Arizona’s housing market could expect a spike in growth next year, according to Trulia. The real estate listing company ranked Phoenix the seventh highest US housing market expected to grow in 2019.
The study analyzed the 100 largest US metropolitan areas based on five factors: job growth, vacancy rates, starter-home affordability, inbound searches on Trulia, and the proportion of residents under the age of 35. According to the study, Phoenix ranked in the top 20 for vacancy rate, meaning housing supply exceeds demand.
Arizona REALTORS president Patrick Lewis highlights the economy as the major factor for the city’s housing growth. “There is a very strong economy in Arizona right now,” he explains. “We are among the top ten in the country for job creation, and that job growth is one of the main reasons we’ll continue to see growth in the housing market.”
According to the BMO Capital Markets Economics State Monitor, the state’s economy experienced a 4.2 percent year-over-year economic increase in the first quarter of this year – its fastest growth rate since 2007. In fact, of the 20 industries that make up 98 percent of the state’s economy, 19 of them progressed economically. Consequently, this economic success will fuel the housing market in 2019.
Lewis also notes that Phoenix has many additional factors that make it a great place to buy a home. “A few main factors that make Phoenix a great place to buy a home include the economy, climate, and affordability compared to big neighbor markets like Denver, San Diego, San Francisco and Seattle,” he continues. “We’re seeing a lot of influx form those places because comparatively, we’re affordable. Overall, Phoenix is a great place to live.”
This past year, the housing market burgeoned as well. According to a study by apartment search website RentCafe, developers built over 10,000 apartments this year, which represented a 55 percent year-over-year increase.
Further, Lewis adds that this trend will likely continue, but single-family home growth will also skyrocket. He states, “Because of affordability, we can expect continued growth in the townhome and condo market with some growth in the single-family home sector.” University of Arizona Economic and Business Research Center Director George Hammond found that Phoenix’s single-family homes have a 65.7 percent affordability rate, compared to the national average of 59.3 percent.
Arizona is a great place to be for home-buyers in 2019. With a booming economy and low affordability, the state offers housing deals for citizens of all ages.