Take action now if you’re planning to buy a home because prices are going up for the next couple of years in Arizona. Investments in single-family rental properties have real potential.
The strongest economic growth and therefore most robust demand for housing is in Phoenix, where jobs are growing in healthcare, retail, and the finance sector. In addition to the metropolis cities, places like Prescott cater to retirees or Flagstaff to the younger demographic. Job increase has been steady in the health care and retail sectors, mostly in Prescott and Phoenix and Flagstaff depends greatly on the cyclical tourist trade.
Phoenix costs are expected to increase at least 25 percent over the following 36 months, which means you shouldn’t wait too long. Costs have been strongest in Phoenix itself and marginally weaker in the southeast suburbs. Flagstaff, Tucson, and Phoenix have a high proportion of renters but investing in single-family properties to lease them is most plausible in Phoenix.
Homes are an excellent investment because home prices will keep climbing the next few years; yet costs are in balance with local incomes. In the Phoenix marketplace, expect about 60,000 new single-family homes built over the next three years and the same number of condos. In Prescott, expect fewer than 5,000 houses constructed. In Flagstaff expect mostly condos, with less than a thousand new homes.
Few people have the funds to buy a home like the ones in the video below, however, if you are one of the privileged few, there are several on the market in the Paradise Valley area of Phoenix.