Rising water utility costs in Gilbert, Arizona, are creating new complications in the local real estate market. Prospective homebuyers are now scrutinizing utility statements, and some current residents are contemplating moving as rates are projected to more than double compared to 2023 levels.
The issue, stemming from a series of steep rate increases implemented by the town, has moved from kitchen table discussions to a significant factor in property transactions. Real estate agents report that the high cost of water has become a primary concern for both buyers and sellers in the otherwise desirable community.
Key Takeaways
- Water rates in Gilbert are on track to be more than 100% higher by next year compared to 2023 rates.
- Prospective homebuyers are now requesting a full year of a seller's utility bills before making offers.
- Real estate agents confirm that high water costs are a major point of discussion and concern in transactions.
- Some residents are considering leaving Gilbert due to the mounting utility expenses.
- The Town of Gilbert plans to conduct a third-party audit of water meters and systems in response to resident feedback.
A New Hurdle in Home Buying
The Gilbert housing market, described by local agents as balanced, is facing an unexpected challenge. While homes typically remain on the market for about 90 days, a new due diligence step is emerging for potential buyers: a deep dive into water bills.
Ann Schude, a real estate agent working in the area, recently encountered a request she found out of the ordinary. "The buyer’s real estate agent asked the seller to provide a year of Town of Gilbert statements," she said, noting the buyer was aware of recent reports about rising costs.
This level of scrutiny highlights a growing apprehension among those looking to move into the community. Schude acknowledged the potential for sticker shock when buyers see the actual figures. "That would be a huge sticker shock," she commented. "I could see how someone could be turned off. I don’t want to deal with it."
By the Numbers
By 2026, water rates for Gilbert residents are expected to be more than 100% higher than they were in 2023, following a series of approved rate hikes.
Current Homeowners Weigh Their Options
The impact is not limited to new buyers. For months, current Gilbert residents have voiced concerns over bills they describe as skyrocketing. Hundreds have reported unusually high costs, prompting some to take matters into their own hands by personally tracking their water usage amid fears of faulty meters.
This financial pressure is causing some to reevaluate their future in the town. Dave Rosenfeld, another Valley real estate agent with a focus on Gilbert properties, has observed this trend firsthand.
"Right now, water has become obviously the big thing in Gilbert specifically," Rosenfeld explained. "So there are a lot of people right now that are exploring what do I do. And what I do may be, in fact, leaving the town."
This sentiment introduces a new dynamic to the local market, where the cost of living—specifically a single utility—is becoming a potential driver for relocation.
Town Officials Address Community Concerns
In response to the growing public discussion, the Town of Gilbert has acknowledged the difficulties residents face. Officials maintain that the rate increases are essential for long-term stability.
In a statement, the town explained that the current utility rates are necessary to fund the maintenance of aging infrastructure and to secure a reliable water supply for the community's future. They emphasized that Gilbert continues to be a popular place to live.
Infrastructure and Growth
Municipalities across the Southwest are grappling with the dual challenges of updating decades-old water infrastructure and managing resources amid regional drought conditions and population growth. These factors often necessitate significant rate adjustments to fund capital improvement projects.
To support its claim of continued desirability, the town pointed to recent data. "Just last month, our Customer Service team helped set up 1,003 new utility accounts, showing that people still want to call Gilbert home," the statement read. Officials also noted that while regional home sales have declined, Gilbert's market remains competitive compared to neighboring cities.
Steps Toward a Solution
The town has committed to addressing the public's concerns directly. Plans are underway to host a series of listening sessions to gather feedback from residents. More significantly, officials announced their intention to commission a third-party audit of the town's water meters and its Advanced Metering Infrastructure (AMI) systems.
This audit aims to independently verify the accuracy of the town's billing and metering equipment, a direct response to residents who have questioned the validity of their usage data. The town has directed residents to its website for ongoing updates on these initiatives.
As Gilbert navigates this period of adjustment, the interplay between utility costs and the housing market will remain a critical issue for homeowners, buyers, and town leadership alike. The outcome of the planned audit and the community's response will likely shape the town's economic landscape for the foreseeable future.





