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The Phoenix real estate market is one of the richest on the continent. It is a great source of investment due to several reasons. One of the most important is the city’s high price-to-rent ratio. It is an indicator of the fair value of the houses for sale in Phoenix.
The population is truly impressive in Phoenix, also known as The Valley of the Sun, the population is truly impressive. This is because so many people prefer to settle down in the capital of a beautiful state – Arizona.
MLS listings in Arizona are an indicator of high demand due to the ever-growing need for housing. Currently, over 4,8 million people live in Phoenix and enjoy its relatively low living costs and pleasant sunny weather. There are plenty of activities to enrich you culturally and to spend your money on. The city has a lot to reveal, from ancient remnants to exhilarating sports events.
Population growth
The mind-blowing truth is that the Phoenix population has been growing dramatically, like in no other American city. Over the past ten years, it increased by 603,451 people in the metro area. The incredible growth rate is 15,8%. And now this city has become home to so many different people with various budgets and occupations. All of them find this place affordable and very comfortable to live in.
Overall, 1,6 million people live in Phoenix and almost 4,4 million in Phoenix-Mesa-Scottsdale metropolitan area. The population is expected to grow and will number 5,64 million people by 2029. The income for one person is $34,378, and the median household income is estimated to be 67,068.
Job market
According to the employment rates and booming business activity, Phoenix is one of the first in America. Thanks to small businesses increasing their working capacity by almost 6% each year, the city flourishes like crazy. There is expected to be even higher growth in the working sector. Until the end of the decade, it is believed to be 1,6% higher than previously.
Real estate market
As we have approached the main point of this article, it would be necessary to mention that Phoenix’s home prices indicate a steady increase. Prices go up to 29% as each year goes by. Partially, it is happening due to the need for people to move to the countryside from the urban apartments. In addition, the demand for rental property is very high, and investors are genuinely interested in doing their business. In addition, according to a recent report on Realtor.com, the median listing home price for sale is $475,000, which is quite favorable. Judging from the average family income, it is not a problem for citizens to buy a new house.
Tough renter’s market
Overall, many investors are interested in doubling their profits based on double-digit growth in rent prices. Also, they are majorly attracted by the high price-to-rent ratio that allows them to gain a considerable income. In the case of inventory, the great majority of it is taken by investors, and its scale is generally more prominent than in other metropolitan areas.
Price changes and affordability
There are two data sets used by real estate investors to check the availability of rental property for sale. The first is called HPI, which is the Home Price Index, and the second is HAI – Housing Affordability Index. HPI is used to track any alterations to the housing prices throughout the time. At the same time, HAI observes the difference between median housing cost and median household income.
According to the House Price Index from Freddie Mac, apartment prices in the metro area of the city have drastically increased by 212%. The change has taken place in the past five years.
We previously mentioned the HAI and its significance to real estate investors. The following index measures the median price of a resale house in comparison to the median household income. As a result, if an HAI of the real estate market is above 100, the houses can be bought much more easily thanks to their pleasant market price; contrariwise, if an HAI is less than 100. Regarding Phoenix’s HAI index, it is estimated to be 119. Such latest data indicate that household income makes it possible to buy new houses.
Quality of life
All the benefits mentioned above make Phoenix an extremely comfortable place to live. As for the recent rankings, it is classified as the 67th most convenient area of residence. There are a positive net migration rate thanks to the ever-developing job market and affordable real estate prices. People want to invest in Phoenix, they want to settle down there, and it all has a favorable impact on the housing market. Besides, thanks to its tranquility, it is one of the popular residential areas for retirees and middle-aged people. Last but not least, the warm, tender sunshine adds to the great list of the city’s advantages.
To summarize, the city of Phoenix is an excellent investment. Ever-growing population and robust job market take their part in the city’s growth. Perfect location, as well as high household income, ensures calm life for older people. Good family income delivers many real opportunities to buy a new apartment and settle down in the great capital of Arizona. If you have not invested in this profitable source, perhaps it is just the right time to strike a deal.
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