Industry News

Arizona region grapples with housing affordability

Part 2: Phoenix rising: Life thrives in the desert

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Editor's note: The population in the Phoenix metro area has exploded over the past decade, with waves of new construction spilling into formerly rural communities. This two-part series examines the cause of this desert bloom and its effect on local real estate markets. (See Part 1.) New-home construction in the Phoenix area is analogous to the pink Energizer bunny's incessant drumming. "It never really has slowed down," said Michael Chasse, a home builder specialist with the Land Advisors Organization, a land brokerage company. "Since 1992 every year has been an increase from the prior year. We have been on a constant run. There are some who think that perhaps the market may fall off a little bit. Others think it will continue to drive forward." Residential building activity is a major economic driver for the region and state. But home prices in the Phoenix metro area have been marching up at the fastest pace in the country, outpacing income growth and forcing affordability issues to ...