5 hottest real estate markets in Arizona

The US real estate market weathered a challenging 2020. Unprecedented events like a global pandemic and turbulent presidential elections have sparked a period of economic uncertainty. Despite these challenges, recent research shows that the Arizona real estate market is a 8.2% appreciation from early 2021 through September in property prices making it one of the hottest property markets in the country. That market forecast isn’t surprising considering that Arizona has one History of exponential growth in property value since Q1 2000.

The forecast growth is mainly catalyzed by low real estate inventories and low mortgage rates. While buyers are attracted to Low mortgage rates and low inventory levels force them to compete with desirable properties and locations, which ultimately adds to the property’s value.

Below are some of the most promising real estate markets in Arizona:

1. Phoenix

Phoenix is ​​Arizona’s most populous city and is considered one of the largest real estate markets in the US and also one of the hottest real estate markets in the US. It offers a combination of fine weather, a booming economy, night life, renowned restaurants, and shopping that continue to draw people onto the subway.

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Short-term rentals in particular are thriving thanks to the city’s tourism industry, which draws tourists each year with major events like the Phoenix Film Festival and a wide variety of golf courses. Of course, the short-term rental industry in Phoenix was hit hard by the COVID-19 pandemic. However, the industry has proven resilient with relatively fair returns as investors take security measures to contain the spread of the virus and encourage guests to feel safe.

Additionally, Phoenix’s affordability attracts the growing population of remote workers Eyes houses in the suburbs unlike crowded cities. They want affordable homes with office space and a nice, warm climate, all of which can be found in Phoenix.

2. Scottsdale

For decades, Scottsdale’s real estate market has been growing thanks to its high employment rate, good schools and the growing tourism industry. This makes it a desirable area for families and young professionals to settle in. Investing in condominiums, apartment complexes, or single family homes for traditional rental or vacation options is therefore an excellent way to maximize returns and take advantage of one of the hottest real estate markets.

In essence, the traditional rental thrives mostly because of the high price-performance ratioAccording to recent findings at 23. In light of soaring house prices, residents will therefore rent out properties instead of buying their own. Although mortgage rates are low, they won’t make up for the high cost of real estate for all buyers.

As an investor, Scottsdale’s only downside high property The price is you’ll spend more on the initial investment than other locations on this list, but you’ll likely enjoy guaranteed returns.

3. Tucson

Tucson is a family friendly city whose The cost of living is 6% lower than the national average. The “Old Pueblo” city from Tucson boasts excellent public schools and is surrounded by beautiful outdoor scenery, making it a desirable choice for families. Corona de Tucson, in particular, is the most promising real estate market in the larger city of Tucson. The city is an excellent place to invest in long-term single-family home rentals because of its proximity to schools and low crime rates. This is due to the median House value It’s quite expensive here, which leads most residents to rent. Additionally, there are a number of thriving businesses downtown, making it ideal for commercial real estate investors.

4. Tempe

If you are looking for long term Arizona real estate investments then Tempe Town is the market launch. In fact, Arizona State University is located in Tempe, along with more than 20 other colleges near the city. The great nightlife and growing number of commercial buildings in Tempe have catalyzed growth as an urban hub with demand for college rentals and commercial real estate.

Additionally, Tempe has seen the labor market grow 3.3% and is expected to grow a whopping 49.9% over the next 10 years. For referenceThe US average for the next 10 years is 33.65%. With this promising economic growth, investors can expect high demand for homes in Tempe.

5. Prescott

Prescott is a smaller city compared to other cities in Arizona. However, unlike most of the cities on this list, most of the residents are here prefer home ownershipas evidenced by the growing number of homeowners in the city. Single-family houses are the most common as most of the residents are young families with roots in this city. Prescott is also home to several colleges and universities, making it a good place to buy traditional rental and commercial properties. For beginners on a budget, the city’s relative size makes it a good place to venture into real estate low average house value.

Arizona real estate market outlook

Arizona is becoming a top destination for domestic moving due to its strong economy and stable real estate market. The warm weather and excellent restaurants also make it a popular tourist destination. Hence, building your real estate portfolio with real estate in Arizona should be part of your growth strategy. Before making any investment, however, it is best to consult with an experienced real estate agent about how to get into the market and scale your investment.

Michael Hills is Vice President of Brokerage at Atlas Real Estate.