Every major builder in the valley — pricing, quality, incentives, negotiation leverage, and insider knowledge from a buyer's agent who works with all of them.
Phoenix has been one of the most prolific new construction markets in the United States for the better part of two decades, and 2026 is proving no exception. The metro area consistently ranks in the top three nationally for new housing permits, and the reasons are structural rather than cyclical: continued in-migration from California, the Pacific Northwest, and the Midwest; a booming semiconductor and tech employment base anchored by TSMC's $65 billion Fab 21 campus in north Phoenix and Intel's $20 billion Chandler operations; and a land supply that — while shrinking — still allows builders to deliver at scale in ways impossible in coastal markets. For a buyer navigating this landscape, however, "active market" is a double-edged description. Opportunity and complexity live side by side.
The 2026 inventory picture is sharply bifurcated by geography. The West Valley — Buckeye, Goodyear, Avondale, Surprise, and western Peoria — carries the most builder inventory in the metro, with D.R. Horton, Lennar, Beazer, and Richmond American competing aggressively for buyers. In communities like Festival Ranch in Buckeye and Surprise Farms, builders are offering mortgage rate buydowns, extended design center credits, and in some cases direct price concessions to move standing inventory. Meanwhile, the north Phoenix corridor within commuting distance of TSMC's Deer Valley campus has the opposite dynamic: restricted lot supply, multiple builders chasing the same parcels of state trust land at ASLD (Arizona State Land Department) auctions, and premium pricing on new construction that in some cases exceeds resale comparables. Understanding which market zone your target community sits in determines your entire negotiating posture before you walk into a model home.
This guide exists because the model home experience is designed to feel helpful while actually being one-sided. The sales agent sitting across from you at the gleaming design center table is a licensed Arizona real estate agent — but they work for the builder, not for you. They are trained to present incentive packages in the most attractive light, to handle objections, and to move you toward signing a purchase contract. That is their job, and they do it well. What they will not do is tell you that the builder next door is offering $15,000 more in incentives, that the community carries a $1,800/year CFD assessment that doesn't show up prominently in the brochure, or that their preferred lender's rate isn't actually the best available. This guide is the counterweight — the briefing you need before that first model home visit.
I'm Ryan Moxley, a top 1% REALTOR® in the Phoenix metro (My Home Group, ADRE SA643872000). I've negotiated new construction purchases with every major builder in this guide, and I've watched what changes when a buyer has representation versus when they walk in alone. My perspective throughout this guide is that of your advocate, not the builder's marketing department. New construction can be an excellent buy in 2026 — especially if you know which levers to pull. Let's cover every one of them.
The table below provides a side-by-side snapshot of all ten major builders active in the Phoenix metro as of mid-2026. Price ranges reflect base pricing at the time of publication; actual transaction prices vary significantly by community, lot premium, and design center selections. Quality tier ratings are Ryan's assessment based on direct buyer experience.
| Builder | Price Range (Metro) | $/Sqft Typical | Quality Tier | Std. Inclusions | Energy Efficiency | Build Timeline | Typical Incentive 2026 | Outside Lender OK? | Warranty (ARS §12-1361) |
|---|---|---|---|---|---|---|---|---|---|
| D.R. Horton | $290K – $550K | $155–$195 | Entry-Volume | Basic/Standard | Code Minimum | 30–90 days (inventory) / 4–6 mo (to-build) | $10K–$30K (tied to DHI Mtg) | Partial – lose incentives | 10yr/8yr/1yr + DHI warranty |
| Meritage Homes | $380K – $700K | $185–$230 | Mid-Premium | Elevated Standard | ★★★★★ Best-in-class | 4–7 months | $15K–$40K | Reduced incentives | 10yr/8yr/1yr + Meritage warranty |
| Taylor Morrison | $450K – $900K | $210–$270 | Mid-Premium | Above Average | ★★★★☆ | 4–8 months | $20K–$60K (tiered, flexible) | Most Flexible | 10yr/8yr/1yr + TM warranty |
| Shea Homes | $500K – $1.2M | $240–$340 | Premium | High Standard | ★★★★☆ | 5–8 months | $15K–$35K | Reduced incentives | 10yr/8yr/1yr + Shea warranty |
| Richmond American | $380K – $650K | $185–$225 | Mid-Range | Basic (design center upgrades key) | ★★★☆☆ | 5–8 months | $20K–$50K (design center focused) | Yes (HomeAmerican competitive) | 10yr/8yr/1yr + RA warranty |
| Lennar | $300K – $600K | $162–$205 | Entry-Mid | High (Everything's Included) | ★★★★☆ | 30–90 days (inventory) / 4–6 mo | $20K–$50K (West Valley aggr.) | Incentive reduction | 10yr/8yr/1yr + Lennar warranty |
| Toll Brothers | $600K – $2M+ | $280–$480 | Luxury | Premium Standard | ★★★★☆ | 8–14 months | $30K–$80K (rate buydown focus) | Reduced (Toll Mtg competitive) | 10yr/8yr/1yr + TB comprehensive |
| TRI Pointe Homes | $500K – $1.1M | $230–$310 | Premium | Above Average | ★★★★☆ | 5–8 months | $15K–$40K | Reduced incentives | 10yr/8yr/1yr + TRI Pointe warranty |
| Mattamy Homes | $400K – $750K | $195–$245 | Mid-Range | Standard Plus | ★★★☆☆ | 5–7 months | $15K–$35K | Reduced incentives | 10yr/8yr/1yr + Mattamy warranty |
| Beazer Homes | $310K – $500K | $160–$205 | Entry-Level | Energy Star Standard | ★★★★☆ (Energy Star) | 4–6 months | $10K–$25K | Reduced incentives | 10yr/8yr/1yr + Beazer warranty |
Builder incentives are almost always tied to using the builder's preferred lender and title company. If you use an outside lender, incentives typically drop by 50–100%. However, the builder's preferred lender rate is not always the best rate — especially for VA, FHA, and jumbo loans. Running a side-by-side comparison before committing to the lender is essential. In 2026, we've seen Taylor Morrison and Richmond American be the most willing to work with outside lenders without gutting the total package.
