Between higher buying demand and Millennials’ willingness to rent, the real estate market is set to have a good year.


With almost all major housing markets in the U.S. doing quite well in the past few months, it is not a shock to see the Arizona housing market in 2020 following the same playbook.

In fact, The Grand Canyon State is one of the prime areas slated to experience higher demand across a number of aspects. To see how 2020 projections can influence your buying or selling decisions in the state, here’s what you can expect from the Arizona house market this year.

  1. Affordability Will Play a Role to Increase Demand

The housing prices in cities such as Phoenix are projected to increase in 2020. The price hike is set to be minimal, but it will still come on the coattails of higher demand. 

One of the biggest reasons behind this parallel increase of both pricing and demand is how Arizona offers comparatively affordable alternatives to more expensive states such as California, and attracts shoppers looking for housing that’s lighter on their pockets. This has already started attracting buyers from uber-expensive areas, but the trend is projected to catch traction especially in 2020.

This means that if you are either looking to sell or buy an Arizona property, the next few months will be crucial for you. Keeping tabs on the Arizona housing market in 2020 trends will go a long way in getting you the best deal possible.

Read more: What are Denver apartment residents looking for?

  1. Millennials Will Still Prefer to Rent 

Even among increasing buyer demands, the distinction to fuel the rent market belongs to millennials, who are projected to focus on renting rather than buying their own housing. 

This kind of behavior will be most apparent in cities such as Phoenix and Scottsdale, where the former area statistics even paint a picture of 11 percent of millennials wanting to rent forever. Even out of those millennials that someday want to own their dream homes, 58 percent have not started saving for a down payment.

This means that if you own an Arizona property that’s perfect to rent out, asking your realtor to find some millennials will be the way to go. With the way that technology and digital marketing are set to improve the housing market mechanisms, doing so wouldn’t be difficult for realtors who are keeping up with the latest Arizona housing market in 2020 trends.

  1. Entry-level Inventory Will See Competition

It was just over a year ago that Arizona’s interest in entry-level housing caught major attention by builders and realtors in the state. This was especially noticeable in high-growth cities where real estate pricing went beyond expectations and challenged the availability of affordable housing. 

As a result, there were major efforts to improve inventory that catered to entry-level housing. Fast forward to 2020, and some of these entry-level units are all ready to compete in the midst of increasing buyer demands. 

This projection of the Arizona housing market in 2020 means that if you are looking to purchase an entry-level home, this will be the best time to explore plenty of options. But if you own a unit that qualifies as entry-level housing, you can expect some serious competition – which indicates that you should get on top of listing your property as soon as possible.

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