Builders in Arizona are trying to recalibrate projects in the wake of an announcement made by Governor Katie Hobbs that regulators will not be approving new home building in one of the fastest-growing metro areas in the country.
The new stricture pertains only to new developments in and around Phoenix that rely on only groundwater supplies.
The Governor’s announcement comes as metro Phoenix continues to enjoy an unprecedented population boom of around 3.5% in the last three years, for a total population now of more than 5 million.
Referencing a new study conducted by the Arizona Department of Water Resources indicating that metro Phoenix may not have enough groundwater to support current development forecasts, Hobbs remarked: “If we do nothing, we could face a 4% shortfall in groundwater supplies over the next 100 years.”
The Governor said the ruling will not impact projects that are already in the building stage.
What happens next for builders is anyone’s guess. Spencer Kamps, vice president of the Home Builders Association of Central Arizona, noted that even though home builders have in recent years built houses substantially increasing water efficiency, “We’re the only one that ultimately is stopped when groundwater issues arise.”
Kamps, as quoted by the Reuters news service, also specifically noted that the new ruling does not impact commercial or industrial development.
According to Kathryn Sorenson, research director at Arizona Stat University’s Center for Water Policy, developers may now be in the process of deciding whether to buy land for projects that are in the planning stage.
In so doing, Sorenson told the Orange County Register, those builders may “incur the cost developing a whole new water supply.”
By Garry Boulard
