Phoenix remains in the top ten of cities nationally building the most homes, according to a new industry survey, having completed just under 47,300 units last year.
The survey, compiled by the San Diego-based data analysis company Construction Coverage, includes home building activity in Mesa and Chandler in its overall metro Phoenix profile, noting that the area heading into this year also saw a median home price of just over $446,000.
Despite the strong numbers coming out of metro Phoenix, new home building nationally, says a narrative accompanying the survey, remains markedly down: “The lack of housing supply has been exacerbated by significant underinvestment in new housing since the Great Recession.”
And even though such activity picked up during the immediate years of the pandemic, “as of June 2023, new authorizations declined 26% after peaking in December 2021.”
The narrative adds that a combination of inflated construction costs and elevated mortgage interest rates, “produced 12 straight monthly declines in builder confidence during 2022.”
The latest total number of new units for metro Phoenix represents an increase over 2020, when the figures stood at 35,400. The area’s home asking price, representing the ever-increasing popularity of moving to and living in southern Arizona, is also significantly up over 2020 when that average stood just below $278,000.
Arizona in general, meanwhile, according to the survey, is among the top 15 states in terms of new home building, a pattern typical of industry trends in the West.
Such “fast-growing states,” notes the narrative, “are moving faster than others in authorizing new construction.”
“At the local level,” the narrative continues, “major metros in these fast-growing states are also among those leading in new home construction.”
Not only are the largest metro areas in the West in the forefront of new home construction, but such construction in the West’s mid-sized cities has also set a national pace, with Greeley, Colorado; Orem, Utah; and Boise City, Idaho; among the top ten locations nationally.
By Garry Boulard
