Phoenix Housing Marketing is NOT slowing down!
If any of you have been following national housing trends, you likely have heard whisperings of the slowdown of the U.S. housing market. While this might be true in some areas of the country, the Phoenix housing market is predicted to be much stronger than the national level. There are two main r
easons why—construction caution and job growth.
Valley homebuilders are cautious in their building. This partially has to do with the shortage of construction labors, but also they are more moderate in their building than in the past. In 2018, only 24,000 building permits were pulled as compared to the 60,000 permits pulled in 2005. The Phoenix metro-area is not overbuilding, which historically has created market issues in the past, but instead it has created a steady growth in the housing market.
Additionally, the job market is continually expanding, and more people are moving to the Valley. And it might not all be because of job opportunities—the inflated housing market in neighboring California has created enough reason for people to move to Arizona. Overall, Arizona’s population has significantly increased in the last few of years. According to last year’s Census Bureau, Maricopa County was the fastest growing county in the nation. With a steady increase in population, the demand for housing will continue to grow and create a healthy and stable housing market.
Personally, we have seen the steady growth of the market as I have focused on West Valley housing market. The market continues to improve and is in a much healthier place compared to its “dark days” in the Great Recession. The West Valley in particular has an incredibly strong market and room to expand and grow. In a recent study conducted by Open Door, their top 10 popular areas to buy in the Phoenix metro area were mostly in the West Valley (Peoria, Glendale, Sun City, Surprise, Buckeye, etc.)
So, don’t worry if you continue to hear about this national housing market “slowdown” because Phoenix is doing just fine. With rentals rates at an all-time high and vacancy rates still low, it creates a great investment. If you are interested in further pursing investment opportunities in the West Valley area, feel free to contact our office!