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In recent years, the state of Arizona has become an increasingly popular destination for Americans looking to find a place that they can call home.
Much of Arizona is home to a very forgiving climate that rarely gets too cold. The warm temperatures throughout the state have made it particularly attractive for older folks looking to settle down in retirement.
The breathtaking natural beauty of Arizona has also made it enticing for homebuyers. The incomparable Grand Canyon, mountains, deserts, ski resorts, and national monuments have all made Arizona a great place to live.
Besides the weather and scenery, The Grand Canyon State features a strongly performing economy that attracts homebuyers seeking a comfortable living.
Arizona’s GDP gives the state a larger economy than nations such as Ireland, Finland, and New Zealand. The health-care, transportation, government, and tourism economic sectors are particularly healthy in Arizona. Interestingly, two-thirds of the U.S.’s copper output comes from the state.
Arizona’s median household income of $50,448, good enough for 22nd in the country. There are plenty of employment options for residents, including Banner Health, Intel Corp., and Honeywell International Inc.
So, there are plenty of reasons to move to Arizona. But, it is the sixth largest state, and choosing a particular town or city within Arizona to call home can become very difficult.
That is why LendEDU has put together a list of the 75 communities in Arizona that are best for homebuyers.
Using licensed data, hundreds of Arizona towns and cities were judged on the following three parameters:
- Five-Year Population Forecast Score (40 points, listed in table as Population)
- Home Income to Home Value Ratio Score (40 points, listed in table as Value)
- Five Year Income Forecast Score (20 points, listed in table as Income)
The three above parameters were chosen because they can each have a serious impact on the investment a person makes on a house. You want to be able to get good value on a home relative to your income. And, you want to purchase a home in an area where the population and income is expected to grow so that the demand, and thus value, will go up.
The 75 Arizona communities featured in this report have been recognized by LendEDU as the best places in the state to buy a home.
Ranking the Best Places to Buy a Home in Arizona
All data used in this study has been licensed by LendEDU from Onboard Informatics. All data was broken down by ZIP Code initially, but these metrics were eventually aggregated according to their respective town and city name. Data for cities with multiple ZIP codes were averaged together and weighted by population. In total, LendEDU evaluated more than 250 Arizona towns and cities. A population cutoff was set at 2,000, meaning any town or city with a population below 2,000 was eliminated from further analysis.
Five-Year Population Forecast Score (40 points maximum)
The first parameter, Five-Year Population Forecast Score, was calculated by using the current population figures and the five-year projected population figures. Onboard Informatics’ dataset provides the projected growth in population over five years in a given town. A percent change equation was used to figure out the percent increase or decrease in population in five years. Each individual percent change was ranked on a percent scale from 0 to 100 against the field. Each percent rank was multiplied by its weight (40 percent) to produce the Five-Year Population Forecast Score. The maximum value score for this parameter was 40 points.
Home Income to Home Value Ratio Score (40 points maximum)
The second parameter, Home Income to Home Value Ratio Score, was determined by dividing the median household income by the median household value in a given area. The value ratios were ranked against one another on a percent scale from 0 to 100 percent. Each individual percent rank was multiplied by its weight of 40 percent to produce the value score. The greatest possible value score was 40 points. This score was indicative of the value a town’s residents could expect from a typical home purchase relative to typical income in the area.
Five-Year Income Forecast Score (20 points maximum)
The third and final parameter, Five-Year Income Forecast Score, was scored by using the median household income and the five-year median household income projection. Similar to the population projections, Onboard Informatics’ dataset has provided the projected growth in income over the next five years in a given town. A percent change equation was used to determine the percent increase or decrease in income in the next five years for each city and town. The values were ranked against each other on a percent scale from 0 to 100 percent. Each individual percent was multiplied by its weight of 20 percent to produce the score. The maximum value was 20 points.
After each and every town and city in Arizona was given a score for each parameter, the parameter scores were summed together to get the final score. A score closer to 100 was more favorable. The 75 cities and towns that recorded the highest final scores were the ones included in this report.
See more of LendEDU’s Research
Author: Mike Brown