The Housing Market in Scottsdale Today
Scottsdale, Arizona is known for its upscale resorts, high-end shopping, and world-class golf courses. But what’s the housing market really like for the 250,000+ people who call Scottsdale home? In 2023, the local real estate landscape is marked by steady demand, limited inventory, and above-average prices compared to the Phoenix metro area as a whole.
Over the past year, the median home price in Scottsdale rose 6.2% to $610,000 according to Redfin data. While price growth has moderated from the double-digit pace seen in 2021-2022, competition remains stiff, with most homes selling in under 30 days. “Inventory has definitely tightened,” notes local agent Kelly Smith. “Buyers need to come in with strong offers to win out, especially in the most desirable neighborhoods.”
On the new construction front, several apartment and condo developments are rising in downtown Scottsdale and along major corridors like Scottsdale Road. These projects aim to meet the needs of young professionals, empty nesters, and seasonal residents seeking turnkey living. However, most new builds are firmly in the luxury category, with prices to match.
Renting in Scottsdale: What’s Typical?
As of March 2023, the average rent for an apartment in Scottsdale is $1,897 per month. That’s about 20% higher than the Phoenix-area average of $1,547. Drilling down by unit size, renters can expect to pay around $1,650 for a 1-bedroom apartment and $2,100 for a 2-bedroom.
Rent prices have risen steadily in recent years, fueled by population growth, limited apartment supply, and strong job gains in sectors like healthcare, finance, and hospitality. “We’re seeing a lot of demand from young professionals moving to Scottsdale for work,” says property manager Ana Torres. “They want the lifestyle and amenities, and they’re willing to pay for it.”
The most popular areas for renters tend to be close to downtown Scottsdale, Kierland Commons, and the ASU SkySong innovation center. These locations offer walkable access to dining, shopping, and entertainment. Older adults and seasonal renters often prefer quieter spots like McCormick Ranch and Gainey Ranch, which feature resort-style apartment and condo communities.
Owning a Home in Scottsdale
For those looking to buy a home in Scottsdale, the current median price of $610,000 translates to a monthly mortgage payment of around $3,200 (assuming a 20% down payment and 6.5% interest rate). However, that’s just the beginning of the costs associated with homeownership.
Property taxes in Scottsdale average 0.6% of a home’s assessed value, which adds about $305 per month for a median-priced home. Homeowners insurance runs around $100 per month, while utility costs average $180 for a typical 1,800 square-foot house. Many homes in Scottsdale are located in HOA communities, so dues of $200-500 per month are common as well.
Altogether, the true monthly cost of owning a mid-range home in Scottsdale is closer to $4,000 when you factor in mortgage, taxes, insurance, utilities, and HOA fees. That’s significantly higher than the $2,450 average monthly cost for renters. Of course, owning does have benefits like building equity, tax deductions, and more control over your living space.
Renters vs. Homeowners: Who Lives Where?
Scottsdale’s homeownership rate of 67% is higher than the national average of 64%. However, that still means 1 in 3 households are renters. The split between renting and owning often comes down to life stage, career, and financial factors.
Young professionals, especially those under 35, are more likely to rent apartments near their jobs or the entertainment districts of Old Town and downtown Scottsdale. They value amenities, flexibility, and being in the heart of the action. Families, on the other hand, often prioritize space and highly-rated schools, leading them to buy homes in neighborhoods like Arcadia, Paradise Valley, and DC Ranch.
For retirees and empty nesters, the choice between renting and buying depends on their desired lifestyle and financial picture. Some opt to downsize to a luxury condo or 55+ community, while others prefer the low-maintenance ease of renting. Financially, rising home prices and interest rates have made it harder for first-time buyers to afford a house in Scottsdale. Saving up for a down payment is a major challenge, especially for those with student loan debt.
Typical Monthly Housing Costs in Scottsdale
Here’s what housing costs might look like each month in Scottsdale:
| Cost | Apartment (1BR) | House (Median Price) |
|---|---|---|
| Rent/Mortgage | $1,650 | $3,200 |
| Property Tax | $0 | $305 |
| Utilities | $150 | $180 |
| Insurance | $15 (renters) | $100 |
| HOA | $0 | $200 |
| Total | $1,815 | $3,985 |
Estimates reflect mid-range properties and average usage.
What’s Driving Costs Up or Down?
Several factors influence the cost of housing in Scottsdale. On the demand side, the strong job market and influx of high-earning professionals from places like California and the Midwest keep competition high for limited inventory. Scottsdale’s reputation as a premier destination to live, work, and retire also draws a steady stream of newcomers.
In terms of supply, Scottsdale is landlocked with little room to build new single-family homes. Zoning restrictions and community opposition often limit higher-density projects as well. This puts upward pressure on prices for existing homes and apartments. However, there are some signs of relief ahead, with over 2,000 new apartment units under construction or in the pipeline for 2023-2024.
