Why Phoenix and Arizona Are Attracting An Influx of New Businesses - Boasting a thriving economy, a talented workforce, an innovative-friendly regulation & tax environment, and a high quality of life, it’s no surprise that an increasing number of business leaders, entrepreneurs, young professionals, and their families want to make Arizona their home. Chief Executive Magazine ranked Arizona in the top ten best states for business for the past four years. California has consistently come in last. According to Thiel Capital managing director Jack Selby“ There’s definitely a trend of California businesses leaving the state of California.” He also stated that “Unlike other states that are attracting the California transplants, I think Arizona has the unique advantage that they are still approximate to California and gives them the ability to connect with California relatively easily.
The Phoenix East Valley, also known as the high-tech corridor, is a tech hot spot for entrepreneurs and established companies alike, attracted by the area’s talent, culture, and cost of doing business. Micah Miranda, Chandler’s Economic Development Director stated “The PHX East Valley offers everything that a tech company needs to be successful. Our region has made a concerted effort to ensure that companies have access to an educated workforce, great quality of life, supply of land and buildings meeting industry needs, and reliable infrastructure.” A recent CNBC study ranked Arizona as the second-best state in the nation for attracting and retaining top workforce talent on the heels of Virginia. The study cites Arizona’s influx of educated workers and the high unemployment rate as two of the central reasons for its attractiveness to companies. “Simply put, Arizona is a great place to live. The economic opportunity available to workers, combined with an affordable cost of living, makes for a very high quality of life in Arizona,” Arizona Commerce Authority CEO Sandra Watson said.
Over the past four years, 49 California companies have chosen to do business in Arizona and the Phoenix metro area such as Stitch Fix, ZipRecruiter, Apple, and Google, just to name a few. Amazon, Acronis, Valor Global and TEKsystems have announced expansions here in the past year, and Infosys will soon create an innovation hub in Phoenix that will hire 1,000 workers by 2023. Capitalizing on California’s burdensome laws and increased cost of living, the Greater Phoenix Economic Council (GPEC) launched the #CAStruggles campaign to attract high-tech companies. The campaign has 24 vehicles with “visit TimeToGetOut.io” mobile billboards that will “flood major Silicon Valley corridors.” The website promotes the Greater Phoenix area as a location of choice for both businesses and individuals, boasting a variety of benefits like a lower median home cost, lower corporate income tax, and lower top individual income tax rate. According to GPEC, the spiraling cost of living is one key factor driving people away from California, and the housing issue is the most pressing for the state.
The migration of California businesses to Arizona has brought more than 18,000 jobs and more than $9 billion in capital, the governor’s office reports. But companies aren’t the only ones moving to Arizona. In 2017 alone, 60,000 Californians moved to Arizona and put their talents to use in a place where they can afford a home, have less than a 30-minute commute to work, and enjoy over 300 days of warm weather and sunshine per year. According to an Arizona vs California comparison study made by The Greater Phoenix Economic Council (GPEC), the median home cost in Phoenix is $256,000 compared to $954,100 in San Francisco (Bay Area); Corporate income in Arizona is 4.90% compared to 8.84% in California; and Arizona’s top individual income tax rate is 4.54% compared to California’s 13.30%. From downtown living in the area’s urban centers that offer vibrant arts and culture to thriving suburban neighborhoods with plenty of room to raise a family to incredible weather and diverse geography, Arizona's Phoenix metro area is a highly attractive place to live.
As a result of the influx of new businesses and people choosing to move to Phoenix and the East Valley, the real estate market continues to remain strong. Phoenix and East Valley property values and home prices in the communities of Chandler, Gilbert, Queen Creek, Tempe, and Mesa have been steadily on the rise, making it the perfect time to invest in area real estate and take advantage of still-affordable homes. Whether you’re in the market for low-maintenance condos/townhomes, entry-level market-rate homes, new construction homes, upscale homes in exclusive golf course and waterfront communities or sprawling luxury estates with breathtaking views, real estate in Phoenix and the East Valley accommodates every lifestyle and buyer - making it easy for families to move here and enjoy exceptional living.
Cathy Carter is a luxury home specialist and a top REALTOR® in Phoenix and the East Valley with over two decades of experience assisting buyers and sellers. Uniquely qualified, Cathy knows the local market inside and out and has all the resources and information you need for making the best home purchase decision. She can help educate you about the different communities in Phoenix and the East Valley, the types of home and features offered, the best schools, area amenities, property values, and so much more. In order to ensure that her buyers get the most value for their money, Cathy will evaluate the prices of homes that are currently on the market and those that have sold in recent months to determine whether a seller’s asking price is in line with market data. She keeps her finger on the pulse of the local economy, community trends, business developments and other factors that can affect the market value of property in the area.
If you are planning on moving to the Phoenix metro area from another part of the state or beyond, Cathy would love to speak with you to discuss the type of home you have in mind and answer any questions you may have about living in the world-class city of Phoenix or the vibrant East Valley communities of Chandler, Gilbert, Queen Creek, Tempe or Mesa. Feel free to call Cathy directly at (480) 459-8488 or get in touch with her here.
CATHY CARTER, ABR, CRS, CDPE
RE/MAX Alliance Group
725 W. Elliot Rd., Suite 111
Gilbert, AZ. 85233