What Arizona Investors Know
Arizona is known for many things. It’s the Grand Canyon State, home to the Saguaro desert, and has a reputation for the best Mexican food in the United States. There’s also some facts many people don’t know about the 48th state, such as the statehood birthday is Valentine’s day. There’s one thing, however, that all Better Choice Homes investors know about Arizona. Our investors from across the nation and Canada all know that Arizona is one of the best places to invest in real estate. Why?
- Weather & Snowbirds
Arizona’s number one asset is the weather. Out of state buyers flock to the sun looking for winter homes or a retirement location. There’s a new influx of buyers yearly that bring a consistent market with them. Researchers estimate that 300,000 or so snowbirds arrive in Arizona each season, bringing around $600 million into the economy with them.
- Resilient Economy
We will never run out of sunshine in Arizona. Because of that, the state economy is not dependent on physical trade. Phoenix financial housing market analyst, Mike Orr, has said, “Arizona’s economy is not dependent on the commodity and raw materials business. Our copper mines are in bad financial shape with copper prices sinking due to weak demands from Asia. However, many of the biggest mines are owned by Mexican corporations these days. The oil and gas business is likely to have some difficult months, if not years ahead, but Phoenix’s housing market is not driven by the energy sector, either. A deflationary cycle will make our homes look more expensive to foreigners, but our real estate market depends very little on demand from foreign countries.” In other words, our market is in strong shape and can take everything the world economy can throw at it.
- Population Growth
A great investment market for real estate requires buyers and renters willing to spend. Arizona has the nation’s 16th largest population of almost 7 million residents. Projections from the State Department show an expected increase of 2 million people to the population in just 20 years. We rank fourth out of the 50 states in terms of population growth. More residents mean more people in need of housing.
- Home Value
According to housing market analysts, more metro Phoenix homes will be occupied by renters than ever before. Foreclosure properties are being bought overwhelmingly by investors. Other potential buyers simply haven’t materialized. There is a big swing from ownership to rental. Arizona has 5852 rental properties presently available for future tenants. Compared to May of 2015, the total value of properties under contract has increased by 50%. Housing market predictions expect to see the value of homes continue to increase at a slow and steady pace following the rapid rise from last year. The Arizona Housing Market is especially important to the state’s economy. Arizona’s population is growing at a rate of 1.4% and that number may continue to increase as employment numbers also increase, the current rise is 2.6%. Higher employment rates require more people to fill positions, those people need a place to live and drive the real estate market.
Arizona residents know it’s a great place to live but Arizona investors know it’s a great place to buy. Whether you’re looking for a short term investment fix and flip or a long term rental property with continuous income, we can help you from start to finish. We’re the Arizona property experts with the goal to help you make the most of your money.
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