By Mike Bodeen · 15 March 2021
Common sense tells us that our blistering Phoenix Metro housing market must begin to cool. And of course, it will. All markets do. The questions of when, how much, why it will, and what it will look like are the questions we’d love to have the proverbial crystal ball to see into.
Since we don’t have that crystal ball, we instead need to lean on facts as we view them, to determine (guess?) where we’re heading. Some of these “facts” could be the rise of mortgage rates, which is occurring as I write. Inflationary trends, especially the cost of oil which is, coincidentally, rising as I write. That will tend to lower demand by reducing affordability, especially on the lower end of our price scale.
One thing, however, does seem apparent about the demand factor for Phoenix housing – it ain’t stoppin!
Rather than explain this, the best way is to give you links to articles we read about almost everyday about companies relocating to the Valley and the amount of jobs they create. Warm weather is great. Our retirement markets are attractive. But diversified commerce is the engine driving this train. Here are but a fraction of our growth stories:
Manufacturing: $35 Billion Invested in North Phoenix Wafer Plant
Taiwan Semiconductor Manufacturing Company purchased at state auction 1128 acres. Their plan was to spend $12 Billion dollars on a new fab (computer chip wafers) manufacturing plant adjacent to the Carefree Highway south to the newly formed Hwy #303 (see map in article). Low and behold, the most recent news report from the Phoenix Business Journal shows the new plant to be $35 Billion – almost thrice the original price. Thousands of new higher paying jobs will be created from this venture. 1000 engineers alone will be ultimately employed here. See article here.
Bioscience: Growth of Biosciences
According to this Business Journal article, “The Bioscience sector in Phoenix is heating up and the world is taking notice, as exclusive licensing agreements are forged, lab space is being built and medical schools are expanding. Construction is underway or about to begin in Phoenix on bioscience health facilities with a capital value of more than $3 billion, according to data compiled by Phoenix Community and Economic Development. More than 7,000 new bioscience health care jobs will be created in Phoenix during this time.” See article here.
Health Care: Mayo Clinic Expansion
The Mayo Clinic, which already has 2-4 high-rise cranes on its North Phoenix campus expansion, is now planning to build a $131 Million dollar education and research building at the same location. This expansion will “double” the size of the existing hospital and will create nearly 2000 new jobs. See article here.
Behavioral Health company relocating from Bellevue, WA to Scottsdale
Lifestance, an outpatient behavioral health care provider is moving it corporate headquarters from Bellevue to Scottsdale, having leased 20,000 square feet of space at 4800 N. Scottsdale Rd, opening in early summer. Though currently not known how many employees will be employed in Scottsdale, the firm employs more than 3,000 psychiatrists, advance practice nurses, psychologists and therapists. See article here.
National Recognition:
Phoenix is among the top cities best poised for economic recovery in 2021, according to Milken Institute’s Best Performing Cities report. The report states that Phoenix’s assets include strong population and employment growth, and a diversifying technology industry in the region. See article here.