Arizona is undeniably one of the largest and most popular states in the US. Phoenix, its capital city, presents many favorable factors which not only make it one of the best cities to live in, but also to invest in. It offers something for everyone. Arizona has friendly weather, unique cultural attractions, and offers modern recreational, dining, entertainment, and shopping facilities.
The real estate investment market in Arizona has continued to thrive in the recent past. Apart from other pull factors, the region presents potential buyers with a wide range of properties to choose from, including single family residences, townhomes, twin homes, condominiums, and patio homes. Below are the top five factors driving the Arizona real estate market:
Economic growth
The state’s economy has continued to gain momentum over the years resulting in a direct impact on the real estate market. Arizona has registered significant growth in existing industries and an increase in startup businesses. Several new companies have also opened offices or transferred their headquarters to Arizona, thanks to the friendly business environment.
The combined impacts are increased job opportunities, increased income, improved standards of living, and reduced unemployment levels. Phoenix, for instance, has recorded numerous employment opportunities in retail, finance, and healthcare sectors in the economy. This thriving economic growth in Arizona has attracted many people to the region, thereby increasing the demand for both commercial and residential properties. Economic experts have projected that Arizona will experience sustained economic growth in 2018. This implies that the real estate industry will equally continue to experience growth.
Changing Demographics
Arizona’s population has grown significantly over the years. The state’s other population demographics such as education level, age, economic status, and migration patterns have also changed. An increase in Arizona’s population has stimulated the demand for more housing units. Many people are employed; hence they can buy/lease properties. Age has also diversified the real estate market as Generation X, baby boomers, and millennials have varying needs and preferences. The ever-increasing population of millennials in Phoenix, and other cities in Arizona, will continue to keep the industry vibrant.
The significant increase in population has equally increased the demand for other goods and services, hence the need for properties such as apartments, hospitals, restaurants, and office spaces. With the increasing numbers and affluent demographics, investors find it promising to inject more funds into real estate business.
Friendly Interest Rates
Interest rates play a central role in the real estate market since a majority prefer a mortgage payment plan. Low-interest rates translate to a low cost of a mortgage, hence high demand for properties.
Arizona’s mortgage interest rates remain relatively low making it more appealing for residents to buy than rent a property. Buyers get up to below four percent as interest on fixed loans. The presence of hard money lenders has also boosted the real estate market in Phoenix and other cities in the region. These private investors have made it easy for many to access hard money loans quicker than when dealing with banks.
Competitive Pricing/Affordability
Even though Arizona falls in the top five metro regions in the United States, property prices have remained relatively affordable. The average price of a home in Phoenix stands at $255,000. Many, therefore, find relatively cheaper to own a home in Arizona.
Other than property prices, the cost of living in Arizona is relatively low compared to other big states in the US. This implies that you will spend less on food, gas, healthcare, transportation, and education. Life is even cheaper in Bullhead City and Tucson. The friendly socioeconomic environment has equally played a significant part in the region’s thriving real estate business.
Lifestyle
Arizona has varying climate conditions in several of its cities, ranging from warmer Phoenix and Tucson to cooler Prescott and Flagstaff. This makes it suitable for diverse lifestyles. The region has some of the best golf courses, hiking trails, and unique local events. In addition to exceptional social amenities, Arizona is safer and more secure than other parts of the United States.
Arizona should always top your list of places to visit, work, and live. Apart from other booming sectors of the economy, real estate presents an ideal investment opportunity. It has grown over the years, and if experts’ projections are to buy, then it is the next frontier in business. If you’d like to invest in real estate in beautiful Arizona, please contact Capital Fund 1 for hard money loan applications. Our experts have excellent experience in the sector and are always ready to offer professional guidance to each of our clients. Best of all, we don’t check credit scores, and nothing should stand in your way of investment property ownership.