Phoenix is now one of the coldest housing markets in the U.S.

The Phoenix area is famous for its hot weather. Remember just last month, when we had record-breaking temperatures in the 100s?

Our housing markets, on the other hand? Not so hot. At least not recently.

Phoenix suffered a housing crisis after the COVID-19 pandemic halted construction of new homes. For years afterward, there weren’t enough homes on the market, which sent prices skyrocketing. But recent construction efforts seem to have swung the pendulum in the other direction. The influx of new builds has put water on the flames, so to speak, and cooled our market down.

According to a study published by construction research publisher Construction Coverage, several Valley cities are among the coldest real estate markets in the country.

Construction Coverage analyzed data from more than 800 cities and all 50 states to figure out which real estate markets were hot — and which were not. Using a host of data from the real estate company Redfin, Construction Coverage created composite scores to rank cities and their real estate markets.

Out of 52 large cities across the country, Phoenix’s real estate market came in 42nd with a composite score of 28.6. That’s just behind Tucson, which took 41st with a 29.1 score. In comparison, San Francisco took the gold with a composite score of 83.

The recent data show a slight improvement in Phoenix, which came in 45th in 2025. But it’s a far cry from its peak in 2020, when it took second, and its solid showing in 2022, when it took 15th.

According to the study, only 15.4% of Phoenix homes are selling at above asking price. That’s compared to 27% of homes selling above asking price nationally. Homes are also sitting on the market a median of 59.2 days in Phoenix compared to a median of 48.7 days nationally. 

Phoenix is doing all right with its prices, though. The median home price is $450,000, with prices rising at the national average of 1.6% annually. 

The city is doing better than the state on the whole, though. Arizona ranked third-to-last in the nation, beating only Texas and Florida. The state is dragged down by cooling markets in many other Valley cities. Among big cities, Mesa ranked 45th of 52. Of 127 medium-sized cities, Glendale, Scottsdale, Gilbert, Peoria, Surprise, Tempe and Chandler all finished in the bottom 25.

Here’s a closer look at how Arizona and the Valley’s cities performed, with stats as of January 2026.