The Arizona market as a whole is very hot and there are several cities and metro areas right now that are just asking for more real estate investors! Here are our top five picks for real estate investments in the state.
With a population of over seven million, Arizona is one of the fastest-growing states in the U.S. Its booming economy, low unemployment, warm climate, and hot tourism industry make Arizona a great place to invest.
If you’re looking to invest in property, there are several markets in Arizona where it’s hard to go wrong.
Any list of the best places to invest in properties in Arizona is bound to have Phoenix near the top. The Phoenix metro area is home to nearly five million people, a good economy, great job opportunities, and more.
Whether you’re looking for a traditional rental property or a vacation rental property, Phoenix is a good investment. Its climate, entertainment, nightlife, and restaurants make Phoenix attractive to renters and vacationers alike.
Rent and median sales price have been increasing in Phoenix year after year and experts expect Phoenix median home prices to increase by more than 25% over the next few years.
Even with recent price increases, Phoenix still remains a relatively affordable place to invest, so get your money into the market while you can.
» READ: Top Real Estate Agents in
The Scottsdale real estate market has been growing consistently for decades, and for good reason. Between Scottsdale’s high employment rate, hot tourism industry, good nightlife, and great schools, the market is expected to remain hot for the foreseeable future.
The Scottsdale market has been so hot for so long that it even managed to mostly avoid the 2008 real estate crash. According to a Mashvisor report, the Scottsdale market has risen over 102% in the last eight years.
Rents in Scottsdale are high, which is bad for renters but good for property owners. Scottsdale rental homes make money, whether single-family homes or apartment buildings. Scottsdale also attracts tourists from all over the country, making it a great market for short-term vacation rentals.
Investing in Scottsdale single-family homes, duplexes, condos, or apartment buildings to rent out, either as traditional or vacation rentals, is a great way to get a nearly guaranteed return on your investment.
The only downside to Scottsdale is the high price of property — with a median home value estimate of $421,200, you’ll need to spend significantly more in Scottsdale than in most of the other locations on this list.
Tucson is a great place to buy rental properties, especially single-family homes. High real estate prices in the Tucson area lead to a high percentage of families renting and a solid market for real estate investors.
Tucson, especially Corona de Tucson, is a top area to invest in. Corona de Tucson properties are beautiful and it’s known for its excellent public schools. Many renters are willing to pay higher prices to live in this small but growing area.
Significant growth in the downtown area, a slew of new businesses, and new construction near the Sun Link streetcar line are all contributing to Tucson's home values and growth. With all of its draws, plus a median home value estimate of just $164,800, Tucson is an affordable and growing market for real estate investors.
» READ: Top Real Estate Agents in Tucson
Not far from Tucson is Tempe, a popular college town with all sorts of amenities. Home to Arizona State University, hot nightlife, and Tempe Town Lake, Tempe — and particularly the Lakeside district — is hot and expected to keep growing for years to come.
Whether you’re looking to invest in rental property, LEED certified property, or commercial property, Tempe has something for you. Construction on a streetcar that will connect downtown, ASU, and Lakeside has already begun, and after it opens in 2021, Tempe real estate prices should continue to increase for years to come.
» READ: Top Real Estate Agents in Tempe
Prescott is a medium-sized city, a bit smaller than the rest of the cities on this list with a population of around 43,000.
Prescott is both a professional city, with over 86% of its residents working in white collar jobs. It’s also a college town, home to several colleges and universities. Because of this, Prescott is a good market to buy traditional rental properties and commercial real estate.
Prescott’s amenities and relatively low median home value estimate make it a good place to invest.
The Arizona market is very hot and expected to stay that way, so invest now while you still can!
Whether you’re a novice investor or an experienced investor looking to expand your existing portfolio, you would likely benefit from talking to a local expert. Partner with an experienced real estate agent on the ground in your Arizona market for guidance and support while you break into the market or scale your investments.