For those who are thinking of owning a house in Phoenix, Flagstaff, or Prescott someday, they are advised to make up their minds right away as prices for home are expected to increase in the coming years. People should consider investing in single-family rental apartments, especially in Phoenix, where apartment developments bear great potential. Moreover, splitting homes into rental units also seems to be a current trend in the area. Meanwhile, mortgages and construction are at an average risk, and optimum results for investments are expected for retails in Phoenix, especially in the suburbs. On the other hand, people should think twice before they make any investment in Tucson and Prescott.
Previously, investment in Arizona has the notion of engaging in dubious retirement projects in a place that looks like the desert version of Florida. Well, at present, things have changed a little. Phoenix and Tucson have progressed and now can offer something of value to potential investors. Prescott is now also popular among retirees, whereas Flagstaff focuses on attracting the younger generation. Meanwhile, a large portion of Yuma comprises immigrants. Thus, these places have different housing needs.
Given its strong economic growth, the demand for housing is the greatest in Phoenix, wherein creation of job opportunities is twice that of the national rate. These jobs include those that are related to healthcare, retail, and finance sector. Meanwhile, in Prescott, things are also going well with regard to job growth. Most of these jobs revolve around retail and healthcare sectors, which basically relate to the presence of the retiree population. On the other hand, the future is bleak for Tucson, as the growth in the place has been quite slow. For Flagstaff, any growth on the economy should depend on the cyclical tourist trade.
Given the sharp boom and bust trend, home prices in Arizona markets also had their ups and downs. Meanwhile, in Phoenix and Prescott, after going through a mini-boom of speculation in terms of foreclosed properties, the prices have gone up for Phoenix, Prescott, and Flagstaff, whereas a weaker growth has been observed in Tucson and Yuma. In the next three years, the prices in Phoenix can go as high as 25% more. Thus, people should buy their properties there now. Accordingly, prices in Phoenix have become steadier, and weakest points were only observed in the southeast suburbs.
A larger of number of renters comprise the about 40% of the population in Flagstaff, Tucson, and Phoenix. However, home prices in Flagstaff and Tucson are comparatively higher than rental places. Thus, people should just consider investing in single-family properties Phoenix and have the house rented out. The ratio for Phoenix is more favorable, and the need for housing motivates home-owners to split their single-family homes into multiple rental units. Meanwhile, in the near future, renting industry is expected to expand given the relatively lower pay in growing retail and healthcare sectors.