This article originally appeared in AZRE magazine.
The last decade has brought tremendous economic growth and prosperity to Arizona and its metropolitan areas. Lured by a supportive business climate and a high-quality workforce, businesses large and small have been flocking to the desert. One need only flip through the pages of this magazine to understand the scope of recent growth and economic activity.
This economic boom has had many profoundly positive impacts and has helped Arizona emerge from the pandemic with a strong tailwind. However, it has also exacerbated issues around housing affordability and availability. The recent rapid increase in home prices is not unique to Arizona, but it is uniquely acute. The Phoenix area, in particular, ranked first among all tracked major metropolitan areas with a year-over-year increase of 32.35%, according to the S&P CoreLogic Case-Schiller U.S. National Home Price Index. There are a number of factors that have contributed to this spike, ranging from supply chain constraints to an influx of new residents from pricier markets. At some point, these affordability challenges will begin to hinder our economic growth.
