Exploring Up-and-Coming Neighborhoods in Arizona

Real estate agents must keep their ears to the ground to learn about trending neighborhoods. Your clients – buyers, sellers, and investors - depend on you to know what areas are growing in popularity. We talked with two industry insiders about popular areas in and around Phoenix and Tucson. Here are some insights on Arizona's popular and up-and-coming neighborhoods, suburbs, and exurbs in 2024.

Phoenix Neighborhoods

Phoenix continues to draw in new residents from across the country with its beautiful sunny weather (with low humidity), lush golf courses, and jaw-dropping landscape. How do new residents find the right neighborhood in the 14,587 square miles of the Valley of the Sun? They seek the advice of a real estate agent. Here are some Phoenix metro neighborhoods to keep your eye on in 2024.

Arcadia Lite, Arizona

Arcadia Lite is a small, mid-century modern area located northeast of downtown Phoenix that is popular with young families. It features traditional ranch homes on oversized lots built in the 50s and 60s, which some buyers are opting to buy with the plan of tearing them down and building high-end custom homes on the property.

Factors Driving Neighborhood Growth

Arcadia Lite is popular because of its proximity to Arcadia, a popular area of Phoenix for decades. With tranquil mountain views and some of Arizona’s top-ranked schools, residents appreciate the look and amenities of Arcadia Lite. Residents also report a welcoming, friendly atmosphere and strong community spirit. There are also ample trails for families to enjoy, and the neighborhood hosts a kid-centric Independence Day Parade each year, allowing children to ride their red, white, and blue-decorated bikes and trikes while their neighbors line the streets.

Affordability and Housing Options

According to Redfin, the Arcadia Lite housing market is somewhat competitive. The median sale price of a home in Arcadia Lite was $1.2M last month, significantly higher than in previous years, and 13.9% of homes sold above the list price.

Real Estate Investment Potential

The increasing home values in Arcadia Lite present opportunities for capital appreciation in this community.

Sunnyslope, Arizona

Located “between the 7s” (between 7th Avenue and the 7th Street Corridor), you’ll find what some call an “underrated” community -- Sunnyslope. You can’t miss it – nearby Sunnyslope Mountain is marked with a giant white “S” that can be seen for miles. Sunnyslope comprises mostly small (studio to two-bedroom) to medium-sized (three or four-bedroom) single-family homes and apartment complexes.

Factors Driving Neighborhood Growth

Excellent schools are one factor driving the growth of Sunnyslope. Sunnyslope High School has a solid A rating from Niche. The area also has an abundance of mom-and-pop eateries (try the Mexican cuisine!). Additionally, Sunnyside has drawn in people with a creative spirit, which gives the region a unique, open feel.

Affordability and Housing Options

According to Redfin, the average home price in Sunnyslope is $380,000, with a somewhat competitive market. Sale prices have gone up 16.9% since last year.

Real Estate Investment Potential

Overall, Arizona presents an array of real estate investment opportunities. The high demand for housing and consistently increasing home values present opportunities for capital appreciation in Sunnyslope and throughout the Phoenix area.

San Tan Valley, Arizona

If your clients are willing to expand their search from central Phoenix, they might fall in love with newer homes in planned communities in San Tan Valley. It is located in the far east valley next to Queen Creek. San Tan Valley offers easy access to Phoenix, yet it boasts a rural atmosphere with breathtaking views.

Factors Driving Neighborhood Growth

Clients who yearn for a more rural lifestyle may love San Tan Valley. It’s a growing unincorporated community, and homes with larger lots are available. The area has age-restricted communities, golf course communities, and large single-family homes. Most of the San Tan Valley neighborhoods are modern. There is a low crime rate.

Affordability and Housing Options

The median sale price of homes in San Tan Valley is $424,990, an increase from the previous year.

Real Estate Investment Potential

By all indicators, San Tan Valley shows investment potential. The community is growing and hopes to be incorporated into a city, which will improve community services. There’s also been growth in residential property prices and rental prices. Of course, many other communities around Phoenix have exploded in recent years. Roosevelt Row (RoRo) may appeal to artsy homebuyers who want a downtown vibe. Garfield is a walkable community with a lot of bungalows and local restaurants. Finally, Chandler offers a range of house styles, from modern to historic.

