A Statistical Breakdown by The Remakel Group
If you’re considering a move to Prescott, Arizona, one of the first questions you might ask is: Should I rent or buy a home? This charming mountain town, known for its rich history, scenic beauty, and vibrant community, offers a unique housing market that appeals to a variety of lifestyles. At The Remakel Group, we’ve been helping buyers and sellers navigate Northern Arizona’s real estate landscape for years, and we’re here to break down the latest statistics to help you make an informed decision. Let’s dive into the numbers and explore the pros and cons of renting versus buying in Prescott as of February 27, 2025.
The Current Housing Market in Prescott
Prescott’s real estate market has seen steady growth in recent years, driven by its appeal to retirees, second-home buyers, and those seeking a respite from bustling urban areas like Phoenix or Los Angeles. According to recent data, the median home sale price in Prescott was $643,258 in January 2025, reflecting a 4.5% increase from the previous year. Meanwhile, the median price per square foot sits at $321, offering a glimpse into the cost of ownership in this area.
On the rental side, Prescott offers a range of options, with monthly rental prices spanning from $838 to $7,000, depending on size, location, and amenities. With 69.4% of households in Prescott being owner-occupied and 30.6% renter-occupied, the market reflects a strong preference for homeownership—but renting remains a viable option for many.
Cost Comparison: Renting vs. Buying
One of the most critical factors in deciding whether to rent or buy is the cost. Let’s look at how the numbers stack up in Prescott:
- Buying: Based on broader Arizona trends, purchasing a home in Prescott Valley (a nearby community often reflective of Prescott’s market) costs approximately $1,157 more per month than renting, according to a 2024 study. Applying this to Prescott, where median home prices are higher, we can estimate that owning a median-priced home of $643,258 (with a standard 20% down payment and current mortgage rates) could result in a monthly payment of around $3,000–$3,500, including taxes, insurance, and maintenance.
- Renting: In contrast, the median rental price in Prescott likely falls closer to $1,500–$2,000 per month for a typical 2- or 3-bedroom home or apartment, based on available listings ranging from $838 to $7,000. This leaves a significant gap—potentially $1,000–$2,000 per month—between renting and buying.
Fr those eyeing long-term savings, homeownership in Prescott could pay off. The market has shown a consistent appreciation rate, with homes selling for 4.5% more than they did a year ago. However, renting offers immediate affordability and flexibility, especially for newcomers or those saving for a down payment.
Market Dynamics: A Buyer’s Market in 2025
As of January 2025, Prescott is classified as a buyer’s market, meaning there are more homes available than buyers actively seeking them. This shift is evident in the data:
- 695 homes were for sale in January 2025, a 4.2% increase from December 2024.
- Homes are taking longer to sell, with an average listing age of 91 days (up 11.2% from last year) and 41% of homes sold after 90 days on the market.
- 78% of homes sold below asking price, indicating room for negotiation.
For buyers, this presents an opportunity to secure a home at a potentially lower price or with favorable terms. Renters, however, benefit from this slower market as landlords may be more competitive with pricing or lease incentives to fill vacancies
Lifestyle and Long-Term Considerations
Beyond the numbers, your decision to rent or buy in Prescott may hinge on your lifestyle and goals:
- Renting Pros: Flexibility to relocate, no maintenance responsibilities, and lower upfront costs make renting ideal for those testing the waters in Prescott or prioritizing short-term stays. With 30.6% of residents renting, you’ll find a robust rental community, from affordable apartments to luxury homes.
- Buying Pros: Equity building, potential appreciation (Prescott’s 4.5% annual increase is promising), and the stability of owning a piece of this picturesque town appeal to long-term residents. With 69.4% of households owning, Prescott fosters a strong sense of community for homeowners.
The Remakel Group’s Take
At The Remakel Group, we’ve seen firsthand how Prescott’s housing market caters to diverse needs. For renters, the current buyer’s market could mean more negotiating power with landlords. For buyers, the combination of rising home values and a slower sales pace offers a chance to invest wisely. However, the $1,000+ monthly premium to own versus rent is a significant consideration—especially if you’re not planning to stay long-term.
Our advice? If you’re leaning toward buying, now might be a strategic time to act while the market favors negotiation. If renting fits your current phase of life, you’ll enjoy affordability and flexibility without sacrificing access to Prescott’s charm. Either way, we’re here to guide you. With decades of experience in Prescott’s real estate scene, Richard and Heidi Remakel can tailor a plan to your unique goals.
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