AriZona Real Estate insider!

For decades, Phoenix has been the poster child of housing growth in Arizona. Now it’s the exurbs’ time to shine as people increasingly turn to less dense, more affordable communities. But what exactly are exurbs? Exurbs are areas beyond the suburbs, often more rural but with growing housing and infrastructure developments, attracting those seeking more space and a quieter lifestyle.

Most of the following information comes from a recent StorageCafe study of housing trends in over 4,100 U.S. cities from 2013 to 2022, which shows that suburban and exurban development is far outpacing urban growth. Once-idle communities are now brimming with new housing options.

Among the major cities in Arizona, housing inventory in Phoenix has only increased by 6%, similar to Tucson. Chandler and Mesa are in the middle of the pack with 17% and 12% growth rates, respectively. Gilbert is growing the quickest among traditional Arizona hotspots, with a 24% increase in housing inventory.

The Rise of the Exurbs

Queen Creek in the Phoenix metro area leads Arizona’s housing expansion:

• Housing stock grew to nearly 20,000 units in 2022, a 123% increase over the last decade.
• Population jumped to more than 64,000, a 128% increase since 2013.
• Home values have doubled, and incomes grew by 52%.
• The storage sector grew by 54%, with most of the inventory built in the last decade.

Buckeye is marching towards its goal of becoming America’s next great city:

• Population increased by 81% over the last decade, now over 95,000 people.
• Housing inventory expanded by 72%, reaching over 30,000 units in 2022.
• Home prices have nearly tripled.
• Remote work trend is boosting housing demand, with work-from-home rates tripling to 14%.

Shifting focus to Mohave County, New Kingman-Butler has also experienced substantial growth:

• Housing inventory grew by 67%, reaching 2,766 units in 2022.
• Multifamily housing boomed, with apartment stock increasing from 55 units in 2013 to 356 in 2022.
• Home prices increased by 49%, yet the area remains one of the most affordable in Arizona.
• Incomes grew by 64%.

Tucson suburbs are also entering the race for new housing:

• Valencia West and Marana saw housing stock increase by 48%, with populations up by 41% and 47%, respectively.

The Exurban Surge

The pull toward lower-density communities is strong, with more people moving to the exurbs than anywhere else. Arizona’s exurbs are flourishing as development and transformation allow people to live large in close proximity to jobs and entertainment.

Doug Ressler, Business Intelligence Manager at Yardi Matrix, shares his insights: “In a landscape characterized by flexible work setups and the post-pandemic search for more space, suburban and exurban areas are growing faster than urban cores. High-growth suburbs are emerging in areas with natural scenery, especially appealing to remote workers and retirees, as well as in places with high-performing schools near medium or large metro areas with strong job markets, even when that means paying a premium on housing.”

For a closer look at how housing markets across the nation are evolving, check out our study here: The Fastest-Growing Housing Markets in the US.

Thanks to Bianca Barsan Communications Specialist | StorageCafe for sharing this information with us

My Take: We witnessed this type of movement before the market crashed in 2008, where real estate prices pushed people outward from the city and suburbs. These areas now offer a lot of opportunities for home buyers and investors. What’s a little different from that time is that these cities now have the infrastructure and jobs in the area, whereas before, you would still need to commute. Add in the work-from-home jobs, and it makes perfect sense from a financial standpoint.

What is an Exurb?

I’m not going to lie; I just learned this term today. I always thought that was just known as the outskirts and didn’t know it had a name. Wow, you learn something new every day, and today my mind is blown. An exurb is a region beyond the suburbs, typically more rural but experiencing growth and development. These areas attract residents seeking more space, a quieter lifestyle, and often a lower cost of living, while still maintaining reasonable access to urban amenities and job opportunities. Exurbs combine the best of both worlds: the tranquility of rural life with the conveniences of suburban living.