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Arizona Population Growth and What it Means for Investors
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. Those that own land in Arizona currently will be in a great position as the metropolis growth continues to exceed the rate of new construction.
Let’s examine the factors:
Large corporations call Arizona home, with aerospace, electronics, financial institutions, and tourism being the leading industries. Phoenix Sky Harbor Airport also traffics more than 40 million passengers a year, creating no lack of employment opportunities for migrants. The Phoenix metro area generated $187 billion in the value of goods and services produced in 2008, one of the toughest years for the American economy.
Housing and cost of living in Arizona continue to be moderately low. The metropolitan area is relatively young in comparison to other leading US cities, as is the construction. Another draw for mid-westerners and east coasters.
Tourism and climate are probably the two most influential factors in Arizona growth. Coming to the state in 2015 are the Super Bowl, the Pro Bowl, the Fiesta Bowl, the FBR golf tournament, and Cactus League MLB Spring Training, to name a few. More than 700,000 vacationers will be in town during this peak season. When winter hits the rest of our great nation, Arizonans enjoy 75 degree weather and blue skies. Tourists from all over the country flock to the state to escape the cold, resulting in economic stimulus, and migration for those who don’t want to go back to scraping ice of their windshields.
Our lack of natural disasters also makes Arizona appealing to a wide demographic. There are no hurricanes, tornados, snow storms, or earthquakes in the area. Monsoon season falls at the end of July and beginning of August, but usually the storms last less than an hour, and are more fun to watch than they are dangerous. Financial corporations and large development companies choose the state because of this, as well as individuals who may have experienced Mother Nature’s wrath. It’s a safe place to call home.
What does this mean to investors?
The Phoenix Metropolitan area is a prime place to invest in Real Estate. Because the population growth exceeds the rate of development and availability of land, it will become a simple case of supply and demand. Those who own property in Arizona will be in a great position. The demand for housing is projected to be such that we can’t build fast enough. Buy and hold now, for a spike in future equity.
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