Investing in real estate is a popular and strategic choice. However, choosing a location can be difficult, especially if you want to get a large return on investment. Whether you’re planning to purchase a new family home, a vacation spot, or want to flip a few houses for profit, Arizona is the best place to put your money.
The 2007 housing crisis hit Arizona hard; during the housing boom, developers built thousands of housing units which ended up vacant when the bubble burst. The market—specifically in Tempe and Phoenix—suffered from evictions, foreclosures, and prolonged unemployment. The median home value dropped to as low as $100,000 (from $250,000 just before the crisis) and more than 40,000 housing units remained unsold. The market bottomed out in 2013; since then, property prices, home sales, and re-sales have slowly increased. The housing market has yet to fully recover.
However, housing and migration trends indicate that Arizona is becoming a popular destination for young professionals and families; low home prices and plentiful amenities create an optumal environment for those wanting to put down roots in already-established communities. Furthermore, those wanting to build a new home have plenty of land options; officials recently reported that Phoenix has a surplus of owned vacant land covering almost 2.5 square miles.
Arizona is predicted to experience high real estate demand in 2018. This is likely a result of job and population growth; in 2017, an additional 51,000 jobs were added to the Phoenix area alone, meaning job growth in other parts of the state may be higher. Real estate prices are predicted to slow in growth, but they will likely continue to rise over the next several years. Investment properties are relatively affordable, making this an excellent place to purchase property, start a career, or flip a home.