Why Arizona’s Luxury Market is Still Strong in Uncertain Times

By Jeff Hernandez, Realtor & Attorney — The Connie Colla Group at RETSY

The past few years have been anything but predictable. We’ve seen record-high inflation, fluctuating mortgage rates, geopolitical uncertainty, and a national housing market that feels like it’s teetering between a boom and a cooldown. Yet here in Arizona, specifically in luxury enclaves like Scottsdale, Paradise Valley, and parts of Phoenix, the market remains surprisingly resilient.

A Unique Blend of Demand Drivers

To understand why Arizona's luxury market stays strong, you need to look at what drives demand. Unlike other states that depend heavily on local jobs or a few key industries, Arizona attracts a diverse group of buyers with different motivations.

1. Migration from High-Tax States

Many of my clients are transplants from California, Illinois, or New York. They're often escaping high property taxes, state income taxes, or simply looking for a better quality of life. Arizona's warm climate, vibrant lifestyle, and relatively low cost of living are strong magnets.

2. Remote Work Has Changed the Game

Since 2020, we've seen a shift. Executives, tech entrepreneurs, and creatives no longer need to be tied to New York, San Francisco, or L.A. They're choosing where they want to live, and Arizona, with its lifestyle perks and stunning architecture, often tops that list.

Luxury buyers today aren’t just looking for square footage; they’re looking for lifestyle alignment. They want curated spaces for wellness, privacy, entertaining, and work-from-home functionality. And many are finding that perfect balance here in the Sonoran Desert.

Inventory is Tight, But Quality is High

While the national inventory is growing slowly, Arizona’s luxury market stays competitive. Homes in Scottsdale and Paradise Valley priced at $1.5M and above are selling faster and sometimes receiving multiple offers. Builders remain active, but not enough to cause oversaturation, which keeps current supply highly competitive.

Arizona's Economic Fundamentals Are Strong

One reason luxury real estate remains strong is the underlying economic stability in Arizona. Tech companies continue to move into Greater Phoenix, bringing high-paying jobs. Industries like semiconductors, healthcare, and finance are expanding, and the state’s pro-business climate adds a layer of long-term confidence.

Arizona State University and top-tier healthcare facilities also attract affluent buyers, including faculty, investors, and retirees seeking premium housing nearby.

Luxury doesn’t exist in a bubble; it reflects confidence. And right now, confidence in Arizona’s future is high.

Real Estate as a Hedge Against Inflation

During uncertain economic periods, real estate, particularly in the luxury sector, is often seen as a safe investment. I’ve had clients shift funds from volatile markets into real estate holdings, including Scottsdale estates and Paradise Valley compounds. Why? Because these properties retain their value. Many are experiencing modest appreciation, even while other markets face price corrections. The best part is that high-end Arizona properties offer value beyond financials: architectural design, privacy, mountain views, golf access, and proximity to top restaurants and spas. These homes evoke feeling, not just serve as investments.

Why? Because these properties are holding their value. Many are appreciating modestly, even while other markets see price corrections.

And the best part? High-end Arizona properties offer intrinsic value beyond the numbers: architectural design, privacy, mountain views, golf access, and proximity to award-winning restaurants and spas. These are homes that evoke a sense of emotion, not just investments.

Final Thoughts

Despite what headlines suggest, Arizona’s luxury market remains highly attractive nationally. It provides a desirable lifestyle, stability, and promising long-term growth, even during uncertain times.

If you’re a luxury buyer or seller wondering when to make your move, I’d be happy to share what I’m seeing firsthand in neighborhoods like Arcadia, Silverleaf, and Desert Mountain.

After many years in Arizona real estate and law, I can confidently say: the market isn’t just surviving; it’s evolving. Those who understand the nuances are the ones who will benefit the most.

Whether you’re investing, downsizing, or looking for your dream estate, I’m here to help you navigate it all with clarity, strategy, and results. Reach out today to Jeff Hernandez, Esq., Scottsdale Real Estate Agent & Attorney, at (602) 550-1114 and let’s start the conversation.