The real estate market in the US was challenging in 2020. We witnessed unexpected events such as the global pandemic and the stormy presidential election. These things brought about a period in which we weren’t sure what would happen with economics. However, things are looking different this year. Researches show that we’ll see an 8% appreciation in house prices throughout the year in the Grand Canyon State alone. This makes it one of the hottest markets in the whole country. So, today we’ll talk about the best Arizona real estate markets in 2021.
The state is known for good investment opportunities since the year 2000. The market is booming, so it doesn’t come as a surprise that Phoenix is No. 1 in the nation for growth in home values and rent. However, because of the low inventory and low mortgage rates, it is growing even faster.
Here are the cities you should look into if you’re planning to invest in Arizona real estate.
Phoenix
Phoenix has a lot to brag about. Not only that it’s the most populous city in the state, but it’s also considered one of the biggest housing markets in the US. According to some experts, the city is home to the hottest real estate market in the country.
And there are many reasons why this is the case. It offers a combination of assets people love. As residents love to say, it’s a city that has everything an average homebuyer could want. We wanted to learn what these things are. So, we collected a list of things that draw people to its’ metro area. This is what we came up with:
- Beautiful weather
- Good economy
- Interesting nightlife
- Lots of fancy restaurants
- Shopping opportunities
Phoenix is one of the best Arizona real estate markets in 2021 because it allows its’ residents to live whichever lifestyle they want. Alt tag: Man working out in his backyard.
There is, however, part of the market that is thriving the most. And these are the short-term rentals. The city’s tourism industry is the reason why this is happening. More and more people visit Phoenix each year because of major events like Phoenix Film Festival. And a vast collection of golf courses only helps. Although this section of the market was hit hard by the pandemic, they’re recovering pretty well.
And on top of that, a whole new population of remote workers is interested in the city suburbs. They’re looking for places that offer affordable homes with office spaces and a warm climate. And since Arizona is one of the best examples of their requirements, one of the cities many people want to live in is Phoenix.
Scottsdale
Scottsdale is a city popular because of its high employment rate, excellent schools, and growing tourism industry. Both families and young professionals love to call this place home. So, if you want to maximize returns and capitalize on the market, invest in condos or apartment complexes. With that being said, even working with single-family homes can get you a nice profit here.
It’s important to understand that you can earn the most by investing in rental properties. Traditional rentals are thriving because of the high price-to-rent ratio. And since home prices are on the rise, residents tend to choose to rent rather than buy their own properties. And while the mortgage rates are low, that won’t bring property prices down.
If you’re planning to invest in Scottsdale, the only downside would be that you need to spend more on the initial investment compared to the other cities on the list. The price may still be affordable as opposed to big cities around the country. But what makes it one of the best Arizona real estate markets in 2021 is that you can be sure that you’ll enjoy guaranteed returns.
Investing in Scottsdale real estate means that you’ll have to spend more money, but the return is guaranteed. Alt tag: Man researching best Arizona real estate markets in 2021.
Tucson
The cost of living in this family-friendly city is 6% lower than the national average. Public schools are excellent, and the scenery that surrounds the town is described as charming. Add to that low crime rate, and you can understand what living here is like. All of these things make Tucson one of the most desirable choices for families.
However, similar to Scottsdale, the median home price here is pretty high. Therefore, most people choose to rent their homes. And these are usually single-family units. So, that’s what you should look into if you’re considering where to invest.
Additionally, the downtown area boasts successful businesses. And if experts are to be trusted, Tucson commercial real estate opportunities look bright. It might just be one of the best places in the state for making such a purchase.
Tempe
Tempe town is a go-to market for anyone looking for long-term property investment. This is essentially a college town. Arizona State University is located in it, but there are also more than 20 other colleges nearby. With students comes excellent nightlife. And the rising number of commercial buildings here is turning this town into an urban center.
If you decide to dig even further into statistics, you’ll realize that Tempe’s job market has increased by 3.3 percent. However, that’s not what’s impressive. The thing is that the expectations are that it will grow by 50% over the next ten years. Compare it to the US average, which is 33%, and you’ll understand why this is a promising place.
In the future, there will be a lot of demand for both houses and apartments in Tempe. Therefore, this small town is not something that you should forget.
Tempe is a place that will be very desirable in the future. Alt tag: Three people enjoying Tempe skyline.
Prescott
Prescott is different from all the others on our list for a couple of reasons. Firstly, it’s smaller than all the rest. And secondly, most residents here prefer homeownership.
Now, if your idea is to build a property and sell it later on, this is a place for you. At the end of last year, there was an announcement that Yavapai County would provide free affordable home plans. So, you can save money very easily.
Most of the residents here are young families that are just setting their roots in this town. However, the town is also home to a few colleges and universities. This makes it great for buying traditional rental and commercial properties as well. Because of the number of opportunities, Prescott has to be one of the best Arizona real estate markets in 2021.
Meta: Get to know everything about the best Arizona real estate markets in 2021. What are these places, and why are they so good to invest in.