Phoenix–Tucson Passenger Rail Gains Momentum: What It Could Mean for Multifamily Growth

Arizona is one step closer to a passenger rail connection between Phoenix and Tucson. The Federal Railroad Administration has approved the Arizona Department of Transportation’s initial planning documents, paving the way for a full review of the proposed 160-mile route that could eventually be operated by Amtrak. 

Governor Katie Hobbs called the development “a big step forward for Arizona,” noting the project’s potential to drive economic growth and expand transit opportunities for residents. The plan, supported by an initial $3.5 million commitment from the state, will soon advance to a service development phase—expected to take two to three years—focused on station locations, infrastructure upgrades, and ridership forecasts. 

For multifamily investors and developers, expanded transit infrastructure could reshape regional housing demand. Improved connectivity between Phoenix, Tucson, and surrounding communities may spur transit-oriented development, increase property values near proposed stations, and encourage denser, more sustainable housing options. 

As Arizona grows, access to efficient transportation will increasingly influence where people choose to live and invest. The Phoenix–Tucson rail project represents more than a transportation milestone—it’s a glimpse into the state’s evolving urban future.