Arizona’s Booming Real Estate Market: Key Developments and Opportunities in 2024

by Eric Ravenscroft

Arizona is booming with new construction, thriving industries, and a healthy job market. Homebuilders are ramping up efforts across metro Phoenix, creating an opportune time for homebuyers and investors. From major land acquisitions to master-planned communities, the region is bustling with strategic developments. Key areas like the TSMC plant in north Phoenix are driving significant demand for housing, supported by infrastructure improvements and economic growth initiatives.

The state's tech sector is also thriving, leading the Southwest in job growth and attracting major investments from companies like Intel and TSMC. Developments such as the $150 million Peoria Airpark and significant infrastructure upgrades are paving the way for continued growth. Let's dive into some of the recent developments in the region.

The State of the Market

According to R.L. Brown Housing Reports, 2023 saw 1,053 land transactions involving 30,617 acres and 14,194 lots purchased in Maricopa and Pinal counties. While this is a decrease from the previous year's 1,442 transactions over 47,359 acres, the number of lots purchased actually increased by 8.5% from 2022. This trend underscores the growing confidence in the market, with experts forecasting continued momentum into 2024.

Jim Daniel, president of R.L. Brown Housing Reports, predicts that land transactions will maintain their pace to support new home permits and closings. This optimism is shared by Michael Ingram, founder of El Dorado Holdings Inc., who anticipates a 10% to 15% increase in new home sales and building permits in 2024.

Strategic Acquisitions and Community Building

The recent flurry of land acquisitions by homebuilders is a testament to the faith in Phoenix's residential market. Companies like Houston-based CastleRock Communities are investing heavily, purchasing 230 acres at Northpointe at Vistancia in Peoria for $34 million. This investment will yield 479 lots, with plans to develop three product lines ranging from 1,500 to 3,500 square feet, priced between $500,000 and $800,000.

CastleRock's CEO, Lance Wright, emphasizes the significance of this acquisition, highlighting the custom product lines designed specifically for Vistancia. This move is part of CastleRock's broader strategy to expand in Phoenix, having recently acquired 149 lots from Pulte Homes in Maricopa and securing additional communities in Prescott Valley.

Master-Planned Communities: The Future of Housing

Vistancia, with nearly 3,500 acres in Northpointe, is a prime example of the large-scale developments shaping Arizona's future. This master-planned community will include up to 3,200 residential units and a 370-acre commercial mixed-use development. The synergy between these residential areas and major employers like Taiwan Semiconductor Manufacturing Co. is expected to drive demand and foster community growth.

Similarly, other developers are also bullish on the market. For instance, Tempe-based Fulton Homes is focusing its efforts on the West Valley, planning to develop four communities totaling 3,600 homes. These homes will cater to a range of buyers, with prices starting under $400,000 and reaching up to the $700,000s.

Meeting Demand Near TSMC: A Hotspot for New Construction

The Greater Phoenix Metro area is experiencing a surge in development, particularly around the Taiwan Semiconductor Manufacturing Co. (TSMC) plant in north Phoenix. This area is expected to create 50,000 jobs over time, driving significant demand for new housing.

Miami-based Lennar Corp. plans to build over 700 homes in this area, targeting the influx of TSMC employees. Lennar's Middle Vistas community, located off Interstate 17 and Dixileta, is already attracting high interest from TSMC employees. This gated community, with 228 home sites, features Lennar's innovative Next Gen floor plan called Latitude. These homes offer flexible living spaces, ideal for multi-generational families, with prices ranging from the mid $400,000s to the mid $700,000s.

Additionally, Lennar is preparing to open models at Aloravita in Peoria, a project that will include 295 homes priced between the upper $500,000s and the mid $800,000s. Another development, Windstone Ranch, east of 163rd Avenue and north of Happy Valley Road, will feature 200 homes starting in the high $300,000s.

Mattamy Homes, another key player, is building thousands of homes near TSMC. Their communities, such as Sendero Crossing in north Phoenix and Sereno in Peoria, have already seen sales to TSMC employees. With multiple projects in the pipeline, Mattamy Homes is well-positioned to meet the housing needs of this expanding workforce.

TSMC's presence has also influenced other sectors. The Sonoran Oasis Science and Technology Park, modeled after Taiwan's Hsinchu Science Park, will anchor the growth in the Biscuit Flats area, where 12,000 acres will be developed into a mix of commercial uses and housing. The state is partnering with Phoenix and Peoria to position 17,000 acres around the TSMC campus for manufacturing sites, commercial development, and master-planned communities. The upcoming 2,300-acre state land auction is a key milestone, expected to spur further development and investment.

Continued Growth in Deer Valley and Beyond

The Deer Valley area, near Phoenix Deer Valley Airport, is also seeing significant development. Ryan Companies, for instance, has been involved in major projects across the industrial, office, multifamily, and healthcare sectors. Their recent industrial buildings and ongoing search for more sites in north Phoenix underscore the area's potential.

Furthermore, a major bioscience corridor is emerging, led by the renowned Mayo Clinic. The Discovery Oasis health care and research campus along Loop 101 is expected to support as many as 2,000 jobs with significant capital investment.

Transportation and Infrastructure: Paving the Way for Growth

The ongoing development in the Greater Phoenix Metro area is supported by significant improvements and additions to transportation infrastructure. Major freeways like Interstate 17, Loop 303, Loop 101, State Route 51, and Carefree Highway are key connectors facilitating growth. These roads have already attracted major corporate users and are expected to draw even more in the future, ensuring seamless connectivity for residents and businesses alike.

Peoria Airpark: A New Frontier for Economic Development

Peoria is also making strides in economic development with plans for a new $150 million general aviation airport. This project, part of the Peoria Innovation Core, is expected to generate nearly 8,000 jobs and millions of dollars in revenue for the municipality. The proposed Peoria Airpark will include industrial buildings, office space, and retail, creating a significant employment center in the West Valley.

Tech Job Growth and Economic Impact

Arizona’s tech sector continues to thrive, leading the Southwest in job growth during the fourth quarter of 2023 with a 5.57% year-over-year increase. Major investments from companies like Intel and TSMC are driving new business to the region, enhancing the local economy and creating numerous job opportunities. The tech industry now accounts for nearly 235,000 jobs in Arizona, with high median salaries and significant contributions to the state’s economic output.

Conclusion: A Bright Future for Arizona

As the Arizona real estate market continues to thrive, especially in new construction, the Greater Phoenix Metro area stands out as a hotspot for growth and development. With strategic acquisitions, master-planned communities, and significant investments from major homebuilders, the region is well-positioned to meet the demands of a growing workforce and expanding economy.

If you're interested in staying up to date on the latest developments and receiving weekly updates, or if you want to learn more about how these opportunities and developments could impact your real estate investments, please schedule a time for a conversation using the link below. Additionally, you can be added to our newsletter to stay informed.

 

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About the Author

 

Looking for a dedicated real estate professional in Arizona? Meet Eric Ravenscroft, your trusted expert passionate about helping you navigate the real estate market. With over 14 years of experience in real estate and financial planning, Eric is committed to providing unparalleled service and guidance.

 

Whether you're searching for a new construction home, exploring investment opportunities, or planning for your financial future, Eric brings the expertise and dedication to help you achieve your goals.

Reach out to Eric Ravenscroft today and start your journey toward success in real estate. Call or text Eric today!

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