Tucson

Tucson is known for having big-city amenities with a small-town feel. Nearby, Saguaro National Park offers excellent hiking trails. Tucson, one of the country's sunniest cities, has a wide variety of neighborhoods. With your help, your buyers are sure to find a location that suits them. Here are some of the popular and up-and-coming Tucson neighborhoods for 2024.

Vail, Arizona

Vail, Arizona, is southeast of Tucson and south of Saguaro National Park East. It’s a family-friendly suburb with plenty of wide-open spaces for spectacular sunset views.

Factors Driving Neighborhood Growth

Vail is a growing community that is attractive to young families. The Vail School District is highly rated, and the area is safe. At the same time, Vail is within a comfortable commuting distance from southeast Tucson. New residents of Vail are moving in from Washington, California, and Illinois – as well as from metro Tucson.

Affordability and Housing Options

The average price of a home for sale in Vail is around $440,000. There are plenty of newer suburban-style homes in Vail. However, properties with land are available for those wanting horses and room to roam.

Real Estate Investment Potential

Vail real estate checks off many of the boxes indicating investment potential. Vail’s population is growing, leading to increased demand for homes. Residential property prices are increasing, and rental prices are growing at a rate of 2.12% each year.

Oro Valley, Arizona

Oro Valley is a suburb north of Tucson that has been increasing in population over the last decade. It’s located at the base of the Santa Catalina Mountains and offers beautiful views. The area has a variety of single-family home types, including ranch-style homes and those with contemporary designs.

Factors Driving Neighborhood Growth

Oro Valley is home to over ten high-tech firms and has a median household income nearly 50% higher than the U.S. median. This safe, family-friendly community has excellent schools. Both young families and retirees like the quiet living found in Oro Valley.

Affordability and Housing Options

The median sale price of a home in Oro Valley is $475,000, and the market is somewhat competitive. The prices seem relatively steady – with 4.4% increases over the last year.

Real Estate Investment Potential

While home prices aren’t skyrocketing in Oro Valley, they are steadily climbing. In addition, rental properties in Oro Valley continue to be in demand.

Menlo Park, Arizona

You’ll find Menlo Park between downtown Tucson and the Santa Cruz River to the east and Sentinel Peak and Tumamoc Hill to the west. Sentinel Peak, or “A” Mountain, is a prominent local landmark. This historical area features homes in various architectural styles, including Spanish Colonial Revival, Craftsman bungalow, Prairie, post-World War II ranch, and midcentury modern. The population is primarily Hispanic.

Factors Driving Neighborhood Growth

Menlo Park is well-known for being a family community. You’ll find residents sitting on front porches watching families on bikes go by. It has an active neighborhood association (not a homeowner’s association) that aims to enact improvements on issues such as safety, beautification, and development.

Affordability and Housing Options

The median sale price of homes is $290,000, which has increased 13.2% year-over-year.

Real Estate Investment Potential

Most residents of Menlo Park are renters, with the average 2-bedroom apartment renting for $1,500 per month. There is real estate investment potential in Menlo Park as the area continues to attract young families. Keeping on top of neighborhood trends will help you better serve your clients, which could result in more word-of-mouth referrals. In short, a real estate agent’s salary is directly tied to how well they know the neighborhoods in their target area. For insider info on the Arizona real estate scene, check out the Arizona Real Estate Journal published by the Arizona School of Real Estate & Business. Each month, the Journal includes an article titled, "Greater Phoenix Residential Market,” which provides an in-depth look at sales stats for more than 30 cities in the region. ASREB is a trusted real estate education provider in Arizona. Whether you are just beginning your real estate career and need to take pre-licensing courses or have been serving as an agent and are ready to become a broker, ASREB can help. In fact, we are proud to report that we have the highest first-time pass rates in Arizona. Contact ASREB’s student services today to learn more. Source: Redfin. “Arizona Real Estate.” Redfin. Accessed February 22, 2024. https://www.redfin.com/state/Arizona.

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