The capital of Arizona, Phoenix is the 6th largest City in the United States. Phoenix and the adjacent 20 municipalities comprise of the Greater Phoenix Metropolitan area, including a population of over 4.2 million people. Throughout the late 1990’s and until the mid 2000’s, Phoenix experienced explosive growth—averaging almost 100,000 new residents every year. During that time, the explosive growth, coupled with a booming local and national economy, created an unprecedented real estate boom (and ultimate bust). The median home price in Phoenix sky-rocketed 70% from the early 2000’s to a peak of $265,000 in late 2006.
The subsequent market over-correction (real estate crash), has created a once in a lifetime opportunity to invest in real estate for 2 specific reasons:
- Incredible values: The median home price in Phoenix is currently less than $120,000—a 65% reduction from the peak. Many of the homes Invest Arizona offers to its investors are at prices similar to those seen 15 to 20 years ago, and well under replacement cost.
- Rental Demand: The market correction and subsequent foreclosure crisis has created large and increasing demand from tenants. The conversion from owners to renters has been substantial, with some estimates indicating over 40% of the population has now entered the rental pool.
The long-term outlook for Phoenix remains very positive, with some experts forecasting a population increase of nearly 60% by 2030. Phoenix features a consistently strong tourism industry, the nation’s largest public university in Arizona State University, a blossoming industrial market led by burgeoning warehousing/distribution core, and a growing hi-tech sector lead by Solar power.
Phoenix, like its mythical namesake, will once again rise from the ashes.
And over 300 days of sunshine coupled with an average temperature 74 degrees isn’t too shabby either (business trips to review real estate in Phoenix always make great business write-offs!).
Contact us now to learn why the time is now and the place is Phoenix to meet and exceed your real estate investment goals.
