Rising Property Values
Presentation Time: Mon, 05/09/2022 - 11:00
Keywords: Arizona Population, California Population, Property Value, Cost of Living, Inflation
Over the last decade, Arizona has seen an increase of property values that resulted in an increase in cost of living. Reports of housing units shows there has been a steady rise in housing units in the most populated cities in Arizona. This study allows for a homeowner or investor to become aware of the best time to purchase property or home as the market rise and fall. This study also provides the reader to understand the root cause of the rising costs of living. Climate change has been a major issue in California as there has been an increase of wildfires over the last decade. Data is used to show the amount of damage caused by wildfires throughout the state. By using Arizona and California population, an assessment of population disparity over the last decade provides fidelity of population to housing unit growth. This data is compared to average cost of the housing market in the respective counties. The implications of this study for homeowners or investors would be anticipated losses if the current housing bubble burst. The result of this event would be a loss in equity of a homeowner that purchased property during the time of inflated costs. The result of this study provides data to make sound purchases as the prices fluctuate due to inflation. This study shows that there was a steady increase of 1% year to year in housing units since 2016. This does not seem like a significant amount but it’s an increase of 100,000 units in five years, with over a 200,000 increase of population, for one county in Arizona. The total number of population increase is direct reflection of the most populated counties in Arizona. Even though there isn’t a direct correlation between the two states populations the counties surrounding Phoenix and Tucson have similar lifestyles as the populated counties in California. As the study focuses on the root causes of the inflated prices, the outside influences that are migrating to Arizona, due to the lower cost of living, will cause a housing crisis when the economy bounces back.