America's largest homebuilder by volume, D.R. Horton builds more homes in the Phoenix metro than any other company — and it shows. Their competitive advantage is speed and price. Standing inventory homes in markets like Maricopa, Buckeye, El Mirage, and northern Queen Creek can close in 30 to 45 days, which is a genuine differentiator when resale inventory is thin. Their core Express Homes line at the lower end of their range represents some of the most affordable new construction per square foot available anywhere in the valley in 2026.
Build quality at D.R. Horton is consistent but basic. You're getting code-compliant construction with standard-grade fixtures, cabinets, and finishes. Their energy performance meets code minimum but doesn't exceed it — expect utility bills in Phoenix summer to be noticeably higher than in a Meritage or Beazer product of similar size. The construction speed means less attention to detail in some trades; independent pre-drywall inspections on DHI homes frequently turn up minor framing and rough-in issues that need correction before close. That said, DHI has a dedicated warranty team and a high volume of warranty claims, which means their processes are mature even if their responsiveness varies by division.
DHI Mortgage is D.R. Horton's captive lending arm and the engine of their incentive packages. In 2026, DHI has been offering 2-1 temporary buydown programs (rate 2% below market in year one, 1% below in year two), permanent rate buydowns on select communities, and design center credits. The catch: virtually all of these incentives evaporate or shrink sharply if you use an outside lender. This creates real pressure on buyers to stay in the DHI Mortgage ecosystem, even when an outside lender might offer better long-term terms. Run the numbers: a $15,000 incentive package sounds large, but if the DHI rate is 0.375% above what your credit union or mortgage broker can deliver on a $450,000 loan, you'll pay significantly more over 30 years than you saved upfront.
Communities to watch in 2026: Tartesso West (Buckeye) is seeing aggressive DHI incentives to move inventory; Festival Ranch (Buckeye) has a mix of standing inventory and to-build options; Surprise and El Mirage locations offer the lowest absolute prices in the metro for new construction. CFD assessments are present in virtually every DHI master-planned community — always ask for the district name and call the county assessor to verify the current levy before signing.
Target 1: Start with price, not incentives. DHI's base prices have more softness than their sales team will volunteer, especially on standing inventory. Ask specifically what the builder can do on price before discussing the incentive package.
Target 2: Push for incentive reallocation. If you're using DHI Mortgage anyway, ask whether design center credits can be converted to additional rate buydown points — permanent buydown is almost always better than kitchen upgrades you could add later.
Target 3: Lot premium negotiation. DHI lists lot premiums as fixed, but on unsold inventory that's been sitting 60+ days, there is room. Having a buyer's agent who can show comparable unsold lot data from other DHI communities strengthens this ask considerably.
If you're buying new construction in Phoenix and energy efficiency matters to you — and in a market where summer cooling bills regularly exceed $400/month in a poorly insulated home, it should matter to every buyer — Meritage Homes belongs at the top of your list. Meritage has made energy performance their genuine, substantive competitive differentiator, not a marketing tagline. Standard on every Meritage home: spray foam insulation (not batt) in the attic and walls, low-e double-pane windows, Energy Star certification, blower door testing at rough-in and close, and a whole-house systems approach to air sealing. The result in Phoenix's extreme climate is utility savings that consistently run $150–$250 per month versus comparable homes built to code minimum. Over a 10-year ownership period, that compounds to $18,000–$30,000 in real dollars — easily matching or exceeding the price premium Meritage commands over entry-level builders.
Meritage's Phoenix-area communities span several submarkets. In the West Valley: Goodyear, Litchfield Park, Verrado adjacent communities. In the East Valley: Gilbert communities along the Power/Higley corridors, Chandler communities south of Loop 202. Their "Smart Series" homes are a slightly more compact, value-engineered version of their standard line with smaller lots and streamlined floor plans — excellent for first-time buyers who want the energy performance without the full price tag. Standard series homes get more lot size, more standard inclusions, and more design center options.
Meritage Homes Mortgage is their preferred lending arm. They are somewhat more flexible than DHI on outside lender use — in active selling seasons they've been willing to preserve more of the incentive package for buyers bringing outside financing. That said, their base incentive packages in 2026 have been structured primarily around rate buydown programs, which play best when kept in-house. Ask specifically: "If I use my own lender, what is the net incentive available in closing costs?" — get this in writing before proceeding.
Target 1: Verify the energy package in writing. Every Meritage salesperson will mention spray foam and Energy Star, but get the specific specifications — R-values, window ratings, HERS index score — in writing as part of the purchase agreement. The spec sheet should accompany the purchase contract.
Target 2: On standing inventory, push for closing cost credits over upgrades — Meritage's design center prices reflect retail markup, and closing cost credits create immediate, real dollar value.
Target 3: Ask about HERS (Home Energy Rating System) score guarantees. A well-executed Meritage home tests in the 50–65 HERS range; a poorly executed one can come in 75+. The score difference is real money over time.
Taylor Morrison occupies a compelling middle position in the Phoenix new construction market: better build quality and community planning than entry-level builders, more flexible incentive structures than many premium builders, and active in some of the metro's most sought-after growth corridors including the TSMC-adjacent north Phoenix market. Their Terravella community in north Scottsdale/Phoenix and their Gilbert communities along the Greenfield corridor have been particularly active in 2026.
Taylor Morrison's incentive structure stands out in one critical way: they offer tiered incentive packages that allow meaningful reallocation across categories — price reduction, closing cost credit, design center allowance, or rate buydown. They are also, by a fair margin, the most flexible of the major builders on outside lender use. In 2026, Taylor Morrison has been willing to preserve 60–80% of incentive value for buyers bringing qualified outside financing, compared to the industry norm of 40–60%. This makes them a genuinely competitive choice for buyers with pre-existing lender relationships, VA entitlement, or jumbo loan needs that Taylor Morrison Home Funding may not compete well on.
