Scottsdale, Arizona Market Update: Q2 2023

By Yvonne McFadden

GROWTH AND EXPANSION IN SCOTTSDALE'S REAL ESTATE AND ECONOMY

Scottsdale, Arizona, a desert oasis known for its luxurious resorts, world-class golf courses, and vibrant arts scene, has been experiencing robust growth throughout the years. As we progress through the second quarter of 2023, it's time to take a closer look at the latest trends in Scottsdale's real estate market and overall economic development. This market update will provide a comprehensive analysis of the factors driving growth and what to expect in the near future.

Real Estate Market Trends

1. HOME PRICES

Scottsdale's real estate market has continued to see strong growth in Q2 2023, with median home prices increasing by 6.5% compared to the same period last year. The rising demand for homes and a limited supply of inventory have contributed to the increase in prices, making it a seller's market. With low mortgage rates persisting, homebuyers are eager to enter the market, driving up competition for available properties.

Housing Inventory

Inventory remains tight in the Scottsdale housing market, with a 2.4-month supply of homes at the end of Q2 2023, down from 3.1 months in the previous year. The lack of inventory has been a primary factor in the price increases, as buyers have fewer options and are willing to pay a premium for the available properties. Additionally, new construction has been unable to keep up with the demand, creating an ongoing deficit.

3. RENTAL MARKET

The rental market in Scottsdale has also seen significant growth, with the average rent for a one-bedroom apartment rising 4.2% in Q2 2023 compared to the same period in the previous year. The surge in remote work and a desire for larger living spaces have made renting an attractive option for many, contributing to increased demand and rental rates. This trend is expected to continue in the short term, as remote work remains popular and job growth drives population increases.

Economic Factors And Developments Job Growth

Scottsdale's economy has been steadily expanding, with job growth surpassing the national average. In Q2 2023, the city saw a 2.8% increase in employment, compared to the national average of 1.5%. The technology, healthcare, and financial sectors have contributed heavily to job growth, with companies like Axon, HonorHealth, and Vanguard making significant

investments in the area. POPULATION GROWTH

The population of Scottsdale has been steadily increasing, with a growth rate of 1.6% in Q2 2023. The influx of new residents has been driven by the city's strong job market, quality of life, and desirable weather. This population growth is expected to continue, further fueling demand for housing and contributing to the city's economic development.

Infrastructure And Transportation

Scottsdale is investing in its infrastructure and transportation systems to support the growing population and economy. Recent projects include the expansion of the Loop 101 freeway, providing improved access to neighboring cities, and the development of the SkySong Innovation Center, which aims to foster collaboration and growth in the technology sector.

Conclusion

Scottsdale's real estate market and economy show no signs of slowing down in Q2 2023, as the city continues to experience strong growth in home prices, rent rates, and job opportunities. With a healthy economy and a thriving real estate market, Scottsdale remains an attractive destination for those looking to invest or settle down in the sunny Southwest. While challenges such as limited housing inventory and rising prices persist, continued investments in infrastructure and development projects are expected to help mitigate these issues in the long run.