Arizona real estate is expensive, but that’s why the state has been able to get by with just under one million people per household in the last year, according to a report released Monday by the Real Estate Institute of Arizona.
Arizona ranks No. 2 in the nation in median home prices, behind only Texas, according the report, which found median prices in the state are just under $100,000.
The median home price for a median-priced home in the county is just over $150,000, the report found.
The median home value in the metro area was $7.9 million in July 2018, according, and the median house price in Phoenix was just under nearly $250,000 in the same period.
The report also found that median home sales are on pace to surpass the total number of sales for the past 10 years, and that home prices are set to rise by more than 5 percent from their current levels by the end of 2018.
The average home price in Arizona is set to increase 5.2 percent in the next five years, the Real Deal reported.
Real Estate Institute officials say that Arizona’s strong economic growth has led to the state’s low population density.
While Arizona’s population density is slightly lower than the national average, it still has more than half the people of the states population density compared to Texas, which has about 4.7 million people.
But the report notes that Arizona has the third highest per capita cost of living in the country, behind California and Florida, while Arizona’s median home cost is the lowest of the top 10 states.
According to the report’s authors, Arizona’s low cost of life is the reason it has seen a rise in the number of families purchasing a home since 2000, with more than a quarter of families spending more than $1 million to buy a home.
“The combination of these factors is why median house prices in Arizona are rising at a much faster pace than the overall national average,” said Ben Siegel, the RIAA’s president and CEO.
“It is an encouraging sign for the future of Arizona realtors and the state of Arizona, and our efforts are to keep them there.”