Their design center experience is among the best in the mid-premium segment — showrooms that reflect current market trends, consultants who are knowledgeable rather than high-pressure, and a digital visualization tool that lets buyers see how selections layer together before committing. The move-in ready (spec) versus build-to-order distinction matters here: spec homes typically include a designer's curated selection package that can be attractive or polarizing depending on your taste, while build-to-order allows full customization with extended timelines of 6–8 months.
Target 1: Incentive reallocation. Ask specifically what the total incentive pool is in dollars, then request it restructured as permanent rate buydown points. Taylor Morrison sales managers have shown willingness to accommodate this that most competitors don't match.
Target 2: Model leaseback options. In slower selling environments, Taylor Morrison has offered model home purchases where the builder leases back the model for 12–18 months — these homes have premium finishes at base price because the builder wants them to look good for sales tours.
Target 3: Lot premium on corner or cul-de-sac lots. Taylor Morrison lots are priced individually; lots that have been available for 90+ days often have negotiable premiums, especially if you're building-to-order in a community with strong demand elsewhere.
Shea Homes is the outlier on this list in one significant structural way: it is a privately held company, family-owned and not subject to the quarterly earnings pressure that drives publicly traded builders to cut corners on construction quality during high-volume periods. That independence shows in the product. Buyers who have purchased from both Shea and a public builder at a similar price point consistently report better construction consistency, more responsive project manager communication during the build, and faster resolution of warranty issues. Shea's communities in Scottsdale, Queen Creek (Harvest and Fulton Ranch adjacent), Chandler, and the DC Ranch corridor represent some of the best-planned master communities in the metro.
Shea Mortgage has been competitive historically on conventional and jumbo rates. Their outside lender policy reduces incentives — typically to closing cost credits only rather than rate buydowns — but they haven't been as aggressive as DHI or Lennar in linking all value to captive financing. For buyers with established lender relationships or specialty loan needs, the math on using outside financing with Shea is often better than with entry-level builders, even after the incentive haircut.
The longer build timelines at Shea (5–8 months on average, with some custom-influenced designs running to 10 months) reflect a construction pace that prioritizes doing each phase correctly rather than maximizing throughput. Pre-drywall independent inspections on Shea homes find fewer issues than on entry-level builders, but they remain essential — the cost is low relative to the investment and the protection is real.
Target 1: Lot premium flexibility. Shea communities are often sold in phases, and lots remaining from earlier phases may have premiums that don't reflect current market conditions. This is the highest-leverage negotiation point with Shea.
Target 2: Design center selection flexibility. Shea offers a wider range of design options than most builders and will accommodate structural change requests (room additions, door repositioning, window additions) within defined parameters. Get all structural options locked before frame starts.
Target 3: Phase-end incentives. Shea tends to increase incentives as a community phase nears sellout — the last 10–15 homes in a phase often carry better deals than the first 10–15.
Richmond American Homes occupies a unique position in the Phoenix new construction market because of their deep design center customization model. Where D.R. Horton and Lennar essentially deliver what you see in the model home (with limited upgrades), Richmond American starts with a base price that reflects a more stripped-down standard specification and then invites — actively encourages — buyers to build up the home through their design center. The typical buyer spends $30,000–$80,000 above the base contract price at the Richmond American Home Gallery design center in Tempe, selecting everything from flooring and countertops to exterior elevation and garage layout.
This model creates a genuine risk for unprepared buyers: the gap between the advertised base price and the final contract price can be jarring, especially for buyers who arrived comparing base prices across builders. The flip side is that buyers who engage thoughtfully with the design process get a home that reflects their actual preferences rather than a builder-curated spec package. HomeAmerican Mortgage, Richmond American's lending arm, has historically been competitive on conventional rates and has shown more flexibility on outside lender use than some competitors — they recognize that their buyer profile tends toward slightly more sophisticated purchasers who arrive with pre-existing banking relationships.
Richmond American communities in 2026 are concentrated in Queen Creek (multiple communities in the San Tan and Power Road corridors), San Tan Valley, Surprise (several Surprise Farms-area communities), and Goodyear. Their floor plan library is one of the largest among major builders, offering genuine variety in size and configuration rather than the 3–4 basic plans with elevation choices that entry builders provide.
Target 1: Negotiate base price BEFORE entering the design center. The design center experience is deliberately immersive and exciting — it's easy to overspend when you're emotionally engaged with your future home. Lock in any base price concessions and incentive structure before your first design appointment.
Target 2: Ask for design center budget reallocation to closing costs or rate buydown. Richmond American has shown willingness to convert design center credits to closing cost assistance — if you're planning modest selections, this converts real value.
Target 3: On standing (already-built or near-complete) inventory, Richmond American moves fastest with price concessions — they carry more design center-specific inventory than most builders because of their model, and priced-out designs create flexibility.
Lennar's "Everything's Included" positioning is their most important differentiating message in the market. Unlike builders who charge base price for a stripped-down home and then upgrade at the design center, Lennar bundles upgraded finishes — quartz countertops, tile backsplash, upgraded cabinets, stainless appliances, smart home package — into their base price. There is no design center. What you see in the model is largely what you get, with some structural option choices (den vs. bedroom, extended patio) available at contract. This simplifies the buying process considerably and makes Lennar comparisons to other builders more honest on a price-per-delivered-feature basis than raw square footage pricing suggests.
Lennar has been the most aggressive builder in the West Valley with incentive packages in 2026, particularly in Avondale, Buckeye (multiple communities), Laveen (Laveen Village communities), and portions of Peoria. In markets where inventory has built up — Buckeye and Laveen have seen the most buyer's market conditions — Lennar has offered rate buydowns, closing cost credits, and in some documented cases, genuine base price reductions. This flexibility on base price is somewhat unusual for major builders and reflects the volume pressure Lennar faces when community sellout timelines extend beyond target.
