Why does Phoenix still have such a shortage of properties?
As we learned from my previous posts on this series (part 1 and part 2) this inward migration from the east coast and midwest into Phoenix is one of the key reasons home prices will continue to rise for the foreseeable future. There’s a logical explanation for the shortage of properties.
Look first at the motivation for out-of-state companies to come here in the first place:
It started when California changed their tax code and started to tax the Internet retailers. So when those Internet retailers started coming into Phoenix, they began by taking up our warehouse spaces. At the same time the Arizona legislature restructured our tax codes so that we were more competitive with states like California, Texas, and New Mexico. ~ Tina Timboer, Cromford Report
Notice our standard of living here compared to other major cities. Those companies coming here don’t have to pay their employees as much money. Why pay them a six figure salary, when they can get the same middle class life out here, but for much less? You can get a 2,400 sq ft, four-bedroom, two bath home out here for very affordable prices. Compare us against New York, San Francisco, even Texas. Plus, GPEC (Greater Phoenix Economic Council) has just done a great job to attract those out of state businesses, too.