Phoenix Arizona suburban housing development neighborhood
Phoenix Real Estate Investing
by Aaron Norris, Property Radar
A rizona is best known for its hot weather and, increas- ingly, its hot real estate market. Its business-friendly policies, reasonable real estate prices, and diversified economy have attracted over 2.2 million new residents from other states since 2010. The Phoenix-Mesa-Chandler metropolitan statistical area (MSA) is the 10th largest by population. The 2019 Census pop - ulation estimates show the region gained almost 750,000 new residents in the last nine years (17.7 percent growth). It has the third-largest increase in population outside of Dallas-Fort Worth MSA (1.2 million added, 18.5 percent growth) and Houston MSA (1.1 million added, 18.8 percent), respectively. Here are the top three MSAs by population in the US and their change over that same period:
1.5 percent growth) • Los Angeles-Long Beach-Anaheim, CA (376,000 added, 2.9 percent growth) • Chicago-Naperville-Elgin, IL-IN-WI (-12,000 lost, -0.1 percent growth) Looking at year-over-year trends, however, all three MSAs have been losing residents for the past two years. Chicago has been losing population annually since 2015. The three MSAs encompass some of the most incredible cities in the world. Yet, even pre-Covid, residents were voting with their feet. Phoenix, on the other hand, has positioned itself as the fifth most populous city in the U.S. with the strongest growth over the past decade.
• New York-Newark-Jersey City, NY-NJ-PA (293,000 added,
TOP 5 MOST POPULATED CITY COMPARISON
NEW YORK LOS ANGELES
CHICAGO
HOUSTON
PHOENIX
Population
8.3 m 4.0 m 2.7 m
2.3 m 1.7 m 10.7% 16.2%
Population Change
2.0%
4.9%
-0.1%
Median Household Income (2018 $)
$60,762 $2,665 $570,500
$58,385 $2,629 $599,700
$55,198 $1,929 $246,500
$51,140 $1,598 $161,300
$54,765 $1,417 $217,400
Median selected monthly owner costs -with a mortgage, 2014-2018 Median value of owner-occupied housing units, 2014-2018
$1,396
$1,376
$1,077
$990 3.9% 9.4%
$999 3.8%
Median gross rent, 2014-2018
3.7%
4.6%
3.6%
Unemployment 2/2020 Unemployment 7/2020
16.4% 18.2% 12.0% 32.7% 36.8% 45.0%
10.3%
42.9% 53.8%
Owner-Occupied Housing Rate
Source: Population and housing data via the US Census Bureau. Unemployment data based on MSA data via the Bureau of Labor Statics.
Comparing median monthly owner costs (mortgage, taxes, insurance, utilities, and fuel) in the top five cities, Phoenix is a clear standout at $1,417. The area’s median income easily supports the median home price in Phoenix. It offers proximity to urban amenities but with a suburban lifestyle that appears, at least at this moment in history, one that will be hot for years to come.
INVESTOR REV I EW : : 11
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