell, or just keep tabs on property trends, knowing which homes are hot and which are not can save you thousands of dollars and major headaches down the road.
1. Golf Course Communities Taking a Swing Downward
Green fees aren’t the only things dropping at Arizona golf communities. Homes bordering fairways in places like Scottsdale and Mesa are losing their premium pricing as younger buyers show less interest in the sport.
Water concerns also play a role – maintaining those perfect greens requires millions of gallons in our desert climate. Homeowners are discovering that hefty HOA fees and course maintenance assessments further dampen appeal. Even longtime golf enthusiasts are thinking twice about these properties.
2. Older Ranch-Style Homes Without Updates
Those charming 1960s and 70s ranch homes scattered across older Phoenix neighborhoods are struggling to compete. Without modern updates, these single-story properties with original kitchens and bathrooms are sitting longer on market.
Buyers today want open concepts and energy efficiency – not popcorn ceilings and pink tile bathrooms. The high renovation costs in today’s market make these fixer-uppers less attractive investments. Even in desirable areas like Arcadia Lite, outdated ranches are seeing price cuts after just weeks on market.
3. Large Luxury Mansions Over $3 Million
The mega-mansion market is cooling faster than an air-conditioned Paradise Valley living room. Properties over $3 million, especially those with excessive square footage and specialized amenities, are experiencing significant price reductions.
Rising interest rates hit this segment particularly hard. Even wealthy buyers think twice about massive utility bills and maintenance costs in these desert palaces. Some sellers who listed their sprawling estates last year are now cutting prices by hundreds of thousands. The days of rapid appreciation for Arizona’s most opulent homes appear to be on pause.
4. Remote Desert Properties Without Services
Those wide-open desert lots far from civilization aren’t the escape they once seemed. Properties in remote areas without reliable utilities, internet access, or nearby services are dropping in value as buyers prioritize convenience.
The romantic notion of desert solitude fades quickly when you’re hauling water or dealing with spotty cell service. Rising fuel costs make long commutes increasingly expensive. Even with lower prices, these distant properties are drawing fewer interested buyers than in previous years when remote work first drove people to seek isolation.
5. Aging Retirement Communities
Older retirement developments in areas like Sun City and Green Valley are facing a challenging market. These age-restricted communities, once wildly popular, now struggle to attract new retirees who want different amenities and housing styles.
Today’s 55+ buyers often seek more modern designs and tech-friendly spaces than these communities offer. Limited renovation options due to strict HOA rules further complicate matters. Properties in these areas typically stay on market longer and sell for less per square foot than comparable homes in age-diverse neighborhoods.
6. Desert Modern Homes Soaring in Popularity
Homes embracing the desert modern aesthetic are absolutely booming across Arizona. These properties feature clean lines, natural materials, and indoor-outdoor living spaces that perfectly complement our unique environment.
Buyers are willing to pay premium prices for homes that thoughtfully blend with the desert landscape. The style’s emphasis on energy efficiency through proper orientation and overhangs provides practical benefits too. From Tucson to Sedona, these architectural gems are often selling within days of listing, sometimes sparking bidding wars that push prices well above asking.
7. Homes With Accessory Dwelling Units
Properties featuring guest houses or casitas are commanding top dollar throughout the state. These flexible spaces offer buyers built-in rental income potential or room for extended family – a huge selling point in today’s market.
Multi-generational living arrangements have surged in popularity, making these homes particularly attractive. The rental income potential from platforms like Airbnb adds another layer of value. Even smaller properties with well-designed ADUs are outperforming larger single-structure homes in the same neighborhoods, sometimes selling for 15-20% more than comparable properties without secondary units.
8. Xeriscaped Properties With Water-Smart Features
Drought-resistant yards aren’t just environmentally friendly – they’re becoming major value boosters. Homes featuring professional xeriscaping and water-saving systems are selling faster and for more money across all Arizona price points.
Smart buyers recognize the long-term savings on water bills and maintenance. Native plants, efficient drip irrigation, and rainwater harvesting systems are particularly desirable features. As water concerns intensify in our region, properties that minimize consumption while maintaining beautiful outdoor spaces stand out dramatically in listing photos and showings.
9. Mid-Century Modern Renovations
The love affair with mid-century modern homes shows no signs of cooling off. Original properties from the 1950s-60s that have been thoughtfully updated while preserving their architectural character are commanding remarkable premiums.
Areas like Tempe’s Gage Addition and parts of central Phoenix see these homes snapped up within days. Signature features like post-and-beam construction, clerestory windows, and courtyard entries drive buyer enthusiasm. When tastefully combined with modern kitchens and updated systems, these architectural time capsules often sell for 30% more per square foot than conventional homes nearby.
10. Solar-Powered Smart Homes
The future is bright for solar-equipped smart homes across Arizona. Properties featuring owned (not leased) solar systems paired with home automation are commanding significant premiums in our sun-drenched market.
Buyers are willing to pay more upfront for the promise of minimal utility bills. The combination of solar power with smart thermostats, efficient appliances, and battery storage creates an especially attractive package. These tech-forward homes typically sell 10-15% faster than comparable properties without these features, particularly appealing to environmentally conscious buyers and those seeking energy independence.
11. Courtyard Homes With Indoor-Outdoor Living
Spanish and Mediterranean-inspired courtyard homes are experiencing a remarkable renaissance across Arizona. These designs, featuring private outdoor living spaces enclosed within the home’s footprint, perfectly suit our climate and lifestyle.
The pandemic reinforced our desire for functional outdoor spaces that offer both privacy and comfort. Properties with well-designed courtyards featuring built-in kitchens, fireplaces, and shade structures are particularly sought-after. Buyers appreciate how these homes extend living space while providing protection from wind and privacy from neighbors – a combination driving faster sales and higher prices.
