By Jonathan Bodeen · 16 April 2019
THE PHOENIX NEW HOME INDUSTRY BOOMS
Sorry for the delay folks. My dad and I were both running around showing properties all day yesterday, which of course is a good problem. But we will never forget our faithful readers!
It’s hard not to notice all the changes happening in our fair city. From freeway expansions and overpass redos to new commercial projects breaking ground, the cacophony of power tools clouds the air. Maybe that’s a bit of an exaggeration, but you can’t argue with the sense that Phoenix and the whole valley are on the way up.
Of course, residential home building is a big part of this. If you haven’t seen myriads of new home builders sign crowing the outskirts of the city, you either aren’t getting out much or you should stop looking at your phone while driving!
Probably the best way we have of predicting future growth, at least for the near future, is measuring the volume of building permits. Last year was a good year for the number of new permits, but January had us worried. There seemed to be some hesitancy from builders in January. Maybe it was the government shutdown, which was taking place at that time, or maybe it was just a fluke. Either way, February made such a strong comeback that now our 12-month rolling average for permits is up 14% from last year! This is also the highest level since 2008!
This is good news for a city that has been suffering from a chronic lack of supply in the housing department for several years. Though there does not seem to be an end in site either, since even the high rate of home building is not making up for our net population growth.
It’s also good news for a metro area where the housing industry has been the foundation of its’ economy for decades. And luckily for Arizona, this is changing! Recent years have shown a trend where new and varied industries are seeing Arizona as a good place to move to. The more varied and diverse are industries become, the more sustainable our economic health will be.