17
Without further ado, the hottest markets in 2015
are going to be Phoenix, AZ and here’s why we’ve
come to this conclusion. As we discussed earlier,
it's not just about the market or the particular
strategy but more importantly about the operator.
In Phoenix, we have seen consistent results. We’ve
also traveled around the US, but haven’t seen
anything like what’s been happening from these
markets.
Arizona, and Maricopa County in particular, is one
of the fastest growing populations in the country,
with a yearly average of 1.25%. Phoenix, the state
capitol, has a projected population of 6.6 million
by 2030, an increase of more than 400%. This
type of rapid growth is a reflection of Arizona’s
low unemployment rate, affordable cost of living,
entrepreneurship, range of industry, tourism, sunny
climate, and lack of natural disasters. A few specific
large corporations following the migration trend
are Insight, Go Daddy, Intel, Zenefits, and Apple
just signed a deal to move into town as well.
All these companies MOVING INTO town and not
OUT are a big deal. They provide tax revenue and
stable jobs due to their size; they are considered
anchors for a market.
Those that currently own land in Arizona will be in a
great position as the metropolis growth continues to
exceed the rate of new construction. The key word
for Arizona’s real estate market in 2015 would
be ‘stable’. That’s a word we haven’t been able
to use in real estate in quite some time. According
to the Home Buying Institute, “Inventory levels are
normalizing. Housing markets are normalizing.”
We’re seeing steady growth year by year, limiting
the amount of risk involved in real estate investment
here in Arizona. A July report from ASU’s W.P.
Carey School of Business cited a “7.5 percent rise
in residential rents over the past year in metro
Phoenix.” With three generations either not ready
for or steering away from home-ownership, 2015
is a great time to invest in, buy, and hold real estate.