What the recovering Arizona economy means to REALTORS®
by Ron LaMee, Senior VP of Research and Member Value, Arizona Association of REALTORS®
The second 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 job growth to exceed population growth
With our population expected to grow 7-8% over next five years, new residents will be looking for jobs. As the adjacent Total Nonfarm Employment chart shows, Arizona’s Department of Administration predicts that job growth will slowly improve through 2015 and will even exceed population growth.
The picture is different throughout the state with Tucson and outlying areas increasing significantly and Phoenix growth moderating. In any event, job growth will continue to meet the needs of the growing population. Once again, Arizona will exceed the national average, but remember, our increases start from a very deep slump during the recession. Barring any major economic impacts, Arizona can expect to maintain job growth for the future.
REALTORS® should see these job forecasts as positive, but it is also important to pay attention to what kind of jobs are created. Low-paying jobs tend to stimulate business with lower-cost rentals and homes. Higher-paying jobs mean more mobility and larger, more expensive homes. As jobs are created, you should begin to research typical pay scales of those jobs, do the math on loan qualification, then start locating homes around the estimated price range. This knowledge will provide insight into potential clients’ income and where to start in showing them appropriately-priced neighborhoods. The more you know, the more effective you will be and the more likely you are to receive referrals.
Good luck with all you do. Check back tomorrow for the next section, Personal income growth in Arizona to be flat. Don’t hesitate to contact me with any suggestions or comments.
Senior VP of Research and Member Value
Arizona Association of REALTORS®