This Phoenix ZIP code ranks among the nation's hottest housing markets

By Joanne Drilling 

Arizona's housing market has shown considerable resiliency, specifically in areas such as Scottsdale and Paradise Valley. Meanwhile, Phoenix ZIP code is the hottest housing market in Arizona for the second quarter of 2025.

Phoenix's 85012 ZIP code ranked No. 7 among the hottest ZIP codes nationally, behind metros such as Sunapee, New Hampshire (03782); Los Angeles, California (90020) and Greenville, Maine (04441) — the top three on the list.

That’s according to The Business Journals’ latest analysis of the country’s hottest housing markets, which analyzed ZIP code-level mortgage and real estate data provided by Intercontinental Exchange to determine the top luxury housing markets.

The rankings aren’t meant to highlight the most expensive or the most popular markets, although some of those are on the list. Instead, rankings spotlight ZIP codes where activity is surging, prices are dramatically rising or homes are selling at a faster pace.

Within 85012, available listings are up 75% while listings under contract are down 40%, said Sarah Perkins, director of industry research and senior account executive for Navi Title Agency, according to previous Business Journal reporting.

The Valley's hottest ZIP code (85012) is in the Central Phoenix area, and a short commute to cultural landmarks such as Phoenix Art Museum and Heard Museum.

The average list price for homes in the area is $875,191 with an average sale price of $1,445,638. The year-over-year sales price growth is 92.57%.

The nation's hottest luxury markets
Topping the list is Sunapee, New Hampshire’s 03782, which had an average listing price of $1.19 million. While listing prices in 03782 fell 42% from first quarter, the year-over-year loss was 16%.

California claimed 51 of the 100 hottest luxury markets and eight of the top 20. Of The Business Journals’ 289 Hottest Housing luxury markets, Los Angeles accounted for 8.3%, followed by San Francisco (5.9%), San Jose (2.7%) and Santa Monica (1.8%).

Arizona had 124 of the hottest luxury markets and three of the top 100 with most of the ZIP codes located in Phoenix (25), Scottsdale (10) and Tucson (10).

In contrast, the small town 86436 ZIP code in Arizona's Topock area — on the Colorado River roughly midway between Lake Havasu City and Bullhead City — was one of the five hottest housing markets in the nation during the first quarter. It ranked No. 4 on the list.

As prospective buyers grapple with economic uncertainty, overall residential real estate inventory has ticked up in recent months and sale prices have subsequently cooled. However, luxury markets — identified as ZIP codes with an average home price of at least $2 million — tended to be more insulated.

Between Q1 and Q2, average sales prices among luxury Hottest Housing ZIP codes increased only 0.4%. Year-over-year, that change was 5% and, since 2019, prices have grown 56%.

The overall residential market, meanwhile, saw a gain of 3% in sales prices compared to last quarter. The average sales price within the broader market is up 2% year-over-year but has grown 58% from pre-pandemic levels.

Where luxury prices are surging
ZIP codes that have historically experienced the most substantial growth at the top end of the market have historically been near the nation’s largest metros or adjacent to tech hubs.

While pandemic-era migration hot spots in Florida and Arizona joined those ranks, the latter markets cooled somewhat in the second quarter. And, as mentioned, California in particular had a strong showing during the most recent period.

Over the past five years, Los Angeles ZIP code 90020 had the strongest luxury price growth, at 277%. Home to the Miracle Mile and a hub of entertainment and retail, the ZIP code was No. 2 on The Business Journals’ Luxury Hottest Housing metric for Q2.

Average home-sale prices grew from $576,000 to $2.17 million in 90020. Over the past 12 months, that ZIP code maintained a 272% growth rate, followed by a 128% jump between the first and second quarter of this year.

Fellow Los Angeles ZIP code 90004 came in at No. 10. The Hollywood and Larchmont area showed a more modest bump of 39% compared to 2019 figures, with average sale prices growing from $1.5 million to $2.1 million. Year-over-year growth was 82%, while quarter-over-quarter saw a 20% increase.

Two ZIP codes from Newport Beach, California, also made the top 10 luxury list for Q2.

ZIP code 92661 experienced average selling price gains of 117% compared to pre-pandemic levels. Homes in that Orange County community sold for an average of $3.47 million in 2019, but that soared to $7.53 million during the same period in 2025. The tony coastal area posted an annual gain of 66% and grew 22% quarter-over-quarter.

Meanwhile, Newport Beach's 92663 ranked ninth on the the luxury market list, with six-year price growth of 128%. Home prices jumped from $1.9 million to $4.34 million during that period. Much like its Orange County neighbors, ZIP code 92663’s recent gains were more modest, at 31% and 36% for annual and quarterly growth, respectively.

Final Thoughts/Takeaways:
Phoenix’s 85012 ZIP code continues to shine as one of the hottest housing markets in the nation, ranking No. 7 for Q2 2025. With a 92% year-over-year sales price growth and proximity to downtown cultural landmarks, the area reflects strong demand for luxury homes even as broader market activity cools. This trend underscores Central Phoenix’s growing appeal for high-end buyers seeking location, culture, and investment potential.