According to a recent study, more than half of California residents have considered packing up and moving out of state within the last year, and 63% of them have considered Arizona. Some of those polled may have decided to make the move. Information from the Greater Phoenix Economic Council (GPEC) revealed that in 2020 approximately 60,000 former Californians moved to Arizona. A review of recent mortgage application data shows that the Californian migration into the Grand Canyon State is continuing in 2021.
California Migration into Arizona
According to a recent article,? 28% of Arizona’s new residents came from California. Additionally, new data revealed that from 2006 to 2018, on average, 52,251 people moved from California to the Grand Canyon State each year, while only 32,361 people moved from Arizona to California. The research also revealed that California citizens were the largest source of new residents for Arizona. Since the outbreak of the COVID-19 pandemic, it seems as if more Californians are moving into the state.
Arizona Mortgage Application Data and Trends
Fulton Homes, reportedly Arizona?s largest family-owned and operated homebuilder, routinely reviews various data to evaluate emerging homebuyer and industry trends. As part of its review, the company collects information from mortgage applications as a data point. Recently, Fulton observed that application data showed a high number of Californians moving into Arizona. Doug Fulton, CEO of Fulton Homes, commented that ?The applications for home loans tell us a lot about the health of the market.? Fulton went on to indicate that during the process, his company relies upon feedback from its lending partners to plan for the future as a builder.
One of Fulton?s lending partners, Phyllis Casillas with On Q Financial, Inc., also indicated that a significant number of new home applications are coming from California. Casillas related that remote work capability has increased buying mobility. She commented that ?More and more people are able to work remotely, and employers are opening up to the remote employee concept.? ?She also said that ?The thought process for buyers is that they can continue to work for their out-of-state employer and move to a lower-cost-of-living state, where they can buy more home and continue working remotely.? Additionally, with added concerns like California’s high cost of living and increased taxes, many Californians find Arizona’s affordability and lower tax structure to be a better alternative.
Emerging Buyer Demographics
Casillas has also noted a trend with younger buyers. She commented that ?We are seeing millennials buying homes, as they have grown into the area and started families. But more surprising is the spike of Generation Z [people born after 1997] who are entering the market because of the lower attractive rates.?
Casillas noted that retirees as another emerging new resident population in Arizona. Members of the group are downsizing into smaller, new construction customized homes. She mentioned that Futon Homes had a regular stream of retiree buyers in 2020. She related that this group?s “path is a little different: Typically, they’re downsizing from a different part of the Valley and a larger home. They’re then taking their equity to get a home with less square footage but higher levels of interior upgrades, and having little to no mortgage payment.?
Laura B. Bramnick is an Arizona real estate attorney with the knowledge and experience you need to protect your interests during every stage of your commercial real estate matter. If you are seeking an exceptional, client-driven real estate lawyer in Scottsdale, Phoenix, Sedona, and throughout the State of Arizona, contact Laura B. Bramnick to schedule your consultation.