The Housing Market in Peoria Today
Peoria, Arizona is a rapidly growing suburb of Phoenix known for its affordable housing options, family-friendly neighborhoods, and proximity to big-city amenities. In recent years, the local housing market has seen steady demand driven by population growth and economic expansion. New housing developments are rising in many parts of the city to keep up with the influx of residents.
However, like many cities across the country, inventory has tightened somewhat in Peoria over the past year. The combination of high demand and limited supply has put upward pressure on both rents and home prices. Still, housing costs remain relatively affordable compared to other major metro areas, making Peoria an attractive option for those looking to stretch their housing budget.
Renting in Peoria: What’s Typical?
For renters, Peoria offers a wide range of apartments and rental homes to fit different budgets and lifestyles. As of 2023, the average rent for a one-bedroom apartment in Peoria is around $1,350 per month. Upgrading to a two-bedroom unit will cost you closer to $1,650 on average. These prices include basic utilities in some cases, but renters should budget an additional $150-$250 per month for electricity, water, and gas.
Rent prices can vary significantly based on factors like location, property age, and included amenities. Some of the most popular areas for renters include northern Peoria near the P83 entertainment district and the central neighborhoods around Old Town. These locations tend to have higher rents but offer easy access to dining, shopping, and other conveniences. Peoria is also popular with young professionals and families who appreciate the city’s strong school system and relatively affordable cost of living.
Owning a Home in Peoria
For those looking to purchase a home, Peoria’s median home price currently sits at $450,000. Assuming a 30-year mortgage with 20% down, this equates to a monthly payment of around $2,200 including principal and interest. However, homeowners must also budget for additional costs like property taxes, homeowners insurance, HOA dues, and ongoing maintenance.
In Peoria, property taxes typically add $200-$300 to the monthly cost of owning a home. Homeowners insurance averages around $100 per month, while HOA dues range from $30-$400 depending on the community and amenities. Maintenance and repair costs will also vary, but experts generally recommend setting aside 1-3% of your home’s value each year. For a $450,000 house, that’s $375-$1,125 per month.
Renters vs. Homeowners: Who Lives Where?
Peoria has a homeownership rate of approximately 70%, which is higher than the national average. This means that the majority of Peoria residents own their homes rather than rent. However, the city still has a significant renter population, particularly in certain neighborhoods and demographics.
Young professionals and new residents often rent apartments in Peoria as a lower-cost, lower-commitment option. Complexes near the P83 district are especially popular for their modern amenities and social atmosphere. Families are more likely to own single-family homes in the northern and central parts of the city, where larger properties and highly rated schools are common. Retirees can be found in both rentals and owned homes throughout Peoria, with many opting for patio homes or 55+ communities that offer a maintenance-free lifestyle.
Despite the benefits of homeownership, renting remains an important part of Peoria’s housing landscape. High home prices and limited starter-home inventory can be a barrier for first-time buyers. Saving for a down payment is also a challenge for many households. Additionally, some residents simply prefer the flexibility and predictable costs of renting.
Table: Typical Monthly Housing Costs in Peoria
Here’s what housing costs might look like each month in Peoria:
| Cost | Renting (1BR) | Owning ($450K) |
|---|---|---|
| Rent/Mortgage | $1,350 | $2,200 |
| Utilities | $175 | $280 |
| Property Tax | $0 | $250 |
| Insurance | $15 (renters) | $100 |
| HOA Dues | $0 | $85 |
| Maintenance | $0 | $375 |
| Total | $1,540 | $3,290 |
Estimates reflect mid-range properties and average usage.
What’s Driving Costs Up or Down?
Several factors influence housing costs in Peoria and the Greater Phoenix area. On the demand side, the region’s strong job market and appealing lifestyle continue to attract new residents from pricier cities. This puts pressure on the existing housing supply and allows landlords to raise rents. New housing construction has struggled to keep pace in recent years due to labor shortages, supply chain issues, and rising material costs.
Zoning and density restrictions also play a role in Peoria’s housing affordability. Much of the city is zoned for single-family homes, with apartments and townhomes limited to specific areas. This constrains the supply of “missing middle” housing that could provide more affordable options for moderate-income earners. Some new developments are starting to incorporate denser, more varied housing types, but progress is gradual.
FAQs About Housing in Peoria
- Is Peoria affordable to live in? Compared to major coastal cities, Peoria offers a relatively affordable cost of living. Housing costs are the biggest factor, with rents and home prices significantly lower than markets like Los Angeles or Seattle. However, Peoria is slightly pricier than some other Phoenix suburbs.
- Why are housing prices changing? Peoria’s housing costs have risen in recent years due to strong demand and limited supply. Population growth, job opportunities, and migration from more expensive areas have increased competition for available homes. New construction has been slow to meet the need.
- How does Peoria compare to nearby cities? Peoria is generally more affordable than Scottsdale and Tempe but pricier than distant suburbs like Queen Creek or Buckeye. For example, the average rent for a one-bedroom apartment is $1,350 in Peoria, $1,640 in Scottsdale, and $1,180 in Queen Creek.
Making Smart Housing Decisions in Peoria
When deciding whether to rent or buy a home in Peoria, it’s important to consider both the upfront and long-term costs. Renting offers greater flexibility and lower move-in expenses but does not build equity. Buying a home can be a good investment but comes with added costs and responsibilities. A monthly budget can help you understand what you can afford and plan for housing expenses alongside other financial priorities.
Peoria’s cost of living is likely to evolve in the coming years as the city and region continue to grow. By understanding the factors that influence local housing costs, residents can make informed decisions about where to live and how to manage their housing budgets. Whether renting or owning, there are options available to suit different lifestyles and financial situations in Peoria.