The overall economy and interest rates also play a role. When mortgage rates rise, as they did in 2022, it sidelines some would-be buyers and increases demand for rentals. If a recession hits, it could cool the job market and population growth, potentially easing competition and slowing price gains. But for now, most experts expect housing costs in Scottsdale to continue climbing, albeit at a more moderate 3-5% annual pace.
FAQs About Housing in Scottsdale
- Is Scottsdale affordable to live in? Compared to the national average, Scottsdale is a relatively expensive place to live. Housing costs are the biggest factor, with home prices and rents well above the US median. However, salaries in Scottsdale also tend to be higher than average, especially in fields like healthcare, tech, and finance. See a full breakdown of the cost of living in Scottsdale.
- Why are housing prices changing? Housing prices in Scottsdale are influenced by supply and demand factors like population growth, job market strength, available inventory, and new construction. Economic conditions like mortgage rates and consumer confidence also play a role. In recent years, demand has consistently outpaced supply, leading to steady price appreciation.
- How does Scottsdale compare to nearby cities? Scottsdale is one of the pricier places to live in the Phoenix metro area. Nearby cities like Tempe, Chandler, and Gilbert generally offer more affordable housing options, especially for renters. However, they may not have the same level of luxury amenities, upscale shopping, or resort-style communities found in Scottsdale.
Making Smart Housing Decisions in Scottsdale
Whether you’re looking to rent or buy, it’s important to understand the full picture of housing costs in Scottsdale. Beyond just rent or mortgage payments, be sure to factor in expenses like utilities, insurance, property taxes, and HOA fees. Location also matters, both for your lifestyle and your budget. Generally, the closer you are to downtown Scottsdale or the luxury master-planned communities, the more you can expect to pay.
For renters, it’s a good idea to set a monthly budget and stick to it. Experts recommend spending no more than 30% of your income on housing, but in a high-cost market like Scottsdale, you may need to adjust that upward. If possible, look for apartments that include utilities or offer move-in specials to help offset costs.
If you’re considering buying a home, work with a local real estate agent who knows the Scottsdale market inside and out. They can help you find neighborhoods that fit your budget and lifestyle, and guide you through the competitive offer process. Be sure to get pre-approved for a mortgage and have your down payment funds ready to go when you start your search.
No matter your housing situation, living in Scottsdale offers a unique blend of urban amenities and resort-style luxury. By understanding the costs and trends shaping the market, you can make an informed decision about where to call home in this desert oasis.
The Housing Market in Scottsdale Today
Scottsdale, Arizona is known for its upscale resorts, high-end shopping, and world-class golf courses. But what’s the housing market really like for the 250,000+ people who call Scottsdale home? In 2023, the local real estate landscape is marked by steady demand, limited inventory, and above-average prices compared to the Phoenix metro area as a whole.
Over the past year, the median home price in Scottsdale rose 6.2% to $610,000 according to Redfin data. While price growth has moderated from the double-digit pace seen in 2021-2022, competition remains stiff, with most homes selling in under 30 days. “Inventory has definitely tightened,” notes local agent Kelly Smith. “Buyers need to come in with strong offers to win out, especially in the most desirable neighborhoods.”
On the new construction front, several apartment and condo developments are rising in downtown Scottsdale and along major corridors like Scottsdale Road. These projects aim to meet the needs of young professionals, empty nesters, and seasonal residents seeking turnkey living. However, most new builds are firmly in the luxury category, with prices to match.
Renting in Scottsdale: What’s Typical?
As of March 2023, the average rent for an apartment in Scottsdale is $1,897 per month. That’s about 20% higher than the Phoenix-area average of $1,547. Drilling down by unit size, renters can expect to pay around $1,650 for a 1-bedroom apartment and $2,100 for a 2-bedroom.
Rent prices have risen steadily in recent years, fueled by population growth, limited apartment supply, and strong job gains in sectors like healthcare, finance, and hospitality. “We’re seeing a lot of demand from young professionals moving to Scottsdale for work,” says property manager Ana Torres. “They want the lifestyle and amenities, and they’re willing to pay for it.”
The most popular areas for renters tend to be close to downtown Scottsdale, Kierland Commons, and the ASU SkySong innovation center. These locations offer walkable access to dining, shopping, and entertainment. Older adults and seasonal renters often prefer quieter spots like McCormick Ranch and Gainey Ranch, which feature resort-style apartment and condo communities.
Owning a Home in Scottsdale
For those looking to buy a home in Scottsdale, the current median price of $610,000 translates to a monthly mortgage payment of around $3,200 (assuming a 20% down payment and 6.5% interest rate). However, that’s just the beginning of the costs associated with homeownership.
Property taxes in Scottsdale average 0.6% of a home’s assessed value, which adds about $305 per month for a median-priced home. Homeowners insurance runs around $100 per month, while utility costs average $180 for a typical 1,800 square-foot house. Many homes in Scottsdale are located in HOA communities, so dues of $200-500 per month are common as well.
