Phoenix Market Report
Population Migration and Business Expansion Position Phoenix for Post-Pandemic Growth, Drawing Both Local and Out-of-State Investors
Favorable demographics bolster market during turbulent times. Building on years of above-average population growth, Phoenix led the country in net in-migration during 2019, welcoming over 77,000 new residents that year. This relocation trend likely remains undeterred in 2020 as the health crisis has not eroded the appeal of the market’s lower population density and cost of living. Growing residential interest is reflected in rising single-family home prices. The Case-Shiller Index of existing home prices appreciated by nearly 7 percent between January and August, the highest rate among tracked metros. Phoenix’s continued expansion is poised to benefit commercial real estate broadly. One area that may be slower to recover is Central Phoenix. More than 3,700 apartments are underway in the urban area, but the current health landscape may push incoming residents to other, less dense parts of the Valley.