Arizona currently has the 22nd highest rent in the country out of 56 states and territories. In Maricopa County alone, with an estimated population of 3,817,117, the average 3 bedroom home rents for $1474. In Pima County, with an estimate population of 980,263, the average 3 bedroom home rents for $1242.
There is a high demand for 2018. This is due to two factors that will greatly impact Phoenix real estate: job and population growth. Phoenix real estate will benefit from the city’s growing economy. In 2017, Phoenix real estate investing was given a boost because of the additional 51,000 jobs added during the year. As of October 2017, Phoenix had an unemployment rate of 4.5%, the lowest the city has seen since 2007.
Phoenix has gone through a 140% increase in the number of companies that moved their location to the city, meaning good things for the Phoenix housing market.
Phoenix investment properties will be affordable, compared to the national index for housing affordability. According to the Wells Fargo Housing Opportunity Index, the national index is 58.3% for a median income of $68,000. For the Phoenix real estate market, the index is 65.8%. In comparison to other states, Phoenix investment properties will be pretty affordable for real estate investors and homebuyers.
Single family homes used as rental properties are also a good option for investing in Phoenix real estate. Real estate investors should even consider turning single family rental properties into dual occupancy rental properties to get more rental income.
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