Investing in Arizona
If you've been thinking about investing in Arizona Real Estate, now is the time to take action. Arizona is currently ranked 3rd among U.S. States for population growth, adding 100,000 new residents in 2021(1). This pushed Phoenix up the ranks landing at #3 nationally for investing in Real Estate, and #1 in the west. I would love to credit our beautiful weather, golf courses, and amazing restaurants, but that is only part of the story.
Arizona is expected to add 155,000 jobs in 2021(1). Studies report an average of 130% increase in companies moving to the Valley of the Sun. Door Dash moved into the Grand 2 building in Tempe in the Spring of 2020. Originally headquartered in Silicon Valley, Moov Technologies, an online manufacturing equipment marketplace, announced its move to Phoenix in March of 2021. Taiwan Semiconductor Manufacturing Company (TSMC), the company that supplies semiconductors for Apple, has signed an agreement to build a manufacturing facility here. That means a lot of jobs. From factory workers to executives, they'll be looking for a place to live.
Next, and I hope you're sitting down for this... the majority of millennials are in their 30s (pause for audible "already??"). Being millennials, many them are in tech related fields, which makes Arizona a great early career move. After all, Arizona has the highest employment in the U.S. for satellite telecommunications, aerospace manufacturing, and electronic component manufacturing. In one ZipRecruiter search, I found over 500 jobs for Engineers in the Aerospace field alone. They typically rent due to the increase in home prices, but are young professionals, which make them ideal tenants.
For those looking to own vacation rentals, Arizona is the perfect place. In 2017, Arizona passed a law banning restrictions on short-term, non-hotel rentals. That means great business for those wanting to post their property on sites such as Airbnb, Vrbo, and Luxury Retreats. Properties which are a reasonable distance from large events like the Barrett-Jackson car show or the Phoenix Open golf tournament are a great bet as those events drive up prices.
But don't let that be your only focus. We have many travelers who come just to golf during the winter. With more than 300 courses, many with beautiful clubhouses and restaurants, Arizona is a top destination for golfers. Add excellent shopping, hiking, and beautifully quaint towns like Jerome only a few hours away, travelers want to stay as long as they can. The Snowbirds (or winter visitors) are an Arizona staple, however, the age range has changed quite a bit. In the 80s, most snowbirds were over 65. Now, the baby boomers are taking over with people as young as fifty joining the ranks.
The tenant pool to most look out for going forward is the single, work-anywhere traveler. They can work from anywhere, so choose to be nomadic, staying a few months in each town and getting to see the whole country. Arizona will surely be on their list.
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Polly Mitchell Global Realty
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(1) U.S. Bureau of Labor Statistics & W.P. Carey School of Business.