Why are so many Real Estate Investors rushing to the Arizona Investment Property Market?! Rental households comprise 34% of the housing stock, and are growing at the incredible rate of 1.6 million per year, while owned occupied households are actually declining in number. This is an incredible surge in demand. Some may say that the new American Dream is going to be “Renting”.

In a summary of the U.S. housing market, only 20% of renters live in large buildings or so called Mutli-Family Housing (20+ units), and the remaining 80% of renters live in alternative types of housing such as Single-Family Homes and Townhomes.

Approximately 55% of new renters are renting single-family homes, while 45% are renting apartments. The single-family rental markdet, which is already larger than the institutional quality apartments, is booming. Unprecedented levels of distressed home sales, at home price/rent ratios that are the lowest in decades, is driving the boom.

With some much demand for newer homes in Arizona, the supply diminishing and more and more investors coming into the valley with Big Money it is difficult to win bids out there. If you are an FHA buyer or even Conventional financing with 10 to 30% down, you are left on the back burner as cash offers of above asking price are what is dominating the market. More and more privately owned homes are becoming available on the market as opposed to just about 1 year ago when REO (Lender Owned) homes and Short Sales ruled the Multiple Listing Service.

Seems as though our market is changing for the better…although if you are an agent representing buyers, you are probably having a hard time getting your clients into something in today crazy market.

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