For the last couple of years, all eyes have been on the Arizona real estate market. It’s been hot, no doubt – and we aren’t just talking about that Phoenix sun. The market is booming, and everyone knows it. But will it keep up the momentum? Are things slowing down? What will happen as we continue moving through 2022?
Suppose you are an investor who is considering dabbling in the housing market of Arizona to enhance your rental property portfolio. In that case, you may want to consider the predictions for the future – and discover where you may want to focus your attention. Ready? Let’s go.
The Real Estate Market Outlook
For the last two years, Phoenix has been the go-to spot. Properties have been booming more than ever before – and if there was a list to be on about being a thriving market, this city was on it. Surprisingly, though, it has been the only Arizona city to make the cut. But, when it comes down to it – list or no list – the entire state has shown it is a housing market to watch for this year.
For instance, more people would rather rent than buy in Arizona, with a 30% rent ratio. This is good news for investors who want to get in on the action. However, it is essential to consider the rising cost of home sales – with Phoenix having a median home price of $642,000. However, those who find the right property may find it a very worthwhile investment.
Arizona’s Market Predictions and Trends
Moving deeper into 2022, a lot of people have an opinion about Arizona’s housing market, and investors are watching closely. Below you will find some trends that investors should be paying attention to.
Phoenix Is in the Driver’s Seat
It is in the top 5 largest cities as its population continues to explode. This has multiplied since the COVID-19 pandemic hit, driving the home prices up. And many predict that the rate may slow down just a bit, but the home prices will continue to increase throughout the year.
The good news is that it is a mixed bag for housing types. Approximately 36% of Phoenix residents live in rental properties. And the property types are all well-sought, from townhomes, condos, and duplexes, to large single-family homes. In other words, there is something for every investor.
A Seller’s Market
While house sales were booming through the pandemic and driving up the sale price, it was a seller’s market. But is it still? As last year came to a close, the rate of homes selling over their listing price was starting to decline. And many homeowners were selling below the listing price. So, is it still a seller’s market?
Many believe so. And this is because the demand is greater than the supply. There are so many more people looking to acquire property these days – from baby boomers to millennials – that, when coupled with the labor shortage and the high cost of raw materials, the supply of homes isn’t there.
Now Is the Time to Buy
According to experts, now is the time to buy property in Arizona – especially Phoenix. But why? If the housing market is so bustling, why invest in the market rather than turn to another favorable market? Well, there are many things to consider.
Reasons to Invest in Arizona Rental Property
Each investor will need to determine their best strategy for searching for and acquiring rental property. What may work for one investor may not work for another. However, if you are looking for a healthy, thriving market to dabble in, this sunny Grand Canyon state may just be it. Here’s why.
The Job Market Has a Sunny Outlook
For starters, the unemployment rate in Arizona is down, and that is always a good sign. Major brands and companies are taking notice of the area and moving their headquarters or offices to the site. In recent years, this has included Tesla, Oracle, Hewlett-Packard, Doordash, Exro, and Viavi Solutions, Inc., among others. This is usually always a good sign for investors.
A Life of Quality
The warm climate. The many days of sunshine. Short winters. A strong economy. A leader in innovation. Good health insurance for access to benefits for those who need it. And so much more can enhance the quality of life for those living in Arizona. It is a beautiful area with many things to do – especially outdoors. Work, live, and play here is enticing for home buyers, investors, and renters alike.
A Solid Rental Market
People want to live in Arizona, but not everyone can afford the high prices of the homes just yet. And, due to the shortage, there are many who are choosing to hold out until more homes become available so they can get what they want. In the meantime, they will rent. So that means investing in rental property can be a smart move throughout 2022 as plenty of renters are available.
Where to Invest in Rentals?
Now that you know the market will be strong for rentals in 2022, are you considering investing? Should you stick to Phoenix? Or should you branch out into other cities? According to experts, there are a few cities you may want to look into:
- Buckeye, AZ
- Maricopa, AZ
- Peoria, AZ
- Tempe, AZ
- Goodyear, AZ
The Arizona real estate market is sizzling today just like it was yesterday – and these predictions show tomorrow will be quite the same. If you are an investor looking to bulk up your portfolio and find some new investment spots for rentals, don’t take your eyes off of Arizona – or Phoenix.
Plus, you’ve got nothing to worry about when you’ve got a highly experienced property management team like that at RPM Evolve. Find your rental and let the experts take care of it while looking for the next big investment deal. What are you waiting for? Don’t miss out!