Eagle Home Mortgage is Lennar's preferred lender, and the incentive/outside lender dynamic follows the industry pattern: full incentive with Eagle, reduced or eliminated incentive with outside lender. Eagle's conventional rates have been competitive in 2026; their VA and FHA execution is serviceable but not exceptional. For buyers with complex loan scenarios — VA with jumbo, FHA with down payment assistance layering — an independent mortgage broker will often outperform Eagle even after accounting for the incentive haircut.
Target 1: Base price reduction. Lennar has shown more willingness than most major builders to reduce the base price (rather than layer on incentives) on standing inventory, particularly when community sellout has stalled. Ask directly: "What can you do on price?" before engaging on the incentive discussion.
Target 2: Incentive stacking. Lennar in 2026 has occasionally allowed stacking of community-level incentives (closing cost credits) with rate buydown programs — ask the community manager whether both programs can apply simultaneously.
Target 3: Lot choice. Without a design center, lot selection is your primary customization lever. Premium lots (backing a wash, backing a park, corner with extended setback) create long-term resale value. Push for lot premium reduction on less desirable lots — busy street adjacency, proximity to retention pond, powerline easement.
Toll Brothers is the benchmark luxury builder in the Phoenix metro — the measuring stick against which premium product from other builders is compared. Their Arizona operations produce some of the most thoughtfully designed master-planned communities in the valley, with deep attention to community architecture, amenity programming, and long-term neighborhood feel. Active communities include Regency at Aviano (age-qualified in north Phoenix), The Preserve at Vistancia (Peoria), Toll Brothers at Mesquite in north Scottsdale, and Las Sendas Preserve in Mesa. Their Paradise Valley and North Scottsdale offerings push the upper end of the price range significantly.
The Toll Brothers build process is meaningfully different from volume builders. Their Design Studio (centralized in Scottsdale for Arizona buyers) offers a full day of professional design consultation, with thousands of finish options across exterior, interior, structural, and landscape categories. The process is comprehensive and can feel overwhelming — buyers typically spend 6–8 hours across multiple studio appointments. The result is a genuinely customized home that reflects buyer preferences from floor plan to finish. Structural changes (room additions, ceiling height changes, secondary bedroom suite additions) are accommodated within parameters during the design phase before frame start.
Toll Brothers Mortgage is genuinely competitive on jumbo rates — they have deep relationships with institutional investors and access to proprietary jumbo products that often outperform retail bank offers for loan sizes above the conforming limit ($806,500 in Maricopa/Pinal counties for 2026). For buyers in the $1M–$2M range financing with a conventional jumbo product, Toll Brothers Mortgage deserves a serious rate comparison. The incentive structure at Toll often centers on permanent rate buydown points rather than design credits — appropriate given the price point where financing costs compound significantly.
Target 1: Lot premium reduction. In a $1.2M+ purchase, a $30,000–$50,000 lot premium is the highest-leverage negotiation target. Toll Brothers lists premiums individually, and lots that have been available beyond 90 days have meaningful room. This requires market data — a buyer's agent who has tracked recent lot premium transactions in the community is essential for this conversation.
Target 2: Permanent rate buydown through Toll Brothers Mortgage. On a $1.5M purchase, buying the rate down by 0.5% creates $375–$500/month in savings — far more valuable than design center credits. Ask specifically for the buydown cost versus incentive credit structure.
Target 3: Community amenity assessment timing. Toll Brothers communities often have amenity phases that open 12–24 months after first buyers close. Buying early in a community gets you a lower price but delays amenity access; buying late gets you immediate enjoyment but at higher price. Understanding the rollout schedule helps optimize this tradeoff.
TRI Pointe Homes brings a design-forward sensibility to the premium mid-market segment — their architecture tends toward cleaner, more contemporary lines than the traditional Mediterranean and Tuscan styles that dominated Phoenix new construction for decades. Active Phoenix communities in 2026 include developments in North Scottsdale, Cave Creek area, and Gilbert's Lyons Gate corridor. TRI Pointe's floor plans emphasize open living spaces, indoor-outdoor connectivity (important in Phoenix's livable winter and shoulder seasons), and primary suite amenities that punch above the price point.
TRI Pointe's design center process is curated — fewer choices than Toll Brothers, more choices than Lennar, with a focus on guiding buyers toward cohesive selections rather than an à la carte approach. Their construction quality sits firmly in the premium tier, with buyers consistently noting build consistency and superintendent responsiveness during construction as above-average experiences. TRI Pointe's Phoenix division is newer and smaller than their California operations, meaning the division leadership is often more accessible for escalation on complex buyer issues than at larger local operations.
Target 1: As a growing builder in the Phoenix market, TRI Pointe has more pressure to establish community velocity than a D.R. Horton. This creates meaningful flexibility on price and incentives for early buyers in new community phases — ask what's available for "community launch" buyers specifically.
Target 2: Design studio flexibility. TRI Pointe's curated selection approach means some buyers feel constrained by choices. Ask before signing whether custom substitutions (specific tile, specific cabinet profile not in the standard catalog) are available at any price — some division managers accommodate this.
Mattamy Homes, Canada's largest privately held homebuilder, has been growing its Phoenix presence steadily and now operates several active communities in Queen Creek, San Tan Valley, and the Maricopa submarket. Their Canadian heritage shows in an emphasis on community planning — greenbelts, pedestrian connectivity, parkway plantings, and community common areas tend to receive more investment than is typical at U.S. volume builders in the same price tier. Mattamy communities in Queen Creek (Mosaic at Copperleaf and similar projects) offer a suburban neighborhood feel that competes well against the more utilitarian layouts of entry-level builder communities nearby.
