AZ Builders are Under Building!
The Phoenix Business Journal recently published an article stating that the Arizona housing deficit has increased 1,377% since 2012. https://bit.ly/3A4s3Xn
By The Numbers.
The article mentioned above was written by Angela Gonzales at the Phoenix Business Journal. In the article she goes on to quote a study done by Washington DC based group “Up For Growth”
Arizona ranks 8th in the nation in terms of severity of its housing deficit. The need for affordable housing is crucial at this time.
Arizona’s inflation rate is said to be 2 percentage points higher than the nations average of 9.1% putting it in the neighborhood of 11.1 %.
Combine this with the Feds raising the interest rate another .75% makes home ownership affordability out of reach for first time home buyers.
Housing Drives The Economy.
Nation wide we are short nearly 3.8 million homes according to the study.
Building the 3.8 million homes would help address the affordability issue.
It would add $209 billion to the US GOP and add another $7 billion to local revenues.
To bring that home to Arizona building the 122,680 homes that we need would add 20,700 jobs over the next 20 years. Arizonans would earn and additional $26.4 billion in personal income and the state would gain GDP by $43.5 billion.
Builders Are Building The Wrong Product!
A lot of the new permits being issued are for Build To Rent Communities. These properties will never be put on the open market for sale.
This does not bring new inventory to the market for home buyers. This is only going to make the nation a renter nation.
Be sure to read my blog titled “How “Build to Rent” Communities Will Destroy The Phoenix Housing Market”! And why I think these communities are wrong for Arizonans moving forward.
