Phoenix metro area

Phoenix, AZ

Transfer costs are nearly zero and property tax grows slowly, but most newer homes sit inside HOAs whose rules state ADU law does not override. Extreme heat and long-term water supply are the risks that set this market apart.

💡 Upside tip

Read the HOA CC&Rs before you count on a casita or ADU: state law requires cities to allow ADUs but does not override HOA bans, and most post-1980 Phoenix homes are in HOAs. Then compare the city's permit records with the Maricopa County Assessor's square footage to catch unpermitted additions.

Offers & competition

The standard Arizona REALTORS resale contract gives the buyer a default 10-day inspection period to cancel or request repairs, and the buyer's Loan Status Update is due within 10 days. The research behind this guide has no Phoenix data on offer deadlines or competition.

Closing & who pays

Licensed escrow and title companies close sales; no attorney is required. Arizona is a disclosure state, so the sale price is recorded on the Affidavit of Property Value and visible in county records.

Transfer taxes

Arizona has no transfer tax. The only charge is a flat $2 Affidavit of Property Value fee plus ordinary recording fees.

Seller disclosures

There is no single statutory form; sellers must disclose known material facts, and the Arizona REALTORS Seller's Property Disclosure Statement (SPDS) is used in nearly every listing. Also get the CLUE insurance claims report and, in an HOA, the resale disclosure the association must provide within 10 days.

What you can build

State law HB 2720 requires cities over 75,000 people to allow ADUs on single-family lots by right, and Phoenix's middle-housing ordinance (adopted November 19, 2025 under HB 2721) allows up to 4 units per single-family lot within about 1 mile of downtown. HOA CC&Rs are not overridden by either law.

Permits & records

Permit history is searchable through the city Planning and Development Department's portal, and parcel data through the Maricopa County Assessor; comparing the two is the cheapest test for unpermitted garage conversions and patio enclosures. Residential review typically runs weeks rather than months, but check the city's permit portal for current timelines.

Property tax

Since Prop 117, taxes are levied on a Limited Property Value that can rise at most 5% a year and does not reset on sale. Owner-occupied homes get a 10% assessment ratio and a state homeowner rebate, and effective rates in Phoenix are roughly 0.5% to 0.7%.

Rent rules

Arizona has no statewide rent cap (only California, Oregon and Washington do). For rentals, the bigger constraint is often the HOA, since many Phoenix HOAs restrict short-term rentals and casitas.

Key risks

Expect about 100 or more days a year at or above 100°F, so HVAC age and capacity matter. In June 2023 the state paused new groundwater-based assured water supply certificates in the Phoenix area, which affects new subdivisions on the urban fringe but not existing homes served by the city of Phoenix.

⚠ Still verifying

The final HB 2720 numbers (ADU count, size caps, setback limits) were not checked against the statute, and early coverage described two units per lot rather than one. Phoenix's current ADU code, the 2025 alternative water supply rule and the post-2026 Colorado River guidelines are unconfirmed. Contract defaults, the $2 fee, tax rates and HOA prevalence come from background knowledge.

Official sources

Updated: 2026-10 · Summaries of public rules as of the date shown. Not legal or tax advice. Always confirm with the official source.