Construction quality at Mattamy sits solidly in the mid-range. They are not breaking new ground in energy performance or construction innovation, but their execution is consistent. Buyer feedback consistently notes that their construction superintendent communication during the build process is above average — weekly updates, accessible contacts, and responsive issue resolution are more common with Mattamy than with some larger public builders. For buyers in the $450K–$650K range in the East Valley suburban markets, Mattamy deserves a community-to-community comparison against Richmond American and Taylor Morrison at similar price points.
Beazer Homes occupies the entry-level new construction segment alongside D.R. Horton, with a meaningful differentiator: Energy Star certification is a standard feature on every Beazer home, not an optional package. Their Mortgage Choice program is worth noting — Beazer works with multiple third-party lenders and is one of the few major builders with a structure that explicitly allows buyers to compare multiple lenders and select the best rate, rather than locking them to a captive company. This transparency is genuine and buyer-friendly.
Beazer communities in 2026 are concentrated in Goodyear, Laveen, and the east Mesa/Apache Junction corridor. Their floor plans are value-engineered but functional, and the Energy Star standard means Phoenix-area utility costs are meaningfully lower than the code-minimum competition in the same price range. For first-time buyers who prioritize value, energy efficiency, and lender flexibility over premium finishes or community amenities, Beazer merits serious consideration.
The process of buying a new construction home in Arizona differs in important ways from a resale purchase. The table below maps key process milestones and how they vary across builders and buyer scenarios.
| Process Element | Entry Builders (DHI, Lennar, Beazer) | Mid-Premium Builders (Meritage, Taylor Morrison, Richmond) | Luxury Builders (Toll, Shea, TRI Pointe) | Notes / AZ Law |
|---|---|---|---|---|
| Earnest Money | $1,000–$5,000 (often non-refundable after 3 days) | $5,000–$15,000 (structured release) | $15,000–$50,000+ (phase release tied to milestones) | Builder contracts are NOT standard AAR forms; review carefully |
| Independent Inspection Rights | Allowed but not encouraged | Generally accommodated | Standard accommodation | Always insist; BINSR-equivalent applies under builder contract |
| BINSR / Inspection Period | Typically 10 days (mirrors ARS resale norms) | 10–14 days | 10–14 days | ARS §32-2183 Public Report must be provided before signing |
| Statutory Warranty | ARS §12-1361: 10yr structural / 8yr mechanical / 1yr workmanship | Same — all Arizona new construction | Same — all Arizona new construction | Builder additional warranties layer on top; get in writing |
| Rate Lock (Build-to-Order) | 60–90 day lock; re-lock fees apply | 90–180 day extended lock available | 180–360 day construction lock with float-down | Rate risk on 6–14 month builds is significant; ask upfront |
| CFD/SID Assessment | Present in nearly all communities | Present in many communities | Present in some communities | $500–$3,000+/yr; disclosed in Public Report; ARS Title 48 |
| Public Report | Provided at contract — required by law | Provided at contract — required by law | Provided at contract — required by law | ARS §32-2183; review CFD, HOA, CC&Rs; 5-day rescission right |
| Close of Escrow | Arizona dry funding state: close = record = keys on same day | Same | Same | No gap between funding and possession; unlike CA "wet" funding |
| HOA Disclosure | ARS §33-1806 disclosure in Public Report | Same | Same | HOA lien authority under ARS §33-1807; review CC&Rs carefully |
| Pre-Drywall Inspection | Builder walk offered; independent inspector allowed | Phase inspection access generally provided | Formal phase walks; independent inspector standard | Best time to catch framing, plumbing, electrical, insulation issues |
The vast majority of Phoenix new construction homes are built on post-tension concrete slabs — a foundation system using high-strength steel cables (tendons) tensioned after the concrete cures to create a rigid, crack-resistant slab. This is excellent construction technology in Arizona's expansive clay soils. However, post-tension slabs CANNOT be drilled, cut, or penetrated without engineering approval. A single severed tendon can cause catastrophic slab damage costing $20,000–$60,000 to repair. This means: no anchor bolts through the slab after construction, no pool excavation without a pre-pour utility survey, no floor drain additions, and extreme care with any contractor doing slab penetration work. Ask your builder for the tendon layout drawing and keep it with your home documentation permanently.
Community Facilities Districts (CFDs) and Special Improvement Districts (SIDs) are quasi-governmental entities created under ARS Title 48 to fund the infrastructure in new master-planned communities — roads, water, sewer, parks, landscaping, streetlights. The builder uses these mechanisms to avoid fronting infrastructure costs, spreading them instead over 20–30 years of homeowner property tax assessments. The annual assessment ranges from $500 to over $3,000 depending on community and infrastructure scope, and it appears as a separate line item on your annual property tax bill — not in the HOA fee, not absorbed into the purchase price.
Every Arizona builder is required to disclose the existence and amount of any CFD/SID in the Public Report provided at contract. However, the disclosure is dense and easy to miss if you're not specifically looking for it. Always ask: "Does this community have a CFD or SID assessment? What is the current annual amount?" Get the dollar figure, not just confirmation that one exists. On a 30-year mortgage, a $1,500/year CFD assessment represents $45,000 in additional cost — meaningful in any total-cost-of-ownership calculation.
Builder preferred lenders are owned by or have exclusive arrangements with the parent builder company — DHI Mortgage is owned by D.R. Horton; Eagle Home Mortgage is owned by Lennar. These lenders are not always worse than the market, but they are not always better, and they have no competitive pressure to be. The only way to know whether you're getting a fair rate is to get a competing quote from an independent lender for identical loan terms (loan amount, program, term, points) on the same day and compare the total cost. Incentives tied to the preferred lender can be worth it — but only if you've quantified the rate comparison first.
Builder design centers purchase finishes, fixtures, cabinets, and flooring at wholesale or near-wholesale pricing and sell them to buyers at or above retail. The markup on design center selections is real — typically 30–60% above what a buyer could source the same product for through independent vendors. This creates genuine math: if you're debating between $20,000 in design center upgrades or a $20,000 closing cost credit, the credit delivers $20,000 of real value while the design center selections deliver perhaps $12,000–$15,000 of product value at market prices. Closing cost credits, rate buydowns, and price reductions are almost always better value than design center allowances unless there are structural options (room additions, vaulted ceilings, extra bathrooms) that can only be added during the construction phase.
