What The Recovering Arizona Economy Means to REALTORS®
The first of four related topics which include:
- Arizona population will increase faster than the national average
- Arizona job growth to exceed population growth
- Personal income growth in Arizona to be flat
- Meet the economy head-on with concrete tips for REALTORS®
For most REALTORS®, 2014 will be a respectable year, but probably won’t break any records. Looking forward to 2015, this is an excellent time to move outside your normal routine. Attend some real-estate-related meetings (office meetings, mixers, MLS marketing meetings) and check out what is going on around you. Investigate new technology and business ideas very carefully, plan your course of action and make sure you are properly positioned when business picks up again. For details on the economic picture and more tips, read on.
Arizona population will increase faster than the national average
Arizona’s economy depends heavily on population increases to bootstrap growth—additional residents boost consumption, which improves the economy and draws in more people, which boosts consumption, and so on. Here’s what Arizona’s Department of Administration (DOA) Office of Employment & Population Statistics predicts over the next 10 years:
Arizona population growth shrank rapidly during the 2009 global recession but has begun to come back. Following the blue graph line, we can expect the growth rate to increase sharply through 2017 then level off at a little under 2% annually. It’s interesting, though, to see where that growth will come from. This year, about half of the increase will come from births and half from people moving to Arizona. By the time the growth rate peaks at 2.1% in 2017, over two-thirds of these new Arizonans will come from outside our state. Over the next five years, our population will grow 7-8%—good news for REALTORS®. Increased population means greater demand for housing, whether buyers or renters. However, an increasing percentage of these new Arizonans will be coming from other states or even other countries. These newcomers may require extra time and attention while you determine their needs and match them up with their perfect home. Understanding their expectations may include studying typical housing in other parts of the U.S. or learning effective communication styles with other cultures. Good luck with all you do. Check back tomorrow for the next section, Arizona job growth to exceed population growth. Don’t hesitate to contact me with any suggestions or comments. Ron LaMee Senior VP of Research and Member Value Arizona Association of REALTORS® ronlamee@aaronline.com
Ron LaMee
Senior VP of Research and Member Value
Arizona Association of REALTORS®
ronlamee@aaronline.com