Why Buying Property in Arizona Just Makes Sense in 2021
Arizona has been a boon for those looking to invest in property for over 20 years. The state has already seen median prices for single-family homes rise 30% year-over-year in some areas. A report from the research team at Zillow is forecasting another 13% increase between September 2021 and September 2022.
Given how well the state as a whole has been doing with regards to the housing market, which areas are the best options for your initial investment?
Phoenix Is Still Number One
Phoenix has been the highest-ranking city for housing and rental property growth in the US for quite some time now. It has all of the amenities of any other big city you’ll find throughout the country while boasting lower housing costs.
Homeowners can find fantastic homes in the metro or surrounding suburbs, but those looking to purchase an investment property will see the most benefit out of buying in Phoenix. The city is a tourism hot spot and as restrictions on events end, everyone will be more than ready to get back on the road and start traveling again.
Scottsdale Maximizes Returns
A great job market, prestigious schools and an ever-expanding list of reasons to visit have made Scottsdale one of the most profitable cities to invest in rental property. Students are looking for high-quality apartments to live away from campus and remote workers are flocking to the city to take advantage of the beautiful climate and views.
One thing to note about Scottsdale is that the initial investment will be higher compared to the rest of the cities mentioned here. If you’re able to make that bigger first leap, you’ll also see much larger returns as renting becomes the preferred option for many Scottsdale residents.
Tucson Provides Low Cost of Living
Families are loving Tucson more and more each year. The cost of living is 6% below the national average while still maintaining stellar public schools and low crime rates. While investment properties can still thrive here, single-family homes may be a better vehicle for your portfolio.
Commercial success is also fueling the job market in Tucson as downtown businesses seek more professionals for their teams to accommodate expansions. More workers also means more renters for your property.
Prescott Is for Homeowners
Being smaller than its big city counterparts, Prescott lends itself more to families versus individuals. That isn’t to say there aren’t opportunities to purchase condos or apartments to rent out. Prescott is home to multiple college-level schools so there will always be tenants out there looking for a space to rent.
If you’re looking to purchase a home for yourself, Prescott is more affordable while still having access to some of the best scenery in the country. If you’re on the investment side instead and want to break away from simply buying then renting out properties, this is the place. New construction is very affordable in the area meaning you can build and sell to add another source of income to your revenue stream.
Ready to find your dream home or investment property in Arizona? Give the Potempa Team at Fairway Mortgage a call to speak directly with one of our mortgage experts to get started.