Caliche is a naturally occurring hardpan layer of calcium carbonate that exists at varying depths throughout the Sonoran Desert. In Phoenix metro soils, caliche can occur as shallow as 12–18 inches below grade or as deep as 8–10 feet, and it ranges in hardness from soft crust to material requiring jackhammer or blasting to break through. Builders excavate caliche for foundation work, but the caliche beyond the foundation footprint is left in place. This creates challenges for landscapers installing deep-rooted trees, homeowners installing pools (pool excavation through caliche can add $3,000–$8,000 to pool contracts), and drainage systems. Ask your builder whether caliche was encountered during grading and at what depth — this information helps you plan landscape and pool additions realistically.
New community HOAs are established by the builder (as the original declarant) and have minimal reserve funds in early phases — because there aren't enough homeowners yet to build reserves and because the builder controls the HOA board until enough homes are sold to transfer control to homeowners. This creates a risk: if major common-area repairs are needed before the HOA has adequate reserves, a special assessment to all homeowners can result. Review the HOA budget and reserve study (required to be provided under ARS §33-1806) at contract, and ask specifically about planned capital expenditures in the first 5 years of the community.
The builder's construction manager is not your inspector. They work for the builder. The builder's quality control team has a conflict of interest. Even with the best intentions, production pressure on new construction crews creates conditions where issues get missed or papered over. An independent inspector at pre-drywall and at final walkthrough costs $350–$600 total and is one of the highest-return expenditures in the entire transaction.
The assumption that a brand-new home doesn't need inspection is a costly myth. Every major home inspector association reports that new construction inspections reveal deficiencies at rates comparable to resale homes — the issues are just different. Where a resale home shows deferred maintenance, mechanical aging, and owner-modification issues, new construction shows installation problems, code compliance gaps, and coordination failures between trades that work in rapid sequence. Arizona does not license home inspectors (ASHI and InterNACHI credentials are the industry standards used instead), which means quality varies — always select an ASHI-certified or InterNACHI-certified inspector with specific new construction experience.
The pre-drywall inspection — conducted after framing, rough-in plumbing, electrical, and HVAC are complete but before insulation and drywall are installed — is the single most important inspection in a new construction purchase. Once drywall goes up, the entire structural, mechanical, and systems infrastructure is hidden for the life of the home. Issues found at pre-drywall can be corrected before they're enclosed; issues found at final walkthrough often require drywall removal to address. Request pre-drywall inspection access in writing as a condition of your purchase contract — most builders will accommodate it, though some have structured visit policies. Bring your inspector for 2–3 hours of thorough documentation.
Common findings on new Phoenix-area homes include: framing members not properly installed or notched incorrectly for HVAC ducts; plumbing rough-in at incorrect height requiring future contractor adjustment; HVAC supply and return sizing mismatched to room loads (contributing to hot and cold spots despite new equipment); insulation installed incorrectly with gaps around ceiling penetrations or attic hatch (catastrophic in Phoenix's 115°F summers); stucco weep screed installed too close to the finished grade (leading to stucco water intrusion); window and door penetration flashing missing or installed incorrectly; and electrical panel wiring not properly sized or labeled. None of these are catastrophic individually, and all are correctable at pre-drywall stage. After drywall, most require invasive repair.
A general home inspection on new construction runs $350–$500 for homes up to 3,000 square feet, $500–$700 for larger homes. A pre-drywall inspection typically runs $250–$350. Specialty inspections to consider: HVAC-specific inspection ($150–$200) for larger or more complex systems; pool inspection at close if a pool is included in the contract; structural engineer review if foundation concerns are raised during general inspection ($300–$600). Total investment for thorough new construction inspection coverage: $600–$1,100. Return on that investment when it catches a significant issue: potentially tens of thousands.
One of the most common and costly misconceptions among new construction buyers is that going directly to the builder — without a buyer's agent — saves money. It does not. Here's the structural reality: builders set commission budgets as a percentage of the contract price, and that budget exists whether or not a buyer brings representation. If you walk in without an agent, the builder keeps that budget. It does not reduce your price. It does not increase your incentive package. The builder captures the additional margin. This structure has been consistent across major Phoenix metro builders, and it doesn't change based on market conditions.
What a buyer's agent actually does in a new construction transaction: they know the market well enough to tell you whether the incentive package being offered is genuinely competitive or whether the builder offers more to buyers who push back. They know which communities are overpriced relative to comparable new construction a mile away. They know which builders' preferred lenders are currently competitive and which are not. They review the purchase contract — which is the builder's contract, drafted by the builder's attorneys to protect the builder — and identify terms that standard resale contracts do not include and that buyers should push back on. And they are present at your side throughout the construction process when issues arise, providing advocacy that the builder's sales team will not provide.
Most major Phoenix builders require that a buyer's agent register before the buyer's first visit to a community in order for the agent to receive commission and represent the buyer. If you visit a model home without your agent — even just to look around — some builders will claim "broker registration" has been forfeited. The practical rule: if you're considering new construction, identify your buyer's agent first, then visit communities. Your agent should provide their business card to the on-site sales representative at your first visit. This takes 30 seconds and protects your representation for the entire transaction.
A buyer under contract on a $520,000 Meritage Homes property in Goodyear was offered a $25,000 incentive package tied to using Meritage Homes Mortgage. The alternative: use an independent mortgage broker who had quoted a rate 0.375% lower on the same conventional loan, but lose $15,000 of the incentive (down to $10,000 in closing cost credit only).
The lesson: always run the full 5-year comparison before deciding on lender. The incentive package amount is rarely the whole story.
