Why metro Phoenix houses are so expensive, explained in one chart
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Metro Phoenix is short around 120,000 homes, according to figures global developer Hines shared with Axios.
- That's 6.5% of the metro area's existing inventory, as of 2022.
Why it matters: The major deficit is why prices have remained steep in the Valley even during this period of slow sales and high interest rates.
Context: Home and apartment building all but stopped after the 2008 housing crash, according to Colliers researcher Thomas Brophy. It restarted in 2016, then lulled again the next two years.
- Meanwhile, more people started moving here.
- By the time building started up in earnest in about 2019, the region was already playing catch-up and home prices surged as a result of the low supply.
What we're watching: The Valley is building a ton of apartments right now.
Yes, but: Even with a concerted effort to address the supply issue over the past few years, we've barely made a dent in our shortage since 2020, per the Hines numbers.