Stats and trends for 2022 in Phoenix

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Stats and trends for 2022 in Phoenix

Phoenix

Due to double-digit rent growth and a high price-to-rent ratio, Phoenix attracts more real estate investors than any other of the top 30 cities in the country.


Phoenix, Arizona’s capital and most populous city, is nicknamed the Valley of the Sun.

Phoenix has about 4.8 million citizens and is known for its inexpensive cost of living and 300 days of sunlight each year.

There’s lots to do in Phoenix, from the city to the suburbs. Many of the city’s museums and performing arts venues are free to the public.

Urbanization

Phoenix expanded the fastest in the last decade. The Phoenix metro area’s population rose by 200,000 people in a decade, or 11.2 percent.

Inbound migration, seniors, middle-class families from California and other states searching for more affordable housing, and IT businesses all love Phoenix.

Vital statistics:

The Phoenix-Mesa-Scottsdale metro region has almost 4.9 million citizens.
Phoenix’s population expanded 11.2% during a decade and 1.86 percent annually.

Phoenix is the state capital and the fifth most populous city in the US.
Greater Phoenix’s population will reach 5.64 million by 2029.
Mesa, Chandler, Glendale, Scottsdale, Gilbert, Tempe, and Peoria are major cities in the Phoenix metropolitan region and Maricopa County.
Phoenix is within a day’s drive of almost 40 million people, including Los Angeles, San Diego, Las Vegas, and Albuquerque.
The typical family income in Phoenix is $67,896.


Phoenix’s core


Phoenix boasts the nation’s fastest expanding job market, with about 6% increase in small company employment. Arizona’s estimated yearly employment growth rate is 1.6% for the decade.

Key job stats:

According to the Federal Reserve Bank of St. Louis, the Phoenix-Mesa-Scottsdale MSA’s GDP is over $281 billion and has risen over 57% in the last decade.


Phoenix’s unemployment rate is 3.2% as of October 2021.

Leisure and hospitality, professional and business services, education and health services, commerce and transportation are the fastest growing employment categories in Phoenix.
Advanced manufacturing, aerospace and military, cybersecurity, e-commerce and logistics, banking and insurance, healthcare and biomedical, and startups are booming in Greater Phoenix.

The State of Arizona, Wal-Mart Stores, Banner Health, the City of Phoenix, Wells Fargo, Bank of America, and Maricopa County are important employers in Phoenix.
Arizona State University, Northern Arizona University, University of Arizona, and Maricopa Community Colleges are among the educational institutions in Phoenix.
About 88 percent of Phoenix inhabitants have a high school diploma or more, and over 32 percent have a bachelor’s or advanced degree.
Phoenix has two Interstate roads and freight train routes to the West Coast, Southwest, and Mexico.
Sky Harbor International Airport provides daily flights to 142 local and international destinations.


Property market
Phoenix has the nation’s highest annual house price rise, at 29.3%. The spike in demand for Phoenix houses may be related to consumers relocating from urban apartments to suburban homes, as well as significant investor interest for Phoenix rental property. 10,11

Stats:

Phoenix’s Zillow Home Value Index is $383,924.


Phoenix home prices grew 32.5 percent in year and nearly 86 percent since 2016.
According to Realtor.com, the median listing price of a property in Phoenix is $429,000. (October 2021).

Phoenix’s typical listing price per square foot is $259
Phoenix has a $400k median sold house price.
So, on average, properties in Phoenix sell for 100.00% of their asking price.
Realtor.com says Phoenix is a seller’s market since there are more buyers than properties available.
Arcadia, with a median listing price of $1.2 million, is the priciest area in Phoenix.
Phoenix’s most inexpensive area is Central City South, where median property prices are $290,000.


Affluent renters
Investors are flocking to Phoenix, drawn by the market’s high price-to-rent ratio of 25.9 and double-digit rent increases. Phoenix has the most investors per capita among the top 30 metro regions.

Stats:

According to Zumper, a 3-bedroom property in Phoenix rents for $2,115 per month (as of December 2021).


Phoenix rents rose 19% year-on-year.
The price-to-rent ratio of 25.9 in Phoenix favors renters over homeowners.
Phoenix has 69 percent single-family homes, making it an appealing rental choice.

RENTCafé has found that renter-occupied households make up 36% of occupied housing units in Phoenix.

In Phoenix, 28% of the population is between 20 and 39 years old, a significant demographic for rental property investors.

Affordability & historic price fluctuations
The Home Price Index (HPI) and the Housing Affordability Index (HAI) are two regularly utilized data sets by real estate investors (HAI). HAI analyzes the median cost of housing compared to median family income.

Freddie Mac’s Home Price Index (FMHPI) measures average US house price inflation. According to Freddie Mac’s latest HPI for Phoenix, house values have risen approximately 82 percent in the last five years.

HPI: 179.07 in 2016; 328.66 in 2021
Home price change over 5 years: 83.5
Price change in 1 year: 30.39
Pre-2008 peak: 4.1 percent
The Housing Affordability Index (HAI) compares the median resale house price to the median family income. Buying property in a market with a HAI over 100 is more cheap than renting in a city with a HAI below 100.

Phoenix’s HAI is now 119. Buying a median cost home is still reasonable for those with a median salary.

 

Life-style
Phoenix’s excellent employment market, inexpensive cost of living, and ample sunlight help it rank 40th. Factors like net migration and popularity helped the Valley of the Sun leap 13 positions from last year’s ranking.

Key QOL stats:

U.S. News ranks Phoenix as the 40th greatest place to live and the 140th best place to retire.


Phoenix gets an A- from Niche.com, with strong marks for public schools and nightlife.
Phoenix’s cost of living is 2% lower than the national average, including cheaper health care, products and services, and housing.

Tempe Town Lake and the Desert Botanical Garden are among Phoenix’s outdoor attractions.
Phoenix’s pro sports teams include the NBA’s Phoenix Suns and the NFL’s Arizona Cardinals.
Top Phoenix hospitals include Mayo Clinic Phoenix, Banner Boswell Medical Center, and St. Joseph’s Hospital & Medical Center.

Jean Simmons
Jean Simmons

Jean has spent her whole life in Phoenix and lives for the Local News

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