New master-planned communities in Phoenix almost universally include a homeowners association (HOA), and the quality of that HOA — its governance, its financials, its amenity investment, and its enforcement culture — can dramatically affect your quality of life and your resale value. Yet most new construction buyers spend more time in the design center selecting cabinet hardware than they spend evaluating the HOA they're committing to for the duration of their ownership.
Arizona HOA law provides specific disclosure requirements. Under ARS §33-1806, sellers (including builders) must provide HOA financial statements, CC&Rs, bylaws, rules and regulations, and a budget (including reserves) to buyers prior to contract. Buyers receive a five-day rescission right after receipt of HOA documents. Under ARS §33-1807, HOAs have lien authority for unpaid assessments — delinquent dues can result in an HOA lien that affects your ability to sell or refinance. ARS §33-1803 provides homeowners the right to inspect HOA records upon request.
Key HOA questions to ask before signing any new construction contract: What are the current monthly dues? What does the dues cover (common area maintenance, exterior landscape, community pool/fitness, water for irrigation, trash, security)? What is the reserve fund balance and what percentage of the funded reserve study is the HOA currently hitting? Are there any pending or planned special assessments? Does the HOA restrict short-term rentals — and if so, what are the enforcement mechanisms (relevant given ARS §9-500.39, which prevents municipalities from banning STRs but allows HOA CC&Rs to do so)? Is the HOA professionally managed or self-managed, and who is the management company?
HOA fees in Phoenix new construction range from $0 (rare, typically on non-master-planned communities or where the builder has structured a community with minimal common areas) to $300+ per month for communities with resort-style amenities including pool complexes, fitness centers, tennis, pickleball, sand volleyball, community parks, and walking trail maintenance. Higher HOA fees are not inherently bad — if the community delivers genuine amenity value and professional management, the fees can support stronger resale pricing. The risk is communities where builders fund amenity phases in stages, meaning early buyers pay HOA dues for amenities that don't yet exist and may not open for 12–24 months.
The single greatest financing risk in a new construction purchase is rate exposure during construction. A home contracted in January with an 8-month build timeline and a 60-day rate lock from the preferred lender will see that lock expire approximately 180 days before closing. If rates move adversely in that period, the buyer is exposed to the full rate movement — and on a $600,000 loan, a 0.5% rate increase costs $180/month for 30 years. On a $1M loan, it's $300/month. This is real money, and it's a risk that most buyers don't quantify at contract signing.
The solution: ask specifically about extended lock programs. Toll Brothers Mortgage, Taylor Morrison Home Funding, and Shea Mortgage all offer extended lock products (180–360 days) at a cost — typically 0.1–0.25% of the loan amount as a fee, or a rate premium of 0.125–0.25% during the lock period. Float-down provisions (the ability to capture a lower rate if rates fall during the lock period) are available from some lenders for an additional fee. Running the math on extended lock cost versus rate risk exposure is essential for any build-to-order purchase with a timeline exceeding 90 days.
VA loans are fully applicable to new construction in Arizona, but the execution requires attention. The VA appraisal (required on all VA purchases) evaluates the home against comparable sales and the VA's minimum property requirements. In rapidly appreciating markets, VA appraisals can come in below the contract price — creating a situation where the builder either reduces the price, the buyer makes up the gap in cash, or the deal falls apart. Builders who resist VA financing most often cite appraisal risk. In 2026, with West Valley new construction pricing stabilized or moderating in some submarkets, VA appraisal gaps are less common than in 2021–2022, but they remain a real consideration. VA funding fees for first use: 2.15% for any down payment under 5%, reduced for larger down payments, waived entirely for veterans with service-connected disability. The 2026 VA conforming loan limit in Maricopa and Pinal Counties is $806,500 with zero down payment required below that threshold.
Arizona's HOME Plus program (administered by ADOH, the Arizona Department of Housing) provides 3–5% of the loan amount as a forgivable grant — usable for down payment and/or closing costs on new construction purchases. Requirements: 640+ credit score, household income below $122,100, and the property must be a primary residence. Compatible loan types include FHA, VA, Conventional, and USDA. Most major builders' preferred lenders are approved HOME Plus lenders, but independent mortgage brokers may also participate and often have broader product knowledge. The grant is forgivable over a 3-year period — no repayment required if you remain in the home.
Investors purchasing new construction as rental property have access to DSCR (Debt Service Coverage Ratio) loans, which qualify based on projected rental income rather than personal income. Requirements: typically 20–25% down payment, 680+ credit score, and a DSCR (monthly rent ÷ monthly mortgage payment including taxes and insurance) of 1.0–1.25. New construction is attractive for DSCR investors because the property carries no deferred maintenance, builder warranties cover the early ownership period, and the all-in cost is predictable. TSMC and Intel workforce demand in north Phoenix and Chandler makes those submarkets particularly compelling for DSCR rental investment in new construction.
The most significant structural driver of north Phoenix new construction demand in 2026 is TSMC's Fab 21 campus on the Deer Valley Road corridor in north Phoenix. Taiwan Semiconductor Manufacturing Company — the world's dominant semiconductor foundry — committed $65 billion to the Arizona investment in a multi-phase program that represents the largest foreign direct investment in U.S. manufacturing history. Phase 1, producing 4nm and 3nm chips, is fully operational as of 2026. Phase 2 (2nm, next-generation process technology) is under active construction. The campus directly employs 10,000+ workers at high-wage positions; the indirect job creation from suppliers, contractors, and service industries is estimated at 50,000+ additional positions across the valley.
The effect on new construction in the immediate corridor is dramatic. Communities within reasonable commuting distance of the Deer Valley campus — roughly the area bounded by Happy Valley Road to the south, Scottsdale Road to the east, Lake Pleasant Parkway to the west, and Carefree Highway to the north — have seen sustained demand pressure that has kept builder lot premiums elevated even as West Valley inventory has softened. Taylor Morrison communities in this corridor (including the north Phoenix Terravella-area communities), and Meritage communities in the Norterra master plan area, are particularly well-positioned geographically for TSMC workforce housing demand.
