Arizona is , without a doubt, is one of the biggest and most popular states in the country. The capital city, Phoenix, presents a number of appealing factors which help to make it one of the great cities to live and invest in. In fact, it offers something for everyone. The state of Arizona has modern recreational entertainment, dining and shopping facilities, great weather and interesting cultural attractions.
In recent years, the real estate market in Arizona has continued to grow and thrive. In addition to other pull factors, this area of the US offers buyers a wide array of properties to choose from, including patio homes, condominiums, twin homes, townhomes and family residences. Here, learn more about the top five factors that are helping to drive the Arizona real estate market forward.
1. Economic Growth
The economy in the state has kept gaining momentum in the past few years, which has had a direct impact on the real estate market as a whole. There has been quite a bit of growth in the existing industries, along with more startup businesses moving into the area. A number of new companies have also opened new branches, offices or even transferred their headquarters to the state, due to the friendly business environment.
The result has been an increase in job opportunities, improved standards of living, higher income and falling levels of unemployment. For example, Phoenix has several employment opportunities available in the healthcare, finance and retail sectors. This growing economic growth in the state has helped attract more people to move to the area, resulting in an increase in the demand for residential and commercial properties. Experts have estimated that Arizona is going to have sustained economic growth throughout 2018.
2. Changing Demographics
In the previous years, the population in Arizona has grown and changed significantly. Other demographics in the state have also changed, including migration patterns, economic status, age and education level. The increase in the population in the state has helped to stimulate the demand for more housing units. A large number of people have employment, which means they are able to buy or lease properties. Age has also helped to diversify the real estate market as millennials, baby boomers and Generation X will keep the industry healthy.
This growth in population has helped to increase the demand for other services and goods, too. As a result, there’s a greater need for all types of properties, including office spaces, restaurants, hospitals and apartments. With a growing number of people, investors are finding this a promising area to inject more money into the real estate market.
3. Appealing Interest Rates
The interest rates on property loans play a huge role in the overall real estate market. This is because most people prefer to have a mortgage payment plan. A low interest rate means a lower mortgage payment and a higher demand for real estate in the area.
The mortgage interest rates in Arizona are low, which makes it appealing for people to buy, rather than rent. Also, buyers can expect to see under four percent interest on various fixed loans. Hard money lenders have also helped to boost the Phoenix real estate market. These private lenders have made it simple to get fast hard money loans.
4. Competitive Pricing and Affordability
While Arizona is listed as being one of the top five metro regions in the U.S., the property prices are still affordable. In fact, the average cost of a home in Phoenix is around $255,000. As a result, many people find it more affordable to live in this state. In addition to the property prices, Arizona cost of living is lower compared to other larger states. This means that you will spend less on education, transportation, healthcare, gas, and food. The friendly living environment has helped to boost the real estate industry in this area.
There are varying climates in the state of Arizona that range from warmer weather in Tucson and Phoenix to cooler temperatures in Flagstaff and Prescott. As a result, it’s a suitable location for many lifestyles. The region is home to some of the very best golf courses, local events and hiking trails in the United States. While the social amenities are amazing, the state of Arizona is also much safer than other parts of the country.
When it comes to where you want to live, work and play, there’s no question that Arizona should be on your list. In addition to having a booming economy, you can easily invest in real estate here. This state has grown in recent years, and if the experts say buy, then you should listen. If you want to take advantage of the amazing opportunities in Arizona and become a real estate investor, now is the time to make a move.