Arizona has long been one of the most popular retirement destinations, full of beautifully warm weather, long-running years of the Grand Canyon, and golfing communities. No other state sees more snowbirds.
But Arizona wasn’t immune to the 2000 crash, and housing values have been slow to recover. Now, 2022 has passed and gone, and realtors need clarification about what the Arizona real estate market will look like in 2023. What can you anticipate in the upcoming real estate market in Arizona?
We’ll tell you what we know and what tips and information will enable you to make the most of your real estate deals in the years to come.
9 Predictions About the Arizona Real Estate Market in 2023
In 2023, the Arizona real estate market is expected to climb and stay consistent compared to past years. If these predictions convince you, contact Thomas Osterman real estate agent, to get started!
1. Low Cost of Living
Even with increasing interest rates and other economic pressures, people are still moving to live in Arizona. The cost of living is significantly lower than in other states, which becomes an attractive option for people looking to buy or rent an Arizona property. Because of this, Arizona can expect real estate prices to hold firm but be overshadowed by the low cost of living.
2. Demand Is Expected to Outpace Supply
Over the next four years, there will likely be more people who want to buy real estate in Arizona than there are homes for sale. High population growth and a more diverse economy will make more people want to live in and run businesses out of housing and commercial spaces.
Still, current planning and zoning laws will likely need more new supplies. Because of this, Arizona housing prices are expected to stay high, giving homeowners and investors a good return on their money.
3. Increasing Population of Retirees and Families
With significant growth spurred by the increasing population of retirees and families looking for housing, the Arizona housing market in 2023 is likely to be vibrant. Aging baby boomers from all over the US will begin to choose Arizona to retire or purchase vacation homes, causing a rise in demand for homes in the area.
Recently, Arizona was also noted as one of the best states for millennials to buy a home due to the relatively low unemployment rate and reasonable housing prices. This influx of younger families transitioning into homeownership will continue to increase demand and prices.
4. The Rental Market Is a Boon for Investors
Investors can make money in Arizona’s real estate market over the next ten years by putting their money into the rental market. Even though many people have moved to Arizona, the rate at which new units are rented out has kept up with the supply, keeping rent pretty stable.
This could be an excellent time for investors to buy an Arizona house to rent out. Over the next few years, the long-term rental market is expected to offer stable returns, making it a great investment option that you should look into.
5. New Communities Are Built
New developments and communities will help the real estate market in Arizona grow at rates that have never been seen before. Since the number of people is expected to keep growing until 2023, the demand for housing will also keep going up.
Many new communities will be built during this time, giving people a wide range of housing options. People who want a home can expect it to be affordable, come in different sizes and styles, and have easy access to things like parks, shops, and restaurants.
6. Pro Investor Policies
The Arizona real estate market will still be strong in 2023 because policies that help investors were implemented at the beginning of the decade. The state has a good system for investors, such as a low cost of living, low taxes, and a government that encourages people to invest in real estate.
Also, changes to zoning laws that make them more investor-friendly, like by-right units, duplexes, and triplexes, will help make the housing market more dense and active. Because the state has policies that benefit investors, the number of active real estate investors in the state will continue to grow in 2023.
7. Home Prices Are Projected to Rise an Additional Five to Seven Percent
Home prices are expected to rise an additional five to seven percent, with some local markets experiencing even higher increases. This steady price growth indicates a healthy real estate market and suggests signs of stability. Moreover, an increase in population growth and the revitalization of downtown Phoenix will continue to fuel the housing market.
8. More Housing Options
Arizona will have more housing options than there were before. This is because technological advances in the past few years have brought a lot of new businesses to the area.
Because of this, cities and towns will probably keep building new, sustainable housing options in all price ranges to meet the needs of their citizens. There may be more condos, apartments, and single-family homes to rent.
9. Health and Job Growth Are Projected to Remain Strong in the State
By 2023, the Arizona real estate market will have experienced positive growth due to health and job growth projected to remain strong in the state. The housing market is anticipated to follow suit, with a rise in single-family Arizona home and condominium sales.
While some areas of Arizona are likely to remain more expensive than others, the increasing number of jobs and housing opportunities available to residents of all financial backgrounds will ensure potential buyers have options to choose from.
Invest in Real Estate in Arizona Today!
The Arizona real estate market is on the rise and is poised to continue increasing over the next few years. Between population growth, interest from out-of-state buyers, and innovative real estate technologies like homebuyer apps, it is an excellent time for those looking to purchase Arizona real estate.
To learn more about the market, contact your local real estate agent. What are you waiting for? Take advantage of this market opportunity now!
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