A Glimpse Inside One of the Quickest Growing Cities in The United States: How Phoenix Continues Expanding
If you’ve been following along with our market updates, you know that Phoenix, AZ, has been shattering records when it comes to population growth, new jobs, and economic expansion. But what are the secrets to maintaining their incredible development year after year? This article aims to shed light on the triumphs of the Valley of the Sun.
Record-breaking Job Creation in Arizona
One of the most impactful aspects of Phoenix’s October growth has been the city’s ability to consistently generate new jobs across various fields. After all, new company expansion and job numbers for GPEC have remained relatively consistent in the past several years, even before the COVID-19 pandemic. In 2022 alone, there was a noteworthy period of growth, with 10,859 new jobs and 55 new businesses entering the scene. Among these new jobs, over 4,700 were considered high wage, with an average salary of $75,857.
For most cities, this growth would be deemed impossible, but Phoenix has a special way of standing apart from the rest. From fiscal years 2018 through 2022, GPEC reports indicate a range of 42 to 55 companies expanding per year.
Overall, the Arizona Commerce Authority reported that in 2023, they connected with companies committing to creating over 24,000 jobs in Arizona in fiscal year 2023. These jobs had an average wage of $71,893, positively affecting the area’s medium income. Additionally, 240 to 279 companies expressed interest in moving to the valley in the coming years. So, you can expect to see more growth on the horizon for Phoenix.
Arizona’s Employment Boom: Breaking Records and Creating Opportunities
With so many great job opportunities being introduced to the Valley of the Sun, it’s no surprise that employment rates have been on the rise throughout the area and across the state. In fact, 3,144,600 Arizonans are now employed, setting a record high. But this achievement didn’t happen overnight. Several factors contributed to the record-breaking employment and income growth in Arizona in 2023.
Firstly, the state has experienced a significant increase in job creation, with 56,700 new jobs added in the past year alone. This growth can be attributed to various factors, such as evolving business environments, favorable economic policies, and investments in critical infrastructure.
Another contributing factor to the employment boom that has swept Arizona is the state’s diversified economy. Arizona has cultivated growth across multiple industries, including technology, healthcare, manufacturing, and tourism. The state’s favorable business climate, low taxes, and supportive regulatory environment have encouraged businesses to expand and invest in Arizona, leading to job creation and increased worker incomes.
To put the cherry on top, Arizona’s strategic location and transportation infrastructure have made it an ideal hub for trade and commerce, attracting companies and boosting employment opportunities in the state. This growth has caused a butterfly effect on the average Arizonan, with the median household boosting by $3,316.
Unveiling Secrets to Arizona’s Economic Upswing
As with any major economic growth, there are many different aspects that play into the progress we’ve seen in Phoenix recently.
It stems back to 2019 when the poverty rate in Arizona began to decline. According to the data from the US Census Bureau’s 2022 American Community Survey 1-year estimates, Arizona was one of the only states to experience a significant decline in the poverty rate since 2019.
But what led to this incredible growth? Much of the credit goes to Arizona’s state government implementing several initiatives and policies to support job creation and income growth.
One of these initiatives is the expansion of apprenticeships and job training programs. By investing in these programs, the government has been able to provide individuals with the necessary skills and knowledge to secure good-paying jobs. This does more than just benefit the individuals by increasing their employability. It also contributes to the overall growth of the state’s economy.
Another policy implemented by the Arizona government supports the development of favorable business environments. In the past few years, we’ve seen steps taken to reduce regulations and streamline business processes, making it easier for them to operate and expand. This encourages business growth and attracts new corporations to the area, ultimately leading to job creation and income growth for the state.
What’s more, the Arizona government has prioritized the development of critical infrastructure. By investing in infrastructure projects such as transportation, energy, and telecommunications, the government aims to stimulate economic activity and create job opportunities. These infrastructure investments not only improve the state’s overall competitiveness but also provide employment opportunities in construction and related industries.
Phoenix Rising: Unprecedented Business Expansion
Industrial expansion in Phoenix is experiencing a recent surge, with nearly 40 businesses choosing to expand in the Phoenix area in 2023.
This growth has been facilitated by the Greater Phoenix Economic Council (GPEC) and its partners, as highlighted in their annual report. It’s no surprise that the region has become an attractive destination for businesses, especially when you factor in the resurgence of onshoring manufacturing trends. Industries such as semiconductors, electric vehicles, energy storage, climate tech, and other advanced sectors have been particularly drawn to the U.S., leading to a significant industrial expansion in Phoenix.
But what’s driving this renewed interest in onshoring manufacturing? The answer is more straightforward than you might think. With the rise of global supply chain disruptions and the need for greater control over production processes, many industries have shifted their manufacturing operations back to the United States. Phoenix, with its favorable business environment and strategic location, has emerged as a prime destination for these industries to establish or expand their operations.
Growing interest in global businesses has also fueled international expansion in Phoenix. So far this year approximately 246 companies have been considering the Valley as a potential home, including 61 global businesses. This figure represents a 25% increase in international prospects. The Greater Phoenix Economic Council (GPEC) and the state have actively worked to expand their international presence, participating in international conferences and hosting market visits. These efforts have resulted in nearly 60 prospective companies choosing Phoenix as their new home, which is a testament to the success of GPEC’s global outreach initiatives.
Phoenix’s Population Boom: A City on the Rise
Population growth in Phoenix, AZ, is driven by several specific demographic groups. One of the most prominent areas of growth has been among young professionals and millennials. The Valley of the Sun has become an attractive destination for young people due to its strong job market, affordable cost of living, and vibrant lifestyle. Young people are drawn to the city’s thriving tech industry, which has increased recently. Additionally, Phoenix has also seen a significant increase in the number of retirees moving to the area. The Valley’s warm climate, abundance of recreational activities, and affordable housing options make it an appealing destination for retirees looking to enjoy their golden years.
Projected future population growth trends for Phoenix are expected to continue upward. According to demographic studies and analysis, it is estimated that the population of the Valley will increase by 2% annually over the next decade.
Best Cities for Renters Around Phoenix in 2023
Forbes Advisor has deemed that Chandler and Gilbert are the best cities for renters in 2023.
Ninety six of the most populated cities in the United States were up for the title, but Chandler claimed the top spot with a perfect score of 100. When it comes to offering apartments with luxury amenities like dishwashers, washers and dryers, gyms, pools, and spacious layouts, Chandler ranked in the top 10, helping to solidify a spot at the top.
Gilbert secured the second-best spot for renters, with an impressive score of 99.37 out of 100. The study found that Gilbert was an ideal choice for families. This impressive score is a result of the city’s low crime rate, highest median household income, and the lowest rate of households spending one-third or more of their income on rent.
The triumphs don’t cease with Chandler and Gilbert. Two other cities outside of Phoenix made it to the top 25 list. Scottsdale secured the 16th spot, while Glendale snuck in at number 23. These rankings highlight the attractiveness of Arizona’s rental market and the favorable living conditions it offers to renters.
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