Positive Growth!
Arizona will have a positive economic outlook in 2024 due to employment growth, corporate expansions and a healthy housing market and wage growth. Over a 30-year horizon we continue to expect Arizona to become one of the ten most populous states with over 10 million people.
Home prices within the Phoenix real estate market have risen steadily over the past few years, and that trend is predicted to continue through 2024 and into 2025. A lack of inventory is one of the main reasons why home prices are climbing in Phoenix. Home prices have been moving higher, foreclosures are down sharply, and the inventory of unsold homes has dropped dramatically. As of July 31st 2024, the median home selling price for this housing market was $424,333. The median for the broader Phoenix-Mesa-Scottsdale metropolitan area was roughly $466,000, during that same timeframe.
The chart below, provided by Zillow, shows their home value index for Phoenix going back seven years. It also shows their forecast for house prices in the city, extending into 2025. As you can see, it has been a fairly steady climb since 2017.
Long-Term Outlook
By 2025, it's forecasted that Phoenix will become the 4th most populous city in the US, and by 2030, the US Census Bureau estimates its population will reach 2.2 million with a metropolitan area that's home to 6.3 million. The 30-year projections show Arizona’s population topping 10.2 million in the year 2042.