Latest: April 2024

In the Phoenix Metro area, new home construction in 2023 saw a substantial number of building permits issued despite a decline from previous years. Phoenix-Mesa-Chandler ranked fourth nationally, with over 13,000 new home permits issued throughout the year. This figure represents a 23.2% decrease compared to the previous year but still underscores Phoenix's significant role in the national housing market, reflecting both ongoing demand and some economic challenges impacting construction rates​ (AZ Big Media)​.

Regarding home prices, the median price in Phoenix has been observed around $375,313, which indicates a competitive market with relatively high demand. However, the number of permits issued for new builds has slightly decreased, reflecting a minor cooling in the construction activity, possibly due to economic factors impacting the overall housing market​ (CBRE Commercial Real Estate Services)​.

The duration it takes to complete new homes can vary, but industry reports suggest that supply chain disruptions and labor shortages have been affecting the timeline of construction projects. This has likely led to longer construction times across the board, although specific durations can depend heavily on the type and location of the project​ (CBRE Commercial Real Estate Services)​.

Several new home construction projects are spread across Phoenix, with significant activity in areas that have historically been less developed, providing new opportunities for housing development. The city continues to expand outward, making these less central areas increasingly important for new housing developments​ (CBRE Commercial Real Estate Services)​.

As for programs available to potential homebuyers or builders, various incentives might exist, typically at the state or local government level, aimed at promoting residential development or making home buying more accessible. These programs can often be found through local housing authorities, real estate agents, or development offices in Phoenix.

For the most up-to-date and detailed information on specific programs available in Phoenix, checking with local real estate agents or municipal housing departments would provide the most current data and opportunities for builders and buyers alike.

Phoenix New Home Construction Update:

Market Slows, Prices Moderate

• Recent Trends: Phoenix's new home construction market is experiencing a slowdown. Home prices, while still high, are showing signs of stabilization and potential slight declines in some areas.

• Factors Behind the Slowdown: Rising interest rates, economic uncertainty, persistent supply chain issues, and labor shortages are contributing to the reduced pace of new home builds.

• Longer Construction Times: Expect longer construction timelines if you're considering a new build. Material delays and worker shortages are impacting completion times.

• Focus on the Suburbs: The majority of new home development is concentrated in the outer suburbs of Phoenix, such as Buckeye, Goodyear, Surprise, Queen Creek, and even Pinal County. These areas often provide more land and potentially better affordability.

Need Help Buying?

• Down Payment Assistance: There are programs available to assist with down payment, make sure to speak with a reputable mortgage lender for proper information. Keep in mind you’ll still have to pay for closing costs (and possibly agent commission).

• Affordable Options: Research specific affordable housing developments offered by some builders and non-profits.

• First-Time Buyer Programs: Many lenders have programs designed to make buying your first home easier.