Arizona's economy rebounds with tech and infrastructure investments
What's driving growth
Major semiconductor manufacturing complexes, such as TSMC Arizona, are anchoring the state's transformation into a global chipmaking hub, creating high-wage jobs. Data centers and power generation infrastructure are also seeing increased investment, particularly in the Phoenix metro area. Healthcare, exemplified by Banner Health and Mayo Clinic's investments in Phoenix, continues to be a significant source of job growth.
Housing market right now
Arizona's housing market is normalizing, with median home prices in Phoenix hovering around $445,000 and Tucson at approximately $311,000. Inventory has grown to about four months of supply, providing buyers more options. Homes are spending an average of 50-70 days on the market before selling.
Migration patterns
Arizona remains a destination for interstate movers, ranking fourth nationally for net domestic migration in 2024, with approximately 55,505 more people moving in than leaving. California continues to be the largest source of inbound migration, sending about 50,000 people to Arizona annually. Remote work is a factor, with over a quarter of working newcomers employed remotely.
Headwinds
Federal economic policy uncertainty, increased tariffs, and reduced international migration have weighed on economic performance. Housing cost burdens remain elevated despite slowing home price increases. Population growth is expected to decelerate through 2027, driven by weakening natural increase.
Key facts
- Arizona's job growth is forecast to rise from 0.9% in 2025 to 1.6% in 2026. (Eller College of Management, December 2025)
- The Arizona Department of Transportation unveiled a $12.7 billion Tentative Five-Year Transportation Facilities Construction Program for 2026-2030. (ADOT, March 2025)
- Arizona ranked seventh nationally in U-Haul's 2025 Growth Index for net gains of one-way moving customers. (U-Haul, January 2026)
- The median listing price in Arizona stood at $468,000 as of April 2026, a 3.51% decrease compared to a year prior. (Realtor.com, April 2026)
- Major Arizona cities must allow "middle housing" options like duplexes and triplexes on single-family lots within one mile of a central business district, effective January 1, 2026. (Arizona State Legislature, March 2026)