A look at the stats and trends for the Phoenix real estate market
Phoenix continues to see more businesses moving into the area, including restaurants and industrial and sports facilities. At the same time, it stands out for wellness and is one of the hottest US housing markets. Here is a summary of the latest news and trends in the Phoenix industrial development and rental and housing market.
Phoenix Arizona Housing Market Trends
According to Marco Santarelli of Norada Real Estate Investments, the Case-Schiller house price index (measures repeat sales) was up 31.3% over the year in April for Phoenix. This is above 20.4%, the national average increase.
Zillow’s home index value shows that typical property values in Phoenix-Mesa-Scottsdale Metro went up by 29.3% from May 2021 to May 2022.
Zillow’s economists and real estate experts expect Phoenix to be among the nation’s top ten hottest markets for 2022. The home values are predicted to appreciate faster than the rest of the US. Phoenix is number 8 on the list, while Tampa is #1.
Redfin reports that the Phoenix housing market is competitive. For May 2022, home prices in Phoenix went up by 24.5% compared to 2021, selling for the median price of $470,000.
Phoenix’s real estate market is top performing both in the Arizona real estate market and nationwide. Neigborhoodscout.com, a national real estate data provider, reports that Phoenix’s most common housing units are three- and four-bedroom single-family detached.
Phoenix is at number among the best US housing markets
AZ Big Media shares details of a House Method study that ranked the hottest and some of the cooler US housing markets. From this study, Phoenix came in at number 2 among the most desirable housing markets.
Some reasons for the explosion in the housing market include high demand accompanied by low inventory, fluctuating mortgage rents, and remote working opportunities.
According to the House Method study, since 2021, home prices have increased by an average of 21%. Plus, the top ten markets have listings sitting on the market over 15 days, i.e., 40% less than the national average. It was also found that many of the hottest housing markets are some of the least affordable as demand increases and inventory decreases.
Plus, home prices are expected to go up another 14.9% before next year, even amidst high mortgage rate increases.
Tampa-St. Petersburg-Clearwater, Florida, is at the top of the list, followed by Phoenix-Mesa-Scottsdale, Arizona, in second place. Austin-Round Rock, Texas is in third, and Seattle-Tacoma-Bellevue, Washington, and San Jose-Sunnyvale-Santa Clara, California, in fourth and fifth place, respectively.
2022 Stats and trends in the Phoenix real estate market
According to Jeff Rohde of Roofstock, real estate investors are buying more homes in Phoenix than in any other of the top 30 markets across the nation. This results from the double-digit rent growth and high price-to-rent ratio in the metro area.
Over 1.6 million residents reside in Phoenix, and 4.4 million live in the Phoenix-Mesa-Scottsdale metro area. The per capita income for the Phoenix metro area is $34,378, and the median household income is $67,068.Findings by the Federal Reserve Bank of St.Louis show that Phoenix-Mesa-Scottsdale MSA’s GDP is more than $281 billion.
The job sectors that are showing the most signs of growth include professional and business services, leisure and hospitality, trade and transportation, and education and health services.
Phoenix is in the lead in the US for home prices, with prices being up 29.3% year-over-year. The increased demand for Phoenix homes may be because buyers are moving from urban apartments to suburban homes. Plus, there is a strong demand from investors for rental property.
Virgin Galactic spaceship manufacturing facility is coming to Mesa
Ron Davis of the Phoenix Business Journal says a final assembly manufacturing facility for Virgin Galactic’s next-generation spaceships will be coming to Mesa.
The global aerospace company announced Thursday that a long-term lease was signed near the Phoenix-Mesa Gateway Airport.
The facility, which will be located at 5559 S. Sossaman Road, will be able to manufacture six spaceships yearly. It will bring about “well into the hundreds” of manufacturing and engineering employees.
The company will produce its Delta-class spaceship at the facility. Their target is to reach space in 2025 through revenue-generating payload and private astronaut flights in 2026.
The facility is under construction. They expect to be fully operational by late 2023.
Millennials are deciding not to enter the housing market, causing the growth of the multifamily market
Drew Ricciardi of AZ Big Media says that for first-time home buyers in high-population areas in the Sun Belt region, such as Phoenix, it isn’t easy to purchase a home due to rising home prices and interest rates continuing to grow.
A recent study by Redfin shows that homebuyers in the Sun Belt require 40% more income than what was needed last year, while 34% more income is required across the nation.
Buyers in Phoenix must earn $87,026 to afford the monthly mortgage payment of $2,176, up from 45.7% a year earlier. The median household income is $67,068 in Phoenix, with a rental rate of $1,667.This has caused many renters to continue renting because becoming a first-time buyer is demanding.
The millennial homeownership rate is reportedly at 48.6%, which is 20% lower than Gen X and 30% less than Boomers. It was revealed that 22% of millennial renters would never own a home.
ARIZONA IS NUMBER 2 FOR WELLNESS
According to AZ Big Media, Life Extension recently released a study on the best and worst states for wellness for 2022. The data was gathered from National Parks Service, CDC, Google Trends, and the Census Bureau. The three main categories included access to parks and nature, physical and mental health, and integrative health practices.
The study reveals that the wellness industry will reach $7 trillion in value by 2025. The study also ranked the worst and best states in the category. California is number 1, and Alabama is the worst. Arizona was ranked number 2 among the best states for wellness
More people across the US are interested in practices such as healthy eating, exercise, nature, self-care, dietary supplements, and mindfulness. However, some states are better wellness destinations than others.
The factors that are causing rent to rise in some areas of the US
Connor Penegar of the Phoenix Business Journals reports on the analysis done on second-quarter apartment rent data from RealPage Market Analytics. It was found that average rents are up 17% compared to last year and up 30% compared to 2018.
In the second quarter, average rents nationally were $1,736, up $251 from a year ago.
Managing director and senior economist at Wells Fargo & Co., Mark Vitner, explained a “perfect storm” of factors is causing rents to rise higher than ever. This includes increased wages, a strong job market, and higher demand for new apartments. The Sunbelt has been particularly affected. Florida dominated the list with the highest year-over-year increases in rents.
The Mangat Group has plans to construct a 20,000-seat stadium in Buckeye
According to AZ Big Media, a Glendale-based land development group, the Mangat Group, has shared its plans to create an international cricket community in Buckeye, Arizona. The 20,000-seat world-class cricket stadium will be known as MG Cricket Stadium.
Cricket is gaining popularity in the US, and the founder of the Mangat Group, Tony Mangat, wants to create a place for all cricket enthusiasts to enjoy.
While there are cricket complexes in other sections of the US, including Los Angeles, Indianapolis, and Pearland, Texas, MG Cricket Stadium will be the first located west of the Mississippi and the second ICC-Certified cricket stadium in North America.
The facility will contain a state-of-the-art soccer field and pickleball court, a cricket stadium, and a training facility for players. Twenty more acres will have a hotel and shops for entertainment.
Rise48 Equity has completed $1,665,551,000 in total transactions since 2019. We currently have $1,224,986,000 of Assets Under Management, all in the Phoenix MSA.