By Jennifer Conrad, Managing Editor
It’s February 14th, and Arizona’s 113th birthday is here! Officially admitted as the 48th state of the U.S. on Valentine’s Day 1912, Arizona has come a long way since its early days, becoming a top destination for newcomers and a major player in the nation’s economy. While the world is celebrating love today, let’s talk about why Arizona deserves some extra affection.
Why Are People Moving to Arizona?
If you’ve been paying attention to moving trends, you know that fewer people are relocating across the country these days. As U.S. Census data shows, 87.9% of Americans are staying in their homes, a big jump from a decade ago. Yet, Arizona continues to be a popular destination for many, and for good reason.
In 2023, over 7.5 million people made state-to-state moves, with Arizona ranking high on the list. But why?
It’s all about affordability, job opportunities, and a quality lifestyle. Arizona offers a much more affordable living compared to coastal states like California, and it has a booming job market that’s attracting younger generations. In fact, almost 60% of movers to Arizona are Gen Z and millennials who are seeking lower-cost housing and better career opportunities. The rise of remote work has also played a big part, as more people choose to make Arizona their home and enjoy its sunny climate.
Arizona’s Economic Outlook: Growth Despite Challenges
Even with some headwinds, such as reduced housing affordability, higher interest rates, and a tight labor market, Arizona’s economy is holding steady. According to recent data from the Economic and Business Research Center, Eller College of Management, The University of Arizona, job gains in Arizona are outpacing national growth. Preliminary figures show that Arizona added about 65,000 jobs in the past year, representing a 2.0% growth rate, which is significantly above the national rate of 1.3%.
Phoenix is leading the charge, with 69% of the state’s job growth coming from this area. Arizona’s unemployment rate stands at 3.6%, lower than the national average of 4.1%. In fact, Arizona’s job growth is expected to accelerate to 2.9% in 2024, outpacing the U.S. once again.
But it’s not all smooth sailing. The state faces challenges with a decelerating retail sales market and slower growth in restaurant and bar sales. Arizona’s taxable retail and remote sales have dropped slightly, reflecting a broader trend in consumer spending. While some industries are slowing down, Arizona’s tech and healthcare sectors continue to expand rapidly, ensuring that the state’s economy remains resilient.
Housing Market: Modest Price Increases, But Still Affordable
When it comes to housing, Arizona’s market is still feeling the effects of the past few years. House prices have continued to rise, but at a much slower rate compared to the explosive growth seen in 2021 and 2022. In October 2024, the median home price in Phoenix was $449,900, up 3.4% from the previous year. Tucson’s median price was lower at $352,000, showing a slight decrease of 0.1%.
Despite these increases, home prices are still well below their peak in 2022, making Arizona’s housing market more accessible than many other states. For those looking for affordable housing, Arizona remains a key destination.
What’s Next for Arizona’s Economy?
Looking ahead to 2025, Arizona’s economic outlook remains positive. Job growth is expected to continue, particularly in the education, healthcare, and professional services sectors. However, the state is not immune to national economic shifts. If the U.S. economy faces a downturn, Arizona might experience slower growth, but experts predict the state won’t face any drastic downturns.
Arizona’s population growth is also forecasted to slow down, especially as higher mortgage rates continue to keep some people in place. Nevertheless, net migration—people moving to Arizona from other states—remains the driving force behind population growth, and it’s expected to continue.
Arizona’s Rising Appeal: Why More People Are Moving Here
As we celebrate Arizona’s birthday, it’s important to recognize the factors that make this state such a magnet for new residents. Affordable housing, a growing job market, and stunning natural beauty are just the tip of the iceberg. Whether it’s the appeal of the warm weather, a thriving tech sector, or simply the desire for a change of pace, people are flocking to Arizona in increasing numbers.
Arizona’s economy is positioned for continued growth, with a strong job market, a steady housing market, and a favorable cost of living. As the state enters its next 113 years, it will remain a place where new opportunities, a high quality of life, and endless sunshine await. Happy Birthday, Arizona! Here’s to many more years of success and growth! 🎉🌵
Source: Economic and Business Research Center, Eller College of Management, The University of Arizona
