The Greater Phoenix area has come a long way from its humble roots when it was created as a farm town back in 1881. If you aren’t from the area, it’s difficult to believe that Phoenix actually ranks number five on the list of the biggest cities in the United States.
The state of Arizona is considered one of the fastest growing economies in the entire country, with Phoenix at the top of the list. According to information from a recent U.S. Bureau of Economic Analysis State Data, the state is among the top five when it comes to fast growth, having an increase of 4.3 percent in total gross domestic product. Considered the most populous city in the state, the area of greater Phoenix is still a huge part of this growth and there is no sign it’s going to slow down any time soon.
The greater Phoenix area’s job market is also seeing significant growth. Recent statistics make it clear that the state of Arizona, as a whole, is going to outpace the country regarding job growth, with most of the opportunities being available in the capital of the state. Excluding the area of Phoenix, Maricopa County, there may be an increase in 2.1 percent in overall employment growth each year, with the greater Phoenix area experiencing an increase of 1.5 percent. What may be surprising to many people is that the job market has grown in some less than expected areas. Before the recession, the majority of the job opportunities were derived from construction, retail sales, and real estate. Now, however, business and financial services, along with manufacturing and healthcare, are meeting if not outpacing the industries that have been previously mentioned. Also, Phoenix has been dubbed as the “Wall Street West,” and it is ranked as number three on the list of different cities that have the highest number of workers in the financial sector.
The specific statistics surrounding job growth are further supported by the increase in overall demand for total office real estate, which actually outpaced the supply in 2018 according to information provided in the Phoenix Market Outlook Report that was conducted and then published by CBRE Research. The report also read that the net absorption has been outpaced by the supply since 2011 and is further pushing down the total office space vacancy from the recessionary peak that was 26.2 percent to 15.2 percent in quarter four of 2018.
Office space has not been the only portion of the real estate market in Phoenix that’s in high demand according to the above-mentioned report. There’s been a higher demand for multifamily housing which has outpaced the new supply for eight years in a row and has pushed down the increase from the recessionary peak which was 11.6 percent to under 4.5 percent during 2018. Approximately 8.300 new units, primarily employment centers and submarkets were added into the market, which is now up from the 6,300 new units created in the previous year.
With a beautiful and sunny state and a growing economy this state offers a vibrant community. The greater Phoenix continues to provide countless opportunities for both visitors and residents to enjoy virtually all hobbies imaginable.