While the housing market has been hot across much of the country, it has been on fire in Maricopa County over the last year. And it seems that the basis for this growth goes beyond a short-term trend.
The Phoenix metro area has long been a sunbelt retiree economy. But after the Great Recession of 2008, local government leaders worked hard to restructure our economic strategies. This shift purposefully sought to bring in a wide range of industries.
The Phoenix metro area remains at the top for attracting high-quality workers, retaining jobs, and providing a great environment for startups.
Maricopa County #1 for Attracting and Retaining Jobs
A study by the labor-analytics firm Emsi showed Maricopa County at No. 1 for attracting and retaining high-quality workers. Some of the county’s recent developments pushed it to the top in the report. These include Intel’s expansion of its Fab 42 factory and the county’s growth as a leader in advanced manufacturing and semiconductors. This has fueled a major increase in skilled jobs.
“Perhaps what is most striking about Maricopa’s economy is the breadth and depth of industries,” the report said. “It’s reasonable to assume Maricopa is benefiting from a feedback loop: existing talent attracts firms and investment, which in turn attracts more talent.”
Chris Camacho, president and CEO of the Greater Phoenix Economic Council, said Maricopa County has become more competitive against other areas of the country for corporate expansions and relocations.
Phoenix Is #7 for Startups
The real estate investment platform Roofstock recently released a report that ranked Phoenix as #7 for new business formation. The report estimates that more than 6,108 businesses are being created annually, representing more than 37,785 jobs.
After the Great Recession, Arizona and its cities put together an economic policy to go after high-value jobs. And it worked! The job market is more diverse than ever in Maricopa County. Job seekers with tech skills may find numerous opportunities in Phoenix, drawing both recent grads and seasoned professionals.
Ten of the top industries in Phoenix for job growth include: health, technology, energy, construction, media, transportation, hospitality, finance, real estate, and consumer retail.
Part of what attracts businesses to Phoenix is the lower cost of doing business than many other metros. Job seekers are attracted to the cost of living, which is far more affordable than cities like Los Angeles or San Francisco.
This rapid influx of people from across the country has contributed to a housing shortage. Not only has the population experienced significant growth, but new construction homes took a back seat since the beginning of the 2008 Great Recession.
According to a July 2020 article on the Phoenix
website, a “housing gap analysis of the current housing need and the available housing stock shows that Phoenix currently has a need for 163,067 additional housing units”. Since the above statistics were released in July 2020, the housing shortage has become even more acute in the entire Phoenix area.
At RE/MAX Sun Properties, we have strategies to help you achieve success in the search for your next home. Let’s discuss the myriad of ways we can assist you!