Renting vs Owning in 2025: What Arizona Residents Need to Know

by Olga Boyke - Your Local Arizona Real Estate Expert

If you’ve been following the housing market this year, you’ve probably noticed that things are shifting. In some suburbs across the country, there are now more renters than homeowners. That’s a pretty big change. And as someone who’s been helping people buy and sell homes here in Arizona for years, I’ve been paying close attention to what this means for all of us.

Maybe you’re wondering if it’s finally time to buy your first home. Maybe you’re thinking about selling. Or maybe you’re just trying to figure out if renting a little longer makes sense. Whatever your situation, you’re not alone. And I’m here to help make sense of it

Why Are More People Choosing to Rent Right Now?

The last couple of years have been tough for a lot of buyers. Between rising interest rates, low inventory, and home prices that made it hard to compete, many people decided to hold off on buying. It wasn’t necessarily what they wanted, but renting gave them more breathing room.

In places like Phoenix, Chandler, and Gilbert, we’ve seen a lot of new apartment communities go up with amenities like pools, fitness centers, pet-friendly setups, and flexible lease terms. That kind of convenience is appealing, especially when the market feels uncertain.

But Here’s What I’m Seeing Now: Rent Is Getting Expensive Too

Rent might have felt like the more manageable option at the time, but over the past few years, prices have crept up fast. In Phoenix, for example, the average rent has jumped more than 25 percent in just three years. That’s a big deal. And it means that while you’re paying each month, you’re not building anything for yourself long term.

Homeownership, on the other hand, can offer more stability. With a fixed mortgage, you know what your payments are going to be. And as your home grows in value, you build equity. It’s an investment in your future, not just a monthly expense.

Should You Rent or Buy in 2025?

This is one of the most common questions I get. And honestly, the answer depends on your goals. But here’s what I usually tell my clients.

If you plan on staying in the area for at least three to five years, it’s definitely worth considering buying.

If your finances are in a good place but you’re unsure where to start, let’s talk about your options and map out a plan that fits your goals.

And if you’re currently renting, this could be a great time to get prepared—build your credit, save for a down payment, and take advantage of some of the first time buyer programs that are available here in Arizona.

Arizona Still Has So Much to Offer for Homeowners

Even with all the changes in the market, Arizona continues to be one of the most attractive places to live. We have strong job growth, amazing weather, and neighborhoods that suit all kinds of lifestyles. Whether you love the energy of downtown Phoenix or the family feel of the East Valley, there are still great opportunities to own a home that truly works for you.

This market doesn’t have to be overwhelming. With the right plan and a little guidance, you can feel confident about your next step. I’m here to offer support, local knowledge, and honest advice whenever you need it.

This market doesn’t have to be overwhelming. With the right plan and a little guidance, you can feel confident about your next step. I’m here to offer support, local knowledge, and honest advice whenever you need it.

Thinking about what your next move might look like? Let’s talk. Even if you’re just looking for clarity or a second opinion, I’m always happy to help!