I came across a great blog post today by Stewart Hsu, talking about the latest Population Growth Projections for the US. This first image is a map of the US with Growth Rate Projections for 2007 - 2012 (source: CCIM, stdbonline.com). At the very top of the list is Arizona, Nevada and Florida.

The next image is data Hsu assembled from the US Census Bureau data showing Growth Projections to the year 2030. Arizona tops the list with a 209% change, beating out Florida (179%), Texas (160%), and North Carolina (152%). What’s interesting to me is that Arizona’s projected growth rate of 209% far outweighs the entire United States’ Growth Rate of only 129%.

What’s that mean for investors? Stability, security, comfort of knowing that a long term Real Estate Investment here in Arizona is safe. Let’s say you bought the cookie cutter, All-american house here in Arizona- 4bed, 2bath, 2300sf home. It’s worth $265,000 (median price range), but you got it in foreclosure for a decent discount. Let’s say you paid $225,000. Assuming an average appreciation rate of 5% (pretty standard here)- in 13 years your property will be worth $499,697. Assuming you didn’t pay down the principle at all, you’d have $274,697 in equity alone. Now, don’t forget about the tax benefits of owning rental property, as well as any principle you’ll pay down during that time. TALK ABOUT A GREAT TIME TO INVEST! And, with the fastest growth rate in the Country- you’ll have no problems selling your cookie-cutter property. My personal belief is that Arizona will also see a significant increase in appreciation rates as well, thus boosting your overall ROI.

If you’re interested in picking up some foreclosures or other rental property, please contact me asap.

Data Sources: US Census, stbonline.com