In the market to purchase a new home? A recent census data results have named the best and worst places to buy a home in Arizona.
What made the best investment-wise location in all of Arizona? Apache Junction came out as the best city in Arizona to buy a home.
When searching for a home, figuring out whether to rent or buy can be a tough decision. Many factors come into consideration and the timing of the housing market can be difficult. However, there are mathematical methods to evaluate each city you are considering, so the home buyer can make a complete and informed decision.
UnitedStatesZipCodes.org recently released the 50 best and worst Zip Codes to buy a home in Arizona.
Based on the latest Census Bureau data for cities with a population of 60,000 or more, the rankings were determined by calculating the price to rent ratio.
The price to rent ratio is the median home value divided by the median annual rent and serves as a benchmark for understanding if it is better to rent or buy in a particular area.
When home prices rise significantly faster than the local rents, the ratio will rise, which is a strong indication of a possible housing bubble and in that specific location, it may be better to rent.
The result findings are if the ratio is under 15, it indicates that it is likely more affordable to buy. If the ratio is over 20, it is likely better to rent.
Here are the top 5 best places to buy:
- 85120 (Apache Junction, AZ) – 8.8
- 86045 (Tuba City, AZ) – 9.8
- 86054 (Shonto, AZ) – 10.8
- 85705 (Tucson, AZ) – 10.8
- 85009 (Phoenix, AZ) – 10.9
Here are the top five worst neighborhoods to buy:
- 85253 (Paradise Valley, AZ) – 82.0
- 86520 (Blue Gap, AZ) – 50.1
- 85259 (Scottsdale, AZ) – 49.3
- 85718 (Tucson, AZ) – 47.7
- 85018 (Phoenix, AZ) – 45.5
Click here to look at the complete list.