Here’s what’s powering Arizona’s housing outlook

By Vincent Salandro | Builder

Arizona has long been a magnet region for many of the top builders. The state is home to two of the largest new-home markets in the nation, Phoenix (No. 3 on the 2025 Local Leaders list) and Tucson (No. 37), and benefits from strength across a variety of job sectors.

The Zonda Dealmakers event in Arizona will uncover the dynamics impacting the new-home sector in the state. Strength in several industries, including manufacturing and health care, is supporting income and population growth in the state, both positives for the housing sector.

While new-home sales decreased on an annual basis in Phoenix and Tucson in the final months of 2025, forecasts support employment growth and improving income profiles are lifting local purchasing power in the major Arizona markets.

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