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HOENIX — Arizona's housing market is shifting, with lawmakers and real estate experts saying the state needs to address its affordability crisis by bolstering its housing supply. However, inventory of homes for sale is on the rise across metro Phoenix, particularly in the West Valley.
Buckeye Mayor Eric Orsborn credits high growth in his city to new employment opportunities associated with the local semiconductor industry. "We're really concentrating on bringing in employment and retail," he said. Buckeye saw a 38% year-over-year increase in single-family home inventory for sale in March, according to Phoenix Realtors.
But experts warn that commuting costs and location factors also play a role in determining what homebuyers can truly afford. Mark Staap, director of Arizona State University's Center for Real Estate Theory and Practice, says growth needs to be intentional, creating social and cultural infrastructure to support new developments.
Orsborn shares this concern, saying Buckeye wants to create amenities along with jobs so locals don't have to drive into Phoenix or other cities. "We want it to be well thought out," he said.
The Loop 303 is an example of the kind of infrastructure setting up the West Valley for growth, according to Christy Walker, Phoenix Realtors board president. The northwest Valley suburb of Peoria is also using its relationship with jobs and housing to drive local growth, with a recent $2 billion semiconductor project from AMKOR.
The year-over-year single-family home inventory increase in Peoria was 68.4%. Scottsdale, on the other hand, saw a more modest 27.1% increase in single-family home inventory, and has a significant number of condos and townhouses.
Real estate experts are looking at challenges and opportunities ahead, including rising costs due to President Trump's tariffs and increased deportation efforts that could hamper the construction industry. However, some believe these policies may eventually benefit the housing market as Arizona communities with room to grow attract new employers and residents.
