Lower inflation Housing prices down by 25%

Fortunately, price increases are slowing and prices for some goods will come down throughout 2023.

“As a result of rapid price appreciation here in recent years, our inflation rate will moderate faster than in other states,” Hoffman says.

Housing has become an issue in the Valley, says Rashad Shabazz, associate professor in the School of Social Transformation and the School of Geographical Sciences and Urban Planning. And no wonder, as the median sale price for a Phoenix home rose from $325,000 in January 2021 to $404,300 by October 2021.

Some positive news, Hoffman says, is that rising mortgage rates have pushed down real estate prices. While Hoffman doesn’t project a downturn like 2007, he says, “Prices should fall about 25% off their peak. Rental rates will cool in line with housing prices, although the pace will be slower.”

Stay connected

Go to neweconomy.asu.edu to learn more about the changing Arizona economy.

ASU’s Project Humanities periodically hosts roundtable panels about housing and other topics affecting local communities. Learn more at projecthumanities.asu.edu