7 Worst Arizona Cities To Buy Property Over the Next 5 Years, According to Real Estate Agents
Written by
J. Arky
Edited by
Molly Sullivan
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Arizona is nicknamed “The Grand Canyon State,” however, “grand” cannot be applied to every city within its borders. For all the beautiful desert vistas and red rock landscapes, there are a few cities that are likely cold markets to buy real estate in from now through 2029. If you are looking to purchase some property in Arizona, you’ll want to avoid these cities.
GOBankingRates got in touch with a few real estate agents to find out what the worst cities in Arizona are to buy property over the next five years. Here are the locations that made the list.
Yuma
- Average Home Value: $294,362
“Yuma’s [home value] … is relatively low compared to other cities in Arizona,” said Itay Simchi, the founder of Proven House Buyers.
“However, the city’s struggling economy and high crime rates make it a less attractive investment opportunity,” Simchi continued.
Simchi pointed to a set of data from the FBI, which showed that Yuma had a violent crime rate of 76.4 per 10,000 residents in 2022. Additionally, the city’s population has been declining since 2020, with a 1.5% decrease in population.
Paradise Valley
- Average Home Value: $3,522,830
Paradise Valley is home to the wealthy and where you have to be wealthy to afford a home.
“The market caters to ultra-high-net-worth individuals, which can be risky if the economy takes a downturn,” according to Colten Claus, an associate broker with 8z Real Estate. “Luxury markets are often the first to suffer in economic downturns, leading to price drops.”
This also means that the buyer pool is extremely limited. As Claus described: “The high price point limits the number of potential buyers, making it harder to sell properties quickly.”
Prescott Valley
- Average Home Value: $463,913
Simchi cited that the city has a relatively low crime rate (2.3 violent crimes per 10,000 residents in 2022) and a growing population (1.8% increase between 2020 and 2022).
“However, Prescott Valley’s economy is heavily reliant on retail and tourism, which can be unpredictable,” Simchi said.
Sedona
- Average Home Value: $948,538
“Sedona’s property market is heavily driven by tourism, which can fluctuate and lead to unstable property values,” Claus said.
“Strict environmental regulations and limited land for development can restrict property growth and value appreciation,” Claus went on to explain.
To cap it all off, the entry costs are much higher than you might anticipate.
“High property prices make it difficult for investors to get a good return on investment,” Claus said.
Bullhead City
- Average Home Value: $308,786
When looking at other cities in Arizona, Bullhead City’s average value is on the lower side, according to Simchi.
“The city’s economy is driven by tourism and gaming, but it also has high crime rates (5.1 violent crimes per 10,000 residents in 2022),” Simchi said. “Additionally, Bullhead City’s population has been declining since 2020 (1.2% decrease).”
Kingman
- Average Home Value: $273,595
Simchi stated that Kingman’s average home value is one of the lowest in Arizona.
On top of that Simchi highlighted that Kingman has a relatively high crime rate (6.3 violent crimes per 10,000 residents in 2022) and an aging population (65+ years old).
“Kingman’s economy is struggling due to the decline of the Route 66 tourist industry,” Simchi said.
Sierra Vista
- Average Home Value: $294,804
When shopping around the rest of the state, Sierra Vista’s average home value of just under $300,000 clocks in much lower than a lot of other cities. The downside is that this Arizona city’s economy is heavily reliant on Fort Huachuca’s military base and defense contracts, but not much else.
“The city has a relatively high crime rate (4.5 violent crimes per 10,000 residents in 2022) and a declining population (1.1% decrease between 2020 and 2022),” Simchi shared.
“While these cities have their unique characteristics and attractions, they present significant challenges for real estate investors from now through 2029,” Simchi said.
“As a seasoned real estate investor with experience buying, rehabbing, designing, and selling houses in these areas, I would advise investors to look elsewhere for more promising opportunities,” Simchi suggested.
Average home values are according to Zillow and accurate as of July 15, 2024.
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