Since making Arizona their preferred location in recent years, investors of all skill and monetary levels are finding the stateâ€™s real estate market to be a fantastic investment decision. Investors have a wide variety of properties to choose from, and the region also boasts a burgeoning population, a booming tourism industry, first-rate amenities, construction of major industrial and commercial centers, and reasonably priced housing. But what are the best neighborhoods in Phoenix for real estate investments?
The Cromford Market Index shows the Phoenix housing market is starting to balance after a two-year sellerâ€™s market run. Zillow reports that Phoenix home values dropped by 2.8% between June and July of this year. Despite the decline in value this summer, Phoenix home values have still increased by a staggering 69.5% since July 2019.
In addition to waning demand, an influx of home listings has balanced the market as rapidly as weâ€™ve seen in our marketplace. Only a few weeks ago, new listings were arriving very fast, but this seems to have subsided for now, which has created balance in our market. Some areas remain heavily weighted in the buyerâ€™s favor, but overall, the market looks ready to settle into a more stable situation if current trends persist.
Here is a list of the best neighborhoods in Phoenix if youâ€™re looking to invest in real estate for:
Best neighborhoods in Phoenix for long-term appreciation:
Arrowhead: Due to its established communities, tree-lined streets, a plethora of shopping outlets, and mountain vistas, Arrowhead is a highly sought-after place for many homeowners. Without the hassles of expansion and construction, this location offers existing suburban neighborhoods a wealth of amenities. With less money, you can have finer housing, closer access to outdoor recreation such as hiking, and more in the West Valley.
Maryvale: An urban village of Phoenix, Maryvale is a very affordable neighborhood located between downtown and GCU. The communityâ€™s efforts to improve and restore the area make this neighborhood highly sought-after. There are plenty of recreational activities for both parents and children, as well as modern ranch homes and schools nearby.
Scottsdale: Scottsdaleâ€™s popularity as a tourist destination only continues to grow, as does the number of people investing in short-term rental properties in this wealthy Phoenix suburb. Beautiful weather, Cactus League Spring Training games, the Waste Management Open, and Barrett Jackson have long been draws for spring visitors, ensuring a steady flow of winter and spring visitors in need of housing. The Scottsdale housing market has appreciated by 10.33% over the last 12 months. According to Neighborhood Scout, this rate is top tier in the US, beating out 94% of cities and towns in the nation.
Glendale: From sports arenas, to the massive water park thatâ€™s going up, Glendale is on the rise! The restaurant and entertainment industries in Glendale continue to improve and with quick access to the Cardinalâ€™s stadium (think Super Bowl and College Football Bowl Games) and Spring Training facilities, Glendale is proving to be a desirable location for short-term rentals. Add to the sporting events the fact that Glendale is close to the new semiconductor manufacturer and you can see why investing in a short-term rental in Glendale could prove profitable.
Paradise Valley: Home to some of the worldâ€™s best resorts and golf courses, Paradise Valley continues to rank among the nationâ€™s most expensive zip codes. One-acre lots, stunning luxury homes, and a lush desert environment are top draws for home buyers making Paradise Valley their primary, secondary or tertiary residence.
Biltmore Area â€“ Phoenix: The Biltmore area of Central Phoenix is sandwiched between Arcadia, North Central Phoenix, and some portions of Paradise Valley. That triangulation provides wonderful opportunity as the areas bordering it squeeze the Biltmore as far as pricing is concerned. The area allows for quick access to the Camelback Corridor (think banks and restaurants) as well to downtown, the airport, and Scottsdale.
Scottsdale: North Scottsdale is a highly sought-after residential location because of its stunning mountain views, good restaurants, wealthy communities, and high-end shopping. Many of North Scottsdaleâ€™s most prestigious neighborhoods have championship golf courses, lighted tennis courts, resort-style swimming pools and spas, clubhouses, and dining options. You can enjoy the best of outdoor life and take in each glorious, famously setting sun in sophisticated, attractive houses with amenity-rich backyards and large outside patios.
Gilbert/Chandler/Mesa: The East Valley has become a huge semiconductor hub, with massive corporate investments and thousands of new jobs coming to the area. Along with this growth comes a sustained demand for housing, and developers are working hard to keep up. This bodes well for home values in all of these East Valley neighborhoods, making them some of the most desirable in Metro Phoenix. As a flipper, these parts of town offer relatively newer homes that donâ€™t require substantial â€œremodeling,â€ just some lipstick.
North Central: Those seeking city amenities and a suburban life are drawn to the walkable, charming lifestyle that this area offers. North Central Phoenix is one of the parts of the city that is expanding the fastest, with features like the farmersâ€™ market and miles of hiking trails running through the heart of the city. The lushness and old-growth trees attract people from the midwest as it feels more like an oasis than a desert.
Downtown Phoenix: With Creighton University opening a 195,000 square-foot Phoenix campus at Park Central Mall and ASU expanding its downtown footprint, the demand for city living has finally hit Phoenix. An explosive restaurant scene, plentiful arts and culture, as well as sports entertainment, and the popularity of downtown living should result in continued increases in renters.
Arcadia: Arcadia, a desert oasis, is renowned for its expansive grassy lots, copious citrus trees, contemporary ranch homes, excellent schools, and some of the Valleyâ€™s greatest dining establishments. Customers who want a tight-knit neighborhood and well-kept rental houses keep picking Arcadia.
The greater metropolitan Phoenix area is without a doubt one of the best states in which to make a real estate investment at the moment. Due to the excellent quality of life these communities provide, property values are rising, the rent-to-price ratio is excellent, and the population is gradually growing. The aforementioned best neighborhoods in Phoenix should be at the top of your list if youâ€™re looking to buy real estate!