Out of Phoenix, Salt Lake City, or the California region—which West Coast market would win? John Burns Real Estate Consulting puts the three markets to the test, comparing each by economy, housing, and rental market. When it comes to the economy, John Burns says Phoenix has turned into a “job magnet” and the pandemic could not halt jobs from growing. Salt Lake City, on the other hand, benefits from its diverse job market and touts a less than 5% unemployment rate. California experienced some fleeing workers due to telecommuting opportunities, and employment is not robust across all sectors. Read more to see which region wins for housing and rental markets.
The Housing Market
Phoenix is one of the most generationally diverse housing markets in the country. Entry-level and move-up buyers started the trend in Phoenix with in-migration from expensive California markets. Add the active adult buyer, and Phoenix is now one of 12 housing markets we rate as Very Strong. Our September survey determined that year-over-year (YOY) new home prices were up 10% in Phoenix (the national average was 8%), and actively selling new home communities averaged better than 6 sales per month.