Affordable Living in the Phoenix Metro Area: A Guide for Maricopa Graduates

If you’ve recently completed a course here at Maricopa Community College or you’re soon to graduate, your next logical step might be to find work and somewhere to live in the Phoenix metropolitan area. But, with current market conditions, finding somewhere that’s affordable can prove quite the challenge.

As you strive to strike the right balance between cost, location, and quality of life, you might have to make a few compromises here and there. However, with some understanding of how the housing market works in metro areas and learning more about how affordable doesn’t always mean low quality, you can snag somewhere you can be proud to call home.

With that in mind, this guide will give you the inside track to score the best property for your budget.

Understanding the Housing Market in Metropolitan Areas (Including Phoenix)

As you begin the search for your new home, it’s vital to understand the market dynamics of your chosen city. Take Phoenix, for example. Here, there’s high demand and relatively low housing availability. It’s estimated that the population and workforce of the Phoenix Metro Area need 2,002,386 housing units, and currently, there are only 1,943,813 units, leaving a shortfall of 58,573.

The shortfall just underscores how competitive the market is here and why you need to be well-prepared in your search for a place to call home.

So, how do you go about arming yourself with the necessary information? An excellent place to start is with the most popular property sites (such as Zillow), and the property sections of local news outlets (both online and offline) can give you an idea of the more affordable locations that still deliver on your specific wants and needs.

It will also help you understand what drives the value of specific homes in specific locations, whether it’s proximity to employment hubs, good schools, or dining and entertainment options.

Once you’re clued up with information, you can start narrowing down where you can afford to live without putting unnecessary financial pressure on yourself and your loved ones.

Housing Options for Graduates in Phoenix

Urban locales have plenty of different options for those on a specific budget. Each has its own advantages and drawbacks. So, let’s quickly run down some of the most popular options.

Apartments

Apartments offer the promise of central locations and lower initial costs, making them attractive to graduates like you. But annual rent increases can often be steep. To give you some idea, since 2019, apartment rent has increased by 38% in the Phoenix Metro Area*. You have the benefit of not being tied in too long, but you have to contend with the uncertainty of lease renewals and forced moves.

Shared Housing

Another option explored by those just getting their feet under the housing table is shared housing or “co-living” spaces. The clear advantage here is that monthly payments are often lower by splitting housing bills between more people. But that does come at a significant cost. You can wave goodbye to having any considerable degree of personal privacy, and if you don’t get along with one of your housemates, your living experience could quickly sour.

New Construction Homes

Another option is pursuing a new construction home. While the upfront cost is obviously higher, they offer several long-term financial benefits. Firstly, they are popular with lenders (since they are built to the latest building codes and standards) and qualify for numerous federal and state-backed home-financing programs and grants. Your monthly payment could often be lower than rent on an equivalent property. Moreover, rather than making endless payments to a landlord, you build equity and have a space that’s truly your own.

So, let’s quickly delve deeper into the specific advantages of new construction homes, an increasingly appealing option for graduates looking for a permanent place to settle in Phoenix.

New Construction Homes: A Smart Choice in Phoenix Metro

If you’re looking for a long-term solution that operates at the intersection of affordability and quality, then you might want to check out new construction homes in Phoenix. Leading home builders offer residences with the perfect blend of cost-effectiveness and high quality. Yes, the upfront cost is higher than renting an apartment, but the advantages might significantly outweigh that initial drawback.

Take Arizona home builder LGI Homes as an example. They offer upgrades as standard (everything is included in the sale price), so you can benefit from Whirlpool® appliances, high-end finishes, double-car garages, and smart home technology for one price. There is no need for any outlays post-purchase. You just move in your belongings, and you’re all set.

But the benefits are far from over. For instance, utility bills on brand-new homes are often a fraction of older properties since they’re built to the latest construction standards and are incredibly well-insulated. Again, because they are so well-built, they are favored by lenders and automatically qualify for a range of federal and state-backed loan and grant programs aimed at first-time buyers.

So, while you might have thought that home ownership was beyond you, think again. With a healthy credit score and modest savings, you can surprise yourself with what you can afford. As mentioned, once your favorable loans, interest rates, and grants have been factored in, you could be paying less than you would be in rent while enjoying the benefits of being a homeowner.

Embracing Homeownership in Phoenix Metro

Embarking on your post-graduate journey is no doubt an exciting but daunting time. As you search for employment and a place to live, just bear in mind that there are indeed affordable options in the Phoenix Metro Area despite the stiff competition.

We’ve discussed various options, but new construction homes stand out as an excellent choice for young professionals. Combining affordability with quality, these homes offer a solid foundation not just for today, but can provide you with stability for years to come.

So, don’t be afraid to at least explore the possibilities of homeownership, and certainly don’t dismiss it as unattainable at this early stage. With the right approach and resources, you can confidently navigate the housing market and find a place that fits your budget and enriches your life. Good luck!