Phoenix is a great market for real estate investors. With more than 1.6 million residents – 4.5 million counting its surrounding suburbs – it’s the fifth-largest city in America, and a growing hub for industry and innovation. West Coast businesses are attracted to Phoenix’s lower tax rates and large employee pool, while northern transplants tired of shoveling snow are eager to accept jobs here.
The influx of businesses has resulted in higher than normal rental rates for the Phoenix area, along with average home prices that were up 12.5% as of March 2017. Jobs are being added at double the national rate, according to a recent article for Forbes, making Phoenix their top pick for investors looking to increase their residential real estate holdings. In his assessment of Arizona real estate, finance writer Ingo Winzer predicts that the Phoenix housing market could appreciate up to 25% over the next few years.
The strong demand for single family housing has spurred developers to build new communities in desirable areas. This opens new opportunities for investors looking to purchase turnkey properties that rent well to high-level, executive families. Shea Homes, for example, is currently working to develop 11 new planned communities around the Valley. The luxury condo market has also taken off in 2016-2017, with new developments including Contour in the Biltmore district and the upcoming $40M Edison Midtown project.
Phoenix Means Business
The boom in development, combined with affordability and year-round sunshine, make Phoenix an attractive place for companies and executives looking to relocate. According to Phoenix Mayor Greg Stanton, the number of businesses in downtown’s “tech corridor” is nearly five times higher than it was five years ago.
Why is big business booming downtown? Stanton cites the increase of adaptive reuse projects, where developers remodel existing buildings to appeal to trendy, modern companies. New gourmet restaurants, loft housing and the light rail attract eager young professionals to the downtown area. North Scottsdale, the Biltmore Corridor and central Chandler near the Intel and Motorola facilities are also seeing heavy growth right now.
Managing Your Investment
With rental prices on the rise, now is a great time to become a landlord or add to your portfolio of investment properties. Once you’ve found the perfect property, you’ll need someone to help manage monthly operations so you can focus on the bigger picture.
Shield Property Management can assist with marketing your rental property, finding the right tenant and collecting rental fees. Three levels of service are available, with the highest tier including a 24/7 tenant emergency line, facilitation of repairs, move-in/out inspections, and more. Contact us today at 480-699-7206 to see how we can help you get the most out of your investment.