Buying new construction in Phoenix, Arizona: the public report, water and what to check (2026)

Why Phoenix

According to the Census, the Phoenix area was 4th in the country for population gains between 2024 and 2025: 59,065 more people, reaching 5,228,938. Pinal County, to the south, grew 4.6% in a single year.

It's also where the building is. In 2025, 23,755 single-family homes were permitted in the Phoenix area, 3rd in the country, and Maricopa was the U.S. county with the most single-family homes permitted.

Unlike Texas and Florida, Arizona does have an income tax: a flat 2.5%.

The public report

A subdivision, meaning land split into six or more lots, can't be sold without a public report from the Arizona Department of Real Estate (ADRE). You must receive it before you sign, and you sign a receipt.

• It covers where the water comes from, who provides power and sewer, flood risk and drainage, taxes and fees, the homeowners association, and whether there's an airport or military area nearby.
• ADRE itself warns that it hasn't verified all the information in the report.
• You can also look it up in the ADRE database.
• If you didn't get it, or you were sold a lot before it existed, you can rescind the purchase for up to 3 years.

The "7 days to cancel" don't apply to homes

This is what people get wrong most often. The law gives 7 days to back out, for any reason, when buying an unimproved lot. But it doesn't apply if the home is already built or if the builder commits in the contract to finish it within two years, which is the norm when buying a new home. ADRE says it plainly: the right of rescission does not apply to new or previously owned homes.

What you do get:

• 3 years to rescind if you didn't receive the public report.
• 10 days to cancel if, after signing, you're notified in writing of a material change to the plan that hurts you.

So read the contract before you sign, not after.

Water

In the Phoenix area, the law requires a 100-year assured water supply before a subdivision is approved. Without it, ADRE won't issue the public report.

• 2023. The Arizona Department of Water Resources (ADWR) model projected a 100-year groundwater shortfall, and the state stopped issuing new certificates that relied on groundwater alone. According to news reports, that stalled subdivisions in areas without a designated water provider, such as Queen Creek, Goodyear and Buckeye.
• April 2026. A judge struck down the rule ADWR had used because it didn't follow the rulemaking process, and ADWR said it will appeal. The case is still in court. ADWR released a new version of its model this year, and its page doesn't mention the ruling.
• What's on you: check the public report to see who will provide your water: a designated city or utility, or the subdivision's own certificate. Areas relying solely on their own wells carry more risk of the project stalling.

Phoenix also depends on the Colorado River, which has faced cuts for years and will operate under new rules starting in 2027.

Deposit and taxes

• The deposit. Ask where it goes: to an escrow account or the builder's general account. If it doesn't go to escrow, the law requires you to initial a separate paragraph in the contract.
• Property tax. The main taxes on a home can't exceed 1% of its value, not counting bonds or special districts, and the value used rises at most 5% a year. If it's your primary residence, say so: the state pays part of the school tax, up to $600.

If a defect shows up

You can file a complaint with the Registrar of Contractors up to 2 years after closing or moving in. To sue, you first notify the builder by certified mail and it has 60 days to respond; the deadline is 8 years from completion. Hire your own inspector during construction, even if no one requires it.

Buying in Arizona with Instadigs

Digger AI Agent finds new construction in Phoenix or any town you name, checks who's building, what they've delivered and whether there are delays, and runs the numbers with yours. If you want, it represents you in a Move: our licensed Arizona broker, the Broker of Record, handles the purchase, and 100% of the Instadigs commission comes back to you as a credit at closing. It goes in the contract and on the closing statement, in full view of everyone, including your lender if you have a mortgage (how it works and what the law says).