RealtyHop last month released its 2021 list of the most expensive zip codes in the nation and one of them was from Arizona.
Number 46 on the list is Arizona’s 85253 zip code in Paradise Valley. The Paradise Valley zip code had a 12.88% increase in the median listing price from 2020 to 2021. The median listing price in 2020 for 85253 jumped from $2.299 million to $2.595 million.
Arizona statewide real estate and property values performed exceptionally well. According to the S&P CoreLogic Case-Shiller Indices, Metro Phoenix was ranked tops in the nation when it came to home price growth with an outstanding 33% year-over-year gain, a full 13% higher than the national average of 19.8%.
Shane Lee, a data analyst for Realty Hop who published the study for the second year in a row, pointed out the effects Covid had on real estate growth. Because many have adopted either a completely virtual work environment or hybrid work environment, many have chosen to move to their dream cities where they will feel more comfortable spending time at home; one of the cities many people seem to have their sights set on happens to be Phoenix.
Hybrid and virtual work environments reduce the hours and expense of commuting, creating more financial stability and the ability to afford larger homes in nicer areas. As migration increases, prices in housing did as well.
Only 11 states made the list this year, with the majority of them being in California. Sixty three zip codes from California are on the list, followed by 20 in New York and five in New Jersey. The zip code that holds the number one spot is Atherton, 94027, in California with a median listing price in 2021 of $8.95 million.
California may have made the top of the list, but in the next few years this could change due to the large number of businesses choosing to leave California. Spectrum Location Solutions conducted a seven-year study that monitored where these businesses are choosing to go, with Arizona registering as the third most popular destination. The study shows that more than $68 billion in capital was diverted form California companies, with Arizona as the largest beneficiary of that divestment.
“Real estate seems to be stable, and more people are moving to the state than leaving,” said Scott Curry, president of SKC Strategies and executive vice president of business development for Pure Grips.”More businesses are moving to Arizona because of the favorable business environment and the relatively low cost of living.”
Author: Flannery Sloan, Arizona Junior Fellow