(Disclosure: Rose Law Group represents Taylor Morrison.)
By Brad Schoenberg | InBusiness Phoenix
As Arizona is experiencing a surge in population, we are seeing construction starts throughout the Valley to accommodate the increased housing need.
The housing market continues to serve as a significant driver of economic growth. At Taylor Morrison, we’re seeing that the housing consumer is evolving along with it, and that stability is coming to the housing market. According to our recent data, there has been a significant increase in the number of people who specifically desire new construction, which increased from 0% in 2018 to 25% in 2023. (Sample size: 30, 292 buyers.) In the Phoenix market specifically, new home sales now account for almost 30% of all single-family home closings. That’s up from historical norms of 13%–16%. The quality of new home construction as well as the energy efficiency being built in new homes has become a major differentiator in the homebuyer’s decision to purchase resale or new construction.
The relationship between housing and the economy generates a cause-and-effect discussion. With input from builders, city planners and economists, In Business Magazine explores the issue in this month’s cover story, “Home Economics: Does the Housing Market Impact Our Economic Growth?”
The rise of remote and hybrid work that was accelerated by the COVID-19 pandemic is another factor in the housing issue. As Jay Silverberg discusses in the guest column this month from global architecture, design and planning firm Gensler, “Office Conversion: Vacancy to Vibrancy,” vacated office space has potential for community spaces, hospitality — and residential.
