The Phoenix metro population grew to 4,948,203 people by July 2019, making the Valley the No. 10 most populous in the country and bumping Boston out of the top 10, according to U.S. Census Bureau data released Thursday. From April 1, 2010 to July 1, 2019, the Phoenix area added 755,074 people, meaning, on average, the Valley grew by about 207 people per day during that decade, including babies born and people moving to the area…. According to U.S. Bureau of Labor Statistics data released in February, Maricopa County also experienced the biggest increase in job growth among the largest counties. Between September 2018 and September 2019, Maricopa County had a 3.2% increase in employment, adding 106,600 jobs.
The Arizona Technology Council’s quarterly Arizona Technology Industry Impact Report shows that in Q4 2019, tech jobs increased by almost 15,000 jobs, wages increased by $2 billion and average pay increased by a little over $3,000 compared to the year-earlier period, said Steve Zylstra, the president and CEO of the Tech Council. The report, released this month, shows that Arizona’s technology jobs are growing 2.1 times faster as compared to the U.S. overall.
Apartment rents witnessed the slowest annual rise in 17 months – a 3% increase in one year, reaching $1,474, according to a report from RENTCafé. The national average rent ended 2019 by slipping $1 compared to November, but the rent increases are still an average of $43 more compared with one year ago.
Here are the highlights for rent increases in Metro Phoenix:
• Phoenix ended the year charging $1,123 in average rent, after a $98 increase over one year, or 9.6%. This is the largest increase from among the US renter mega-hubs.
• Even higher increases were registered in Avondale, 11.2%, and Mesa, 9.9%. Avondale rents added $122 since the end of 2018, reaching $1,215. Meanwhile, Mesa average rents went up $99, to $1,094.
• Scottsdale charges the most expensive rents, $1,560 on average. They went up $91 compared to one year ago.
• The cheapest rents are in Glendale. Here the average reached $1,026, after adding $79 since the end of 2018.
• The slowest rent increase was registered in Goodyear, as rents here added $62 in one year, reaching $1,252.
The theme of the 13th Annual IREM-CCIM Economic Forecast was “The Real Scoop.” Judging by the comments of economists and industry panelists, the message that resonated was “Phoenix and Arizona are on fire.”
“Last year we talked about being late in the game and would there be extra innings,” said keynote speaker Elliott D. Pollack. “Where do we stand in the cycle now? Well, Phoenix is the most affordable major market in the Western U.S. We’re growing at three times that of other U.S. cities and still need to figure out how to deliver affordable housing. We’re likely to remain one of the top five metro areas in the country. Overall, I’d say the picture is positive.”
The Valley’s premier real estate outlook recently drew a crowd of more than 400 at the Omni Scottsdale Montelucia. Besides Pollack, the Economic Forecast featured panelists who specialize in office, industrial, multifamily and retail properties.
Arizona gained nearly 111,000 residents in the 12 months ending June 30.
But you’d be wrong to think they spread out pretty evenly among the state’s 91 cities.
New figures Thursday from the state Office of Economic Opportunity find Queen Creek and Buckeye the biggest year-over-year gainers, each boosting population by more than 7%.
Maricopa was not far behind at 5.1% with growth exceeding 4% in Goodyear, San Luis, Marana and Clarkdale.
Glendale grew by only 0.6%, lower than the state average of 1.6%. Peoria was slightly higher, with 2.3% population growth in the last year.
Avondale grew by 2.4%, Litchfield Park was up 1.8%, Surprise grew by 2.5% and Youngtown 1%.
Buckeye is the state leader in population growth since 2010, up by 60%. Goodyear is not far behind with 35.9% population growth since 2010.
Glendale’s population growth since 2010 is 7.1%.
Peoria grew by 16.9% since 2010.
Maricopa County and the state both grew by about 12% since 2010.
The numbers and the growth rates are more than just bragging rights.
Even a rise in interest rates cannot slow Arizona’s red-hot housing market.
“The modest uptick in mortgage rates over the last several months reflects declining recession fears and a more sanguine outlook for the global economy,” says Sam Khater, chief economist for Freddie Mac. “Due to the improved economic outlook, purchase mortgage applications rose 15 percent over the same period a year ago, the second-highest weekly increase in the last two years. Given the important role residential real estate plays in the economy, the steady improvement of the housing market is a reassuring sign that the economy is on solid ground heading into 2020.”
That renewed confidence in the economy has most Arizona experts bullish on Arizona’s residential housing market.
When it comes to mid-shopping snack breaks or Friday night dinners, shoppers at Scottsdale Fashion Square have quite a few new places to try. Ocean 44, Tocaya Organica, Toca Madera, Pokitrition, Mia Pasta, and Rewind Ice Cream + Tea have all opened within the last year, most within the last few months.
More restaurants are on the way: Nobu, Farmhouse, Zinqué, and two restaurant concepts from Food Networks’ Giada De Laurentiis.
While Nobu and Farmhouse are not expected to open until next year, and Giada’s restaurants at Caesar’s Republic Scottsdale not until 2021, the owners behind Zinqué, a French-inspired concept, Emmanuel and Kristin Dossetti said their restaurant and bar is expected to open soon — really soon.
Silicon Valley Bank secured an additional 60,000 square feet of office space in Tempe, Arizona. The company plans to grow its presence by more than 300 employees in the next three years.
Silicon Valley Bank is currently located at Hayden Ferry Lakeside near Tempe Town Lake and has more than 700 employees, according to Arizona Commerce Authority. With the expansion, the company now has 190,000 square feet in the Hayden Ferry Office Complex. The roles to be filled in the new Tempe location include IT, finance, operations and corporate shared services.
“We’re pleased to expand our presence in Arizona and continue to attract outstanding talent from the Tempe region,” said Phil Cox, COO at Silicon Valley Bank. “At SVB, we have the opportunity to grow and collectively make an impact on the world by supporting the innovative clients and communities we serve. Our world-class team in Arizona is the engine for SVB’s continued growth domestically and internationally.”
Downtown Phoenix is in the midst of a historic revitalization effort that is reshaping the skyline and generating a buzz about the area as an increasingly attractive place to live, work and play.
Through strategic growth, the once-sleepy downtown is going from dull to dynamic, waking up to a development boom.
“Downtown Phoenix is in the middle of an incredible resurgence,” said Christine Mackay, director for the City of Phoenix’s Community and Economic Development Department. “When you go into the 1800s to the early 1900s, even the 1950s and 1960s, downtown Phoenix was a vibrant, thriving urban shopping corridor,” she said. “It’s where everybody came to do business. It’s where they came for their recreation. It was truly the city center up until about 1970. In the 1970s, it really started to flip.”
According to the Q3 Industrial Insight report from the Phoenix office of JLL, metro Phoenix now has more than 10 million square feet of industrial space under construction – the highest level of year-to-date construction activity since 2007. Despite still-rising construction costs, the JLL report cites in-migration and a growing pool of skilled labor as key factors driving the growth.
“Companies have recognized the favorable operating conditions in the Valley and they are not only driving new industrial construction but are also committing to new spec projects prior to completion of their construction,” said JLL Vice President Riley Gilbert. “Phoenix has not traditionally been known as a pre-leasing industrial market but we are seeing that now, and fully anticipate this trend to continue as the market evolves.”
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