Altogether, the true monthly cost of owning a mid-range home in Scottsdale is closer to $4,000 when you factor in mortgage, taxes, insurance, utilities, and HOA fees. That’s significantly higher than the $2,450 average monthly cost for renters. Of course, owning does have benefits like building equity, tax deductions, and more control over your living space.
Renters vs. Homeowners: Who Lives Where?
Scottsdale’s homeownership rate of 67% is higher than the national average of 64%. However, that still means 1 in 3 households are renters. The split between renting and owning often comes down to life stage, career, and financial factors.
Young professionals, especially those under 35, are more likely to rent apartments near their jobs or the entertainment districts of Old Town and downtown Scottsdale. They value amenities, flexibility, and being in the heart of the action. Families, on the other hand, often prioritize space and highly-rated schools, leading them to buy homes in neighborhoods like Arcadia, Paradise Valley, and DC Ranch.
For retirees and empty nesters, the choice between renting and buying depends on their desired lifestyle and financial picture. Some opt to downsize to a luxury condo or 55+ community, while others prefer the low-maintenance ease of renting. Financially, rising home prices and interest rates have made it harder for first-time buyers to afford a house in Scottsdale. Saving up for a down payment is a major challenge, especially for those with student loan debt.
Typical Monthly Housing Costs in Scottsdale
Here’s what housing costs might look like each month in Scottsdale:
| Cost | Apartment (1BR) | House (Median Price) |
|---|---|---|
| Rent/Mortgage | $1,650 | $3,200 |
| Property Tax | $0 | $305 |
| Utilities | $150 | $180 |
| Insurance | $15 (renters) | $100 |
| HOA | $0 | $200 |
| Total | $1,815 | $3,985 |
Estimates reflect mid-range properties and average usage.
What’s Driving Costs Up or Down?
Several factors influence the cost of housing in Scottsdale. On the demand side, the strong job market and influx of high-earning professionals from places like California and the Midwest keep competition high for limited inventory. Scottsdale’s reputation as a premier destination to live, work, and retire also draws a steady stream of newcomers.
In terms of supply, Scottsdale is landlocked with little room to build new single-family homes. Zoning restrictions and community opposition often limit higher-density projects as well. This puts upward pressure on prices for existing homes and apartments. However, there are some signs of relief ahead, with over 2,000 new apartment units under construction or in the pipeline for 2023-2024.
The overall economy and interest rates also play a role. When mortgage rates rise, as they did in 2022, it sidelines some would-be buyers and increases demand for rentals. If a recession hits, it could cool the job market and population growth, potentially easing competition and slowing price gains. But for now, most experts expect housing costs in Scottsdale to continue climbing, albeit at a more moderate 3-5% annual pace.
FAQs About Housing in Scottsdale
- Is Scottsdale affordable to live in? Compared to the national average, Scottsdale is a relatively expensive place to live. Housing costs are the biggest factor, with home prices and rents well above the US median. However, salaries in Scottsdale also tend to be higher than average, especially in fields like healthcare, tech, and finance. See a full breakdown of the cost of living in Scottsdale.
- Why are housing prices changing? Housing prices in Scottsdale are influenced by supply and demand factors like population growth, job market strength, available inventory, and new construction. Economic conditions like mortgage rates and consumer confidence also play a role. In recent years, demand has consistently outpaced supply, leading to steady price appreciation.
- How does Scottsdale compare to nearby cities? Scottsdale is one of the pricier places to live in the Phoenix metro area. Nearby cities like Tempe, Chandler, and Gilbert generally offer more affordable housing options, especially for renters. However, they may not have the same level of luxury amenities, upscale shopping, or resort-style communities found in Scottsdale.
Making Smart Housing Decisions in Scottsdale
Whether you’re looking to rent or buy, it’s important to understand the full picture of housing costs in Scottsdale. Beyond just rent or mortgage payments, be sure to factor in expenses like utilities, insurance, property taxes, and HOA fees. Location also matters, both for your lifestyle and your budget. Generally, the closer you are to downtown Scottsdale or the luxury master-planned communities, the more you can expect to pay.
For renters, it’s a good idea to set a monthly budget and stick to it. Experts recommend spending no more than 30% of your income on housing, but in a high-cost market like Scottsdale, you may need to adjust that upward. If possible, look for apartments that include utilities or offer move-in specials to help offset costs.
If you’re considering buying a home, work with a local real estate agent who knows the Scottsdale market inside and out. They can help you find neighborhoods that fit your budget and lifestyle, and guide you through the competitive offer process. Be sure to get pre-approved for a mortgage and have your down payment funds ready to go when you start your search.
No matter your housing situation, living in Scottsdale offers a unique blend of urban amenities and resort-style luxury. By understanding the costs and trends shaping the market, you can make an informed decision about where to call home in this desert oasis.