| Source:
The City of Phoenix Community and Economic
Development Department, and the United
States Census Bureau
ARIZONA
FEBRUARY 2006
Population Forecast
According to the
Arizona Blue Chip Economic Outlook,
Arizona’s population is anticipated to reach
11 million by 2030. As of July 2004,
Arizona’s population was estimated at 5.7
million. Arizona has been the second
fastest-growing state in the United States
for the past six years and has, during that
time, grown twice as fast as the national
average. The population of Arizona increased
by 40% from 1990 to 2000 or 1.5 million
people and by a further 12% from April 2000
to July 2004.
(Source: United States Census
Bureau 2004, Bank One Arizona Blue Chip
Economic Forecast)
Housing
According to the
National Association of Home Builders (NAHB),
in 2004 the Phoenix-Mesa metropolitan
statistical area (MSA), issued over 59,000
building permits for single-family
residences, making it the highest ranked MSA
in terms of single family residences in the
United States. As of September 2005, the
NAHB estimated that the state of Arizona
issued over 63,000 single-family residence
permits with over 42,000 coming from the
Phoenix-Mesa MSA.
(Source: National
Association of Home Builders, as of November
17, 2005)
Employment
Phoenix ranks as the
6th best large city for doing business
according to Inc. Magazine’s article “The
Best Places for Doing Business in America
2005” (May 2005). The ranking is based on
current and historical job growth. The
article assumes that “small businesses
produce up to 80% of new jobs” and that
regions which show strong job growth are
also prone to have an increased amount of
entrepreneurial activity. Strong job growth
suggests that a region’s economy is
expanding. The ranking was derived from the
current-year employment growth of 274 MSA’s,
as well as the average annual job growth
over the past three years.
(Source: Eller College of
Management, Phoenix Ranks 6th Best Large
City for Doing Business, September 1, 2005)
Net Migration
In the 1990’s
Arizona’s population grew by 40%, 65%
percent of which came from another state or
outside of the United States. Factors that
attract newcomers to Arizona, particularly
retirees, include relatively low taxes
(Arizona’s corporate income tax is
approximately 6.9%), affordable housing in
relation to adjacent states such as
California, warm and hospitable environment
compared to cooler regions, quality health
care and outdoor recreational opportunities.
The numbers of people moving to Arizona are
expected to increase as upwardly-mobile Baby
Boomers begin to retire.
(Source: U.S. Department
of Commerce, Economics and Statistics
Administration, Bureau of the Census (2000),
Eller College of Management, Surging Tax
Revenues WILL SOON RECEDE, September 1,
2005).
Arizona Trading Partners
Arizona is
strategically located in the CANAMEX
Corridor, providing easy access to Canadian
and Mexican markets as well as markets along
the western coast of the United States. In
2004, Arizona exported over $3.8 billion
worth of products to Mexico, making it
Arizona’s number one export market. In 2004,
Arizona exported over $1.4 billion worth of
products to Canada, making it Arizona’s
second largest export market.
(Source: Arizona
Department of Commerce, International
Business, as of November 17, 2005)
ARIZONA
UPDATE July 2005
The State
of Arizona
Arizona has been
the second fastest-growing state for the
past 6 years:
- Twice as fast as
the national average
- 65% of this
growth is migration from other states or
from outside the U.S.
- Land is rapidly
being developed for urban purposes
- Cost of living is
below the national average
- CANAMEX Corridor
“The Golden Corridor” provides servicing
country-wide via truck with
- 24-48 hours
Arizona also has a
business friendly tax environment:
- No Corporate
Finance Tax
- Corporate Income
Tax rate of 6.6968%
- No income tax on
dividends from out-of-state subsidiaries
- Emerging
high-tech and service industry
- Source: United
States Census Bureau, The Arizona
Department of Commerce
The Greater Phoenix Area
The Greater Phoenix
Area ranked first by the U.S. Census Bureau
in new housing markets across the nation in
2004.
- The average new
home price in the greater Phoenix area
is $238,651 (12% higher than last year)
- Housing starts
grew by 88% from 1994 to 2004 reaching
over 65,000 per year
- Unemployment rate
of 4.1%, is below the national average
of 5.5%
- S&P Bond rating
of AA+
- Phoenix Sky
Harbor International Airport is the
fifth busiest in the world for take-offs
and landings in 2004
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