Arizona Business Climate Will Spur More Residential Growth

Arizona’s successful business climate continues to demonstrate that whatever the state is doing to achieve more jobs, it’s clearly working, according to a survey published in the Phoenix Business Journal.

Latest accolades worth noting is Arizona’s reputation as one of the best states for business in the country and still improving, according to an annual survey recently published by Chief Executive Magazine.

The magazine revealed this week its yearly ranking of all 50 states and their friendliness toward business. With thousands of new jobs and strong economic growth, Arizona climbed two spots this year to land at No. 7.

In a surprise to no one (no one breathing that is), Arizona’s western neighbor, California, ranked dead last.

According to the article, the state’s economy gained steam in 2018, posting gross domestic product output growth of 4%. That was 4th best among all 50 states, according to government data. Arizona’s population also continues to grow, particularly in Maricopa County — home to the Phoenix area — which is the fastest-growing county in the U.S.

In a surprise to no one (no one breathing that is), Arizona’s western neighbor, California, ranked dead last. The Golden State was knocked for its regulations and high costs. See the full article below.

In a related article from the Business Journal, Arizona saw the fourth-highest growth in gross domestic product in 2018, according to recently released government data.

GDP in Arizona grew at a brisk 4% last year, according to the U.S. Bureau of Economic Analysis, which released new GDP data for all 50 states this month.

Arizona’s strong growth surpassed the likes of California (3.5%), Florida (3.5%) and Texas (3.2%). Only three states saw GDP grow at faster clips than Arizona: Utah (4.3%), Idaho (4.1%) and Washington (5.7%). Read more in depth below:

So, what does all this mean for residential real estate Mike? Good and not so good, really. For property owners, more and better jobs plus a very healthy economy, sends a message to other states that Arizona is doing business. The more that companies relocate here, the more jobs are created here and the more that income is produced here. This in turn creates more demand here as wages rise – especially in the building trades. The more that business rises here, the better for homeowners (supply and demand).

The downside is at usually that whatever is good for owners/landlords is a knock against renters. And we need them.