Reasons Why Homes are So Cheap in Kingman, AZ
Kingman, Arizona, nestled in Mohave County, is well-known for its budget-friendly real estate market, offering a sharp contrast to regions in the United States where home values have reached nearly unattainable heights. The reasonably priced homes in Kingman make it an attractive option for those aiming to become homeowners without stretching their budgets. Especially when you consider the median price of homes in Arizona as a whole is $421,361. However, a variety of factors affect these low prices.
This article discusses the top 10 reasons why homes are so cheap in Kingman, Arizona. If you are on a budget and thinking about moving to this city, the information provided below will assist you in making your decision.
10. Lower Demand Due to Remoteness
Kingman, in comparison to vibrant urban centers in Arizona like Phoenix or Tucson, is relatively isolated. Its remote setting diminishes the overall demand for homes, consequently lowering their prices. Some may enjoy the peace, but others may be put off by the distance from larger cities and their amenities.
This geographical remoteness reduces employment opportunities in various industries, a major factor when choosing a home or investment. The reduced demand due to its isolated location significantly impacts the real estate market, rendering homes more affordable.
9. Reduced Cost of Living
The cost of living in Kingman is significantly lower than in other regions of the state. Everything from groceries to healthcare and utilities comes at a more affordable price. This reduced cost of living consequently is one of the reasons why homes are so cheap in Kingman.
It creates a cyclical effect where low-income people move in, and the real estate market adjusts to their needs. While this affordability may not be a draw for affluent individuals or growing families seeking lucrative job prospects or upscale amenities, it caters well to retirees and those on a tight budget.
8. Ageing Population
Kingman has a significant proportion of retirees and an ageing population. This demographic trend often contributes to a more relaxed and slower-paced lifestyle, which might not be attractive to younger individuals or families. Many affordable retiree housing options are available in the real estate market.
Nevertheless, the limited influx of younger residents, who typically stimulate housing demand and prices, prevents the real estate market from undergoing the kind of cost escalation observed in cities with a more diverse demographic makeup.
7. Limited Employment Opportunities
The Kingman job market is less diverse and robust than those in larger cities. The limited employment opportunities can discourage individuals seeking career advancement, leading them to choose areas with more promising job prospects, even if it means paying higher prices for homes.
Kingman’s economy is less dynamic, and this, in turn, affects the level of interest and, ultimately, the pricing of homes. While this may not be a concern for retirees or those with established remote careers, for others, the employment situation in Kingman directly influences their housing decisions.
6. Lesser Median Income
The median income in Kingman is lower in comparison to other cities in Arizona. This financial aspect plays a pivotal role in housing affordability. When the majority of residents have modest incomes, home prices adjust to correspond with what people can reasonably afford. It’s a straightforward yet impactful economic principle: the real estate market adapts to the local economy’s purchasing power.
The lower median income keeps homes affordable for most residents, keeping real estate market prices low. This factor, while preserving affordability, also portrays a community where high-paying jobs and rapid career advancement opportunities may be limited, which could discourage individuals with greater earning potential from settling in Kingman.
5. Smaller Population
The population of Kingman is relatively small, resulting in less competition for housing. In larger cities, a higher population often drives up home values due to increased demand. However, in Kingman, the demand for housing remains moderate due to its smaller population.
This limited demand ensures that housing prices do not skyrocket. Moreover, a smaller population often signifies a more leisurely pace of life, which may not appeal to everyone, particularly those accustomed to the vitality and opportunities found in larger cities. Kingman’s real estate market reflects its demographics, with a smaller population lowering demand and house prices.
4. Fewer Luxury Amenities
Kingman doesn’t feature the high-end amenities or luxury living conditions often found in some other cities. The lack of luxury housing, shopping centers, fine dining, and other amenities found in larger urban areas lowers property prices. In addition, housing is more practical and less luxurious, catering to the majority rather than the wealthy few.
This absence of luxury amenities not only keeps home values at a reasonable level but also attracts a demographic that values a simpler, more cost-effective living environment. This is a similar reason as to why Tudor City is so cheap. While some might view this as a drawback, others may see it as a positive aspect of Kingman, where the emphasis is on affordability and practical living rather than luxury and extravagance.
3. Affordable Land and Construction Costs
Kingman’s housing costs are lower than in other Arizona cities because the land is cheaper. In addition to the more affordable land prices, construction costs are also more moderate. The relatively low cost of building or buying homes is a direct result of these lower expenses. This financial advantage extends to homeowners and investors who find it more cost-effective to invest in real estate in Kingman.
The affordability factor is even more pronounced when considering the soaring land and construction costs in other regions, making Kingman an attractive option for budget-conscious buyers.
2. Limited Economic Diversity
Kingman’s economy lacks the diversity found in larger cities, leading to a more one-dimensional economic structure with limited high-paying job opportunities in various sectors. This limited economic variety results in lower housing demand and, in turn, more affordable property prices.
While specific industries do offer job opportunities, the absence of a broader economic base can discourage individuals seeking a wider range of employment prospects from considering Kingman. This economy is reflected in the real estate market, where interest and property values remain low and match local financial capabilities.
1. Proximity to Less Desirable Features
The primary reason behind the more affordable housing prices in Kingman is its close proximity to less attractive features, including industrial areas, and the existence of older infrastructure. Being near industrial zones can raise concerns about pollution and noise, which can discourage potential buyers.
Moreover, the older infrastructure in certain parts of Kingman might not appeal to those accustomed to modern urban environments. These factors collectively reduce interest in housing, resulting in more budget-friendly housing values in Kingman when compared to other regions.
Conclusion
The array of factors that contribute to Kingman, Arizona’s affordable real estate market, paints a clear picture of why this area distinguishes itself as a cost-effective choice for home-buyers and investors. Geographically and economically, Kingman’s real estate market is shaped by its remote location, affordable land and construction, less diversified economy, and proximity to less desirable features.
Although it may not offer the luxurious amenities or abundant job opportunities seen in larger urban hubs, many find Kingman’s affordability and slower pace of life to be its most appealing features. By comprehending the factors discussed, you can make an educated decision about whether Kingman’s real estate market aligns with your personal and financial objectives. You can also use this guide to estimate how much your move to Kingman would cost and start preparing for your big change.
Hudspeth, Texas, is another place where you can buy cheap homes.
