2019 Arizona Real Estate Market Update and predictions

March 23, 2019 at 12:56 pm Leave a comment

I attended a class on real estate recently and listened to Bill Grey, ASU professor on real estate and very well informed on past and current issues.  He mentioned many interesting views about varied subjects that affects the future of Arizona which I will share with you.  Many of which we take for granted.

  • Arizona private land ownership is rare: 43% of AZ land is owned by the Federal Government, 26% is owned by Indian reservation, 12% is owned by State of AZ Trust to build schools. So, only 19% is owned by private citizens like us.
  • Arizona home ownership: Sixty five percent can afford to own a home. This is a drop from 75 percent from years ago because mortgage loans are tougher to get.
  • Arizona home sales: Looking bright. Many people are moving to AZ from California, Utah, Colorado, Washington because of low cost of living, jobs, weather and quality of life.
  • Rental Market in Arizona: Booming and rent is increasing. A legislation to cap rental increase would help.
  • Arizona median Age: 35.5 years old
  • Arizona unemployment rate: 4.3 percent
  • Arizona median income: $56,000
  • US median home income: $60,000
  • US median home prices – $250,000
  • AZ population: 1.7 million , growth rate is 1 million  per 10 years
  • AZ largest employer: Banner Health Care
  • Retail market prediction: Malls without experience will close and convert to medical offices, restaurants. Dollar store, 99 cent store, Goodwill are gaining demand. Middle American stores like Macy’s, Penny’s are struggling. Luxury stores are doing well.
  • Industrial Market: Many distribution hubs are staying or moving to AZ because it is cheaper – Dicks, Ace etc…
  • Entertainment centers are gaining success. Customers are looking for fun experience such as top golf.  Golf courses are on a decline.
  • Challenges facing Arizona: Lack of water, huge national debt, available land, education.

 

*Information and figures provided were based on March 18, 2019 and are subject to change.

Entry filed under: Arizona Real Estate, Phoenix Real Estate. Tags: , .

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