Arizona is Slow to Grow

Arizona is Slow to Grow

Arizona has a lot to offer many people – great weather, affordable home prices, and a lot of great scenery – but it might not be the ideal place to move to right now.  We’re not saying it is a terrible place to live, but if you want to relocate to a state that has a booming economy, plenty of jobs, and a lot of promise, Arizona just isn’t it this year.

In fact, Arizona is one of the ten slowest growing states in the United States, according to several studies conducted by Newsweek magazine for 2010.

A few year ago, Arizona was actually one of the best states to move to – lots of jobs, great prices on houses, and a steady economy overall.  However, when the housing bubble burst, Arizona all but went bust itself.  Leading up to the housing crisis, Arizona had a booming housing sector.  In fact, it was one of the main driving forces behind the state’s economic growth.

Most of the growth in Arizona’s housing sector was in the immediate areas of Tucson and Phoenix – two of the largest cities in the state.  But, when the housing market collapsed, all industries throughout Arizona suffered.  Many homeowners lost their homes and were forced to relocate.  Some builders simply stopped building, so people lost money that way as well.

While Arizona certainly isn’t the slowest growing state in our country, it is one of the slowest.  The real estate and construction sectors did continue to contract throughout 2010, but not by much.  The state’s economy barely moved as it grew only 0.7% over the year.  The state GDP is at about $229 billion.

Jon Huser