The Arizona State Land Department (ASLD) has been active in auctioning state trust land parcels in the Deer Valley corridor for residential development — the combination of TSMC demand and Arizona's structured land auction process (at azland.gov) means that new community formations in this corridor will continue as supply permits. Buyers interested in this submarket should understand that the premium they're paying for location is backed by genuine economic fundamentals, not speculative demand — semiconductor manufacturing facilities do not relocate on short timelines, and the TSMC investment has a 20–30 year time horizon baked into its physical plant.
Intel's operations in Chandler ($20 billion total investment, 12,000+ employees at the Fab 52 and Fab 62 campuses on Dobson Road) create a parallel workforce housing demand story in the East Valley. Gilbert, Chandler, and south Scottsdale new construction communities in a 15-mile radius of the Intel campus have benefited from sustained workforce demand. Builders who are active in the Gilbert Power/Higley corridor and the south Chandler/Queen Creek transition zone are directly addressing this demand pool.
A TSMC engineer with a 5-year relocation from Taiwan is evaluating new construction in the Norterra/Happy Valley/Anthem corridor for a primary residence. Here's the 2026 market reality:
After touring multiple builder communities, comparing incentive packages, and navigating the model home experience, the challenge becomes synthesizing all the information into a rational decision. The following checklist covers the questions that matter most — the ones that don't always come up in model home conversations but that distinguish buyers who made great decisions from buyers who second-guessed their choice at the two-year mark.
Before leaving any model home, get answers (in writing, or take notes on your phone) to: What is the base price of this specific plan on this specific lot? What are all lot premiums on available lots? What is the current incentive package in dollar terms? What incentives are available if I use my own lender? What is the CFD/SID assessment (ask for the dollar amount, not just whether one exists)? What is the HOA monthly fee and what does it cover? When does the community amenity package open? What is the estimated monthly payment on this home at current rates including HOA and CFD? What is the estimated build timeline? What is the earnest money structure and when is it non-refundable?
Comparing a 2,400 square foot D.R. Horton in Buckeye to a 2,400 square foot Meritage in Goodyear requires more than comparing sticker prices. The complete comparison should include: base price PLUS standard design selections to an equivalent finish level; lot premium (these vary dramatically); HOA monthly fee × 12 months; CFD annual assessment; estimated utility cost differential (energy efficiency matters enormously in Phoenix); estimated warranty service quality; and community amenity value relative to your lifestyle priorities. Putting all of these in a spreadsheet and comparing total 5-year cost of ownership is tedious but transforms the decision quality.
Walk away or investigate further if you observe: a builder who is reluctant to allow an independent inspector at pre-drywall stage (this is a major warning sign); a sales representative who cannot or will not provide the Public Report before asking you to sign; incentive packages that seem unusually large relative to competing builders in the same market (may signal a community with underlying issues — check permit pulls and sales velocity); CFD assessments that were not voluntarily disclosed and only emerged when you asked directly; HOA documents showing reserve fund underfunding below 70% of the funded reserve study; and communities where a large percentage of lots remain unsold 18+ months into the community launch (may indicate pricing or location issues that will affect your resale).
Under ARS §32-2183, every new subdivision sale in Arizona requires the buyer to receive and sign a receipt for the Public Report before contract execution. The Public Report is produced by the Arizona Department of Real Estate (ADRE) and contains: the subdivision plat and legal description; the developer's financial disclosures; all CC&Rs and HOA governing documents; CFD/SID assessment details; utility provider information; school district information; and any material facts the ADRE has required the developer to disclose. Read it. It takes time — some Public Reports run 80+ pages — but it is the comprehensive legal disclosure of everything that will govern your ownership of the property.
First-time buyer, maximum value: Beazer Homes (Energy Star standard + Mortgage Choice flexibility) or D.R. Horton Express Homes (fastest closing on standing inventory)
Energy-conscious buyer: Meritage Homes (spray foam + blower door testing + Energy Star is genuinely best-in-class in this price range)
Customization-focused buyer: Richmond American (deepest design center options) or Taylor Morrison (most flexible incentive reallocation + outside lender friendly)
Move-up buyer, premium product: Shea Homes (privately held = consistent quality, responsive warranty) or TRI Pointe (design-forward, premium finishes)
Luxury buyer: Toll Brothers (no close competitor on community planning, design studio depth, and construction management at the $800K+ price point)
TSMC corridor buyer: Meritage or Taylor Morrison (best combination of energy performance + location + incentive flexibility in north Phoenix)
Phoenix new construction in 2026 offers genuine opportunities for buyers at every price point — from first-time buyers finding real value in West Valley communities with 5% down and $25,000 incentive packages, to luxury buyers commissioning custom-influenced Toll Brothers or Shea homes in master-planned North Scottsdale environments. The market is bifurcated, competitive in some submarkets and buyer-friendly in others, and navigating it successfully requires knowing which side of that line your target community sits on. The builders covered in this guide range from entry-volume operations where speed and price are the whole value proposition to luxury builders where construction quality, community design, and customer experience justify a significant premium. None of them are universally good or universally bad — they serve different buyers at different price points, and the right choice depends on your specific priorities.
What every new construction buyer in Phoenix shares is the benefit of working with a knowledgeable, experienced buyer's agent who negotiates with these builders regularly. The incentive packages, the contract terms, the warranty language, the inspection access rights, the CFD disclosure — these are all variables that an experienced agent can optimize in your favor, at no cost to you. If you're considering new construction anywhere in the Phoenix metro — whether Buckeye, Gilbert, north Phoenix, Scottsdale, or anywhere in between — I'd welcome the opportunity to be that agent for you. Call or text me at (480) 227-9143 or reach out below. I know every major builder community in the valley, I know what's negotiable and what isn't, and I work for you — not for the builder.
Which builders and communities are you considering? Let's compare your options, run the total cost numbers, and make sure you're getting the best possible deal — at no cost to you.