House markets across the USA have been rising for quite some time, and the effects of this can definitely be seen in Arizona. Many residents here are finding themselves priced out of the housing market, and it is creating an issue that could prove difficult to fix.
All About the Averages
Whenever we see a rise in prices like this, it is necessary to take a look at some of the averages that could be affecting things and causing the situation that has currently arisen. This can definitely be seen in Arizona, with changes here being very obvious compared to in other states where a similar situation is occurring.
The average annual salary in Arizona is thought to be about $57,091, above the national average of $53,490. This would no doubt be thought of as good, but a problem shows up as soon as you begin to look at house prices.
The average house price in Arizona is thought to be about $415,372. In 2019, this figure was closer to $319,000, meaning that house prices have risen by almost 30% in about two years. Though we have seen this increase in house prices, it has not been accompanied by a similar rise in wages. Therefore, we are seeing many people who need to find homes in Arizona, but are unable to find a good one on the salary that they have.
Problems to Consider in Arizona
Every state has its pros and cons, and this is true when it comes to Arizona. There are some things that are unavoidable when it comes to life in the Grand Canyon State, and it will affect factors like cost of living and house prices. For example, when looking at an Arizona homeowners insurance policy, there might be some clauses in there one would not find in other states.
For example, water collection and usage is obviously extremely important in a state like Arizona which has a desert climate. Though hurricanes do occasionally reach Arizona from the Pacific, this is not as big an issue as it would be to a homeowner in Florida or one of the other states that frequently has to deal with this type of weather.
This is just one of the factors that has to be considered when considering trying to find a property in Arizona. Yes, there might not be some dangers that we see in other states. However, the higher cost of water and key needs like HVAC help to balance out what can be saved thanks to the Arizona climate. There is no one-size-fits-all approach to life across the US states. House prices need to be a reflection of what the population can afford, otherwise inequalities will begin to flourish.
Other Issues to Face When House Hunting
Another issue when trying to find affordable housing in Arizona is that of snowbirds. Rather than birds that might adorn holiday cards, these are actually people from cooler states who flee the ice and snow of their homes for the warmer weather of the Arizonan “winter”. This influx of people can annoy locals for a variety of reasons, but their presence does highlight one of the issues with the housing market as a whole.
Namely, their purchase or rental of affordable properties blocks up the market that should be available to those who make their home in the Grand Canyon State all year round. Buyers are leaving properties half-empty. Landlords only want to offer short-term contracts so they can take advantage of the snowbirds’ arrival.
The job market in Arizona is really good, with major companies operating and even launching new initiatives here. However, if the locals cannot afford a home here, this can all be for nothing. It is far too easy to create a new business and then find that there is no workforce because they cannot afford local prices.
The Arizona marketplace needs to sort itself out. There are far too many people unable to afford the right home for them simply because they live in Arizona, and this is something that needs to change, or we could see a real housing crisis take root here.