The Arizona Multihousing Association recently hosted a successful Perspectives & Projections event, exploring Arizona’s economic and housing growth. Held at the Renaissance Phoenix Downtown, the event was sold out, with industry leaders providing optimistic predictions for the housing market’s future.
Kimberly Byrum of Zonda Advisory noted that with interest rates set to decline, banks are more open to lending, keeping occupancy rates steady at around 93%. Despite a high supply of apartments, Byrum anticipates rents will stabilize or decrease slightly. The Phoenix area continues to absorb new units added to the market.
From a developer’s perspective, John Hartman of NexMetro Communities highlighted 40,000 units underway, with 20,000 in the West Valley alone. Owen Metz of Dominium emphasized the need for more diverse and dense housing to meet affordability demands.
John Carlson of Mark-Taylor Residential spoke of municipal challenges, pointing out that navigating zoning can cost developers up to half a million dollars, with fewer than 60% of projects reaching approval.
One notable update is Arizona’s new law permitting underutilized commercial developments to be converted into residential housing. Backed by the AMA, this change could create 150,000 new housing units.
Conor Devereaux of Costar observed that Phoenix rental prices remain a bargain compared to other metropolitan areas, with Pinal County showing promise as a growing affordable area. Arizona’s economy, now supported by the tech and semiconductor industries, has diversified significantly since the Great Recession.
To close, AMA lobbyist Steve Kaiser moderated a panel of political experts who discussed Arizona’s political landscape. Pollster Mike Noble noted that Arizona remains a “purple” state, with a close presidential race anticipated between Donald Trump and Kamala Harris. However, Noble expects Democrat Ruben Gallego to lead Republican Kari Lake in the Senate race, aided by a strong financial position.
With political and economic factors at play, experts agree Arizona’s housing market should remain robust through 2025, making the state’s future one of growth and opportunity.