Rent vs buy in Arizona
Among 21 cities of 50,000+, renting wins in 13, buying wins in 6 and 2 are toss-ups, using today's numbers over 7 years.
Renting or buying in Arizona's cities
| City | Verdict | 7-year result | Break-even (up to 30 yrs) | Typical home | Rent /mo |
|---|---|---|---|---|---|
| Phoenix | Rent | renting wins by $14k | year 9 | $404,067 | $1,571 |
| Glendale | Rent | renting wins by $17k | year 10 | $399,844 | $1,511 |
| Peoria | Rent | renting wins by $17k | year 9 | $480,440 | $1,851 |
| Surprise | Buy | buying wins by $18k | year 6 | $416,014 | $1,942 |
| Flagstaff | Rent | renting wins by $53k | year 12 | $650,175 | $2,128 |
| Maricopa | Buy | buying wins by $26k | year 5 | $340,112 | $1,773 |
We based the verdicts on Zillow Home Value and Observed Rent indexes and our method for rent vs buy, with 20% down over 7 years.
Our view of Arizona
Renting is favored in 13 of 21 big Arizona cities over 7 years. Your decision depends on home prices compared with monthly rent. For Phoenix, the typical home price is $404,067 and the rent is $1,571. Renting saves you $14k over 7 years, and buying won't pay off until year 9. An $851,746 home in Scottsdale rents for $2,114. If you rent, you'll be $129k ahead, while buying doesn't catch up until year 20.
Buying has the advantage in 6 cities where rent is high compared with home prices, and 2 cities are close calls. A $391,189 home in Buckeye rents for $1,978 a month. Buying in Buckeye beats renting by $29k across 7 years, with the lead showing up in year 5. Yuma leans the same way: $293,382 for a home and $1,425 rent means buying comes out $11k ahead, paying off in year 6. Your 2 options in Tucson differ by $672 at year 7.
Once you own a home, low yearly bills help you. Property tax is 0.48%, far under the 0.94% US rate, while homeowners insurance is $1,011 a year compared with $1,308 nationwide. After the last 10 years of 8.5% yearly growth, a typical home costs $417k. Still, 33% of households rent, close to the US rate of 35%.
Our take: most Arizona cities favor renting, unless your stay runs 9 years or 10 years or longer. If your stay is shorter, buy only when local rent is high compared with the home price.