By Mike Bodeen · 22 July 2019
I just finished reading an interesting analysis of the Phoenix Metro residential construction industry and the challenges it’s currently facing. The good news is that Maricopa County, being the fastest growing county in the nation, is creating the need for new employment across all facets of our communities.
Because of previous Phoenix market growth spurts and crashes, builders have justifiably been hesitant to take on more employees. They remember how many they had to lay off in the 2008-2010 era. It wasn’t pretty. Many builders folded, never to return. Tens of thousands of construction-related workers lost their jobs in Arizona. But that’s changing!
As mentioned in last weeks blog, “even if we don’t build it, they will still come.” And I don’t believe we’ve begun to see the immensity of our increasing population growth. Today, as in mid-July 100+ degree temps, is the only reason why millions more don’t consider living here. However, thousands upon thousands more are increasingly willing to tolerate our hellish summers.
Reasons for this increase? Let me count the ways:
Still affordable housing,
Low taxes (property AND state)
8 months of awesome weather (some of us actually think it’s 9-10 months)
Retirement friendly (hello golf, pickle-ball, and social interaction)
Business-wise, business friendly
Family friendly, (7 public High Schools in the nation’s top 35 out of 17,245)
Intelligent freeway system that actually moves and gets you somewhere on time
Shopping. Shopping. Shopping.
So, considering the need to expand housing, including residential and commercial, two of the major challenges are the rising cost of materials and the training and maintaining of a skilled workforce.
There’s not much we can do for rising material costs. But workers are different. The article mentioned various ways that these large established contractors are seeking out, training, and attempting to solve the skilled workforce issue here in Arizona. I think this is an incredible opportunity for our state to assist in developing our trades. And it’s been happening to a small degree. Perhaps it can enlarge. Allow me to pontificate.
Along Side Ministry, of which I’m a volunteer, is one of many local ministries attempting to help the homeless, drug addicts, the formerly incarcerated, ad infinitem get a decent foothold on life. In the prison system where our ministry serves, there is opportunity for inmates to learn electrical, HVAC, and other trades. Programs such as these can be increased to further train many more men and women who will likely be serving shortened sentences now and in the future to learn a trade, get viable work, and reverse life’s previous mistakes. It requires no college degree or tuition.
“…it sends a message that Arizona gives a rip for them. We may not let them set up tents on our city sidewalks, but we’ll help them with a job and housing.”
Also now, we’re going into places like the Maricopa Re-Entry-Center (MRC) to show the soon to be released that they if they can show a 1-2 year record of fiscal responsibility, pay rent and bills on time, they can actually buy a home with a miracle loan developed with their name on it – a mortgage with no down payment, no closing costs, no mortgage insurance and a rate 1/2% below the best conventional rate out there. Their FICO scores or non-credit are not the determinant. A loan like this actually makes it easier for the ex-incarcerated to buy a home compared to renting one. Another name we put on this is – HOPE.
Programs and possibilities like these benefit them and us. And it sends a message that Arizona gives a rip for them. We may not let them set up tents on our city sidewalks, but we’ll help them with a job and housing.
Now that’s a state I’m proud to call home. Even in summer.