By Mike Bodeen · 1 November 2021
Nationally, there is a shortage of homes for sale and rent – and in Phoenix, the need is particularly acute! This comes as no surprise to our readership, but to hear it again recently from a local economist makes it is all the more impactful. It has become imperative for state and local authorities and institutions to put their collective heads together to offer solutions.
Elliott Pollack, founder of Scottsdale-based Elliott D. Pollack and Company said recently that Phoenix has an estimated shortage of 25,000 single family homes and 15,000 apartment units, on top of what is needed to keep up with normal population growth.
I made bold that last sentence for emphasis, considering that each month we’re falling more behind in our need for housing.
In his words, he said that Phoenix “…is about to hit the skids on affordability.” He said that Phoenix has more jobs now than it did before the pandemic, and that Phoenix Metro has recovered 102.6% of jobs since April 2020. Read the article here.
Personally, I think we’re already “in the skid.”
Pollack was quoted as saying that the obvious remedy is ‘to build more units.’ Large scale developers are taking notice of this housing shortage and among a number of developments in the works, the largest is one known as Douglas Ranch in the West Valley. A recent article in the Business Journal reported that the Howard Hughes Corporation just paid $600 Million for the proposed 37,000 acre master plan community. That would be 58 square miles – about the size of Glendale, AZ. It’s expected to have 100,000 homes and 300,000 residents. The first phase of this mega community, known as Trillium, begins construction in early 2022. Read that article here.
The other side of this dilemma is the question that’s emerging in various corners about the quantity of resources available for growth, specifically, water. But that’s a topic for a future snapshot.
See you next week!