Why Invest in Arizona Real Estate?
While for years it has been known for its condo market, Arizona has an increasing number of available single-family rental properties, as well as a demand that exceeds supply.
The Copper State is home to a number of American landmarks, such as the Grand Canyon, Hoover Dam and Petrified Forest. These are just some of the reasons why Arizona gets millions of tourists each year, which supports both job and real estate markets. Trade, business and hospitality services are the strongest sectors, and they have contributed to staggering increase in employment throughout the state. As a result, Arizona is emerging as a desirable place for investing in real estate.
Investment Considerations for Arizona Real Estate
- Affordability of homes– The median price of an Arizona home is $239,000, which isn’t a lot higher than the median price for the whole of US – $216,000. Especially when you compare this to the more expensive states, such as Hawaii and its median price of $755,000, Arizona is capable of accommodating all budgets. In fact, Phoenix – its capital – has been ranked the 13th most affordable city in the US. For real estate investors in Arizona, this means you can enter the real estate market at a lower cost.
- Growing Economy – During 2017, Phoenix alone managed to add 51,000 new openings to its job market. This is a staggering 140% increase from 2007 onward. It was made possible by multiple large companies relocating to the city and affecting not just the growth of employment, but the flourishing of the real estate market as well. Since the city is now in need of both residential and commercial real estate, it makes this a desired real estate market. On the other hand, such economic growth is more or less limited to metropolitan and suburban areas. As a real estate investor in Arizona, you have to do a bit more research into finding solid investment cities and neighborhoods.
- High demand for housing units–Thanks to its growing economy and favorable living conditions, Arizona is being flooded by fresh manpower and people in search of affordable homes. As a result, the demand for housing units is a lot higher than the existing supply. This makes it harder for real estate investors to seize a good opportunity. On the other hand, developers are working toward meeting the demand, which is why new home supply already increased by 6% during 2017. This trend likely to continue in 2018 as more and more people seek affordable homes. For real estate investors, this means they will likely to see an increase in appreciation for their investment property in Arizona.
- Suburban development – While it is among the top 20% of all American cities when it comes to affordability, Phoenix is still experiencing a rise in real estate prices. This is why we are looking at the beginning of a new shift – first-time homebuyers looking for properties in suburban areas. This might be the best time to invest in a single-family home in the Arizona suburbs.
What are the Best Markets to Invest in Arizona?
With an increase number of young newcomers in Arizona, the state is experiencing a considerable shift regarding real estate. Instead of condos and retirement homes, people are looking for single-family properties instead. While Phoenix presents enough opportunities in itself, suburban and luxury markets seem more promising with each passing day. Arizona seems to really be bouncing back and offering more and more investment opportunities.
Getting Started in Real Estate Investing? HomeUnion® Can Help
HomeUnion® is the leader in residential real estate investment. With the use of big data and machine learning, we analyze information on millions of single family homes in Arizona; and across the United States and calculate home values RENTestimate for every property in Arizona. If you’re looking for the best investment properties across the country, visit our comprehensive investment site.