Why Invest in Phoenix Real Estate?
Nicknamed the Valley of the Sun, Phoenix is the capital of Arizona and its largest city, with a population of 1.7 million people. Its home to four Fortune 500 companies: Avnet, Freeport-McMoRan, Republic Services, and ON Semiconductor. Phoenix is the fifth largest city in the United States, and it was also named the 12th largest metropolitan area by World Population Review.
The city is built on a mostly flat, desert landscape, aside from the surrounding mountain ranges. For residents, it offers a booming economy, job growth opportunities, a number of higher education insitutitions, and sunshine year-round (perfect for outdoor activities). There are many master planned communities throughout the three areas of Phoenix: North, Central, and South./p>
The largest industries in Phoenix are healthcare, retail, hospitality, and construction. Each year, more than 22 million people visit Phoenix, many flying in and out of Phoenix Sky Harbor International Airport, which is dubbed America’s Friendliest Airport and is one of the nation’s top 10 busiest airports.
Phoenix Rental Market Highlights
- The median home price in Phoenix is $282,900 (lower than the national average of $231,000)
- The local economy is getting a boost as more people move to Phoenix, which welcomed 25,288 new residents between 2017–18; Phoenix was the fastest-growing city in 2018
- Phoenix consists of 15 villages with neighborhoods dispersed throughout the city
- The Phoenix metro area accounts for Phoenix and its neighboring cities of Glendale, Tempe, and Scottsdale
- Maricopa County, which includes Phoenix, has been the fastest-growing county in the nation for three consecutive years; the county added 81,244 people in 2018, an increase of 1.7% year over year
- Job growth over the next 10 years is predicted to be 48.2% (higher than the national average of 33.5%)
- The light rail connects Phoenix, Tempe, and Mesa (roughly 50,000 riders daily); expansion plans are in the works
- The US Census Bureau estimates the city population will grow to 2.2 million by 2030
- The Phoenix Biomedical Campus in Downtown is located on 28 acres, with expansion plans in the future
- Large distribution centers that supply major cities like Los Angeles and San Diego
North Phoenix Rental Market Highlights
NoPho is home to the cooler-weather neighborhoods (popular especially among families) that line the 1-17 corridor from Noterra to New River. Many of the neighborhoods in North Phoenix are rural or suburban, with the Phoenix Sonoran Desert Preserve nearby featuring numerous mountain biking, horseback, and hiking trails.
There is generally a steady demand for homes in the North Phoenix region, with a lot of open space available for development—a new project to build 170 homes on 55 private acres near Anthem was green lit. Anthem and Norterra are known for their shopping complexes (Outlets at Anthem, Shops at Norterra, Happy Valley Towne Center). Rio Vista is a top choice for many real estate investors; it is largely undeveloped land with easy access to amenities in neighboring cities like Anthem (median home value: under $300,000).
Central Phoenix Rental Market Highlights
Central Phoenix (CenPho) is home to the Downtown area, which offers a mix of art, entertainment, and culture, as well as an abundance of mixed-use commercial buildings. Explore the Phoenix Art Museum, see the Diamondbacks play at Chase field, and choose from a huge selection of cuisines, all easily accessible with the light rail or even walking. Roosevelt Row is one of Downtown’s trendiest (and pricier with median prices at $438,000) neighborhoods, most popular among the younger crowd.
Both Deer Valley to the west and Paradise Valley to the east are popular neighborhoods to live, with top school districts and many amenities. Deer Valley is ranked the #1 neighborhood in Phoenix based on its affordable cost of living ($167,000 median home prices). It also has its own small airport, horse race track, and theme park. Paradise Valley is a small, affluent town northeast of the Sky Harbor airport, near Tempe and Scottsdale. With median home value at over $1.3 million, it features luxury hotels, spas, and golf courses, while families enjoy great schools and lots of outdoor activities including hikes and horseback riding.
South Phoenix Rental Market Highlights
South Phoenix comprises Laveen, South Mountain, and Ahwatukee Foothills, among other urban villages. Although separated from Phoenix by South Mountain, Ahwatukee has easy access to other East Valley cities via the I-10. The urban village, with median home values of just under $300,000, feels more rural than other areas since it supports developments that maintain the quiet and spacious atmosphere. Schools are above average and there are many things to do in the area. Northwest of Ahwatukee is the neighborhood of Laveen, where median home value is $178,000.
For more information refer to our Knowledge Center and visit our Phoenix, AZ Property Management page for local landlord tips and information. Our team has vast knowledge and experience in local Phoenix property management and can help you to have a better investment experience.
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