Now is a great time to be on the supply side of Arizona real estate. Finding that supply, and keeping up with the demand means being in the know with real estate marketing and trends. Our team has a lot of experience helping to grow real estate companies in a variety of verticals in the U.S. and Canada. In keeping up with industry trends we recently attended Phoenix Business Journal’s Homebuilding in the Valley 2021 Outlook webinar. Here are the top takeaways from this webinar TLDR; the market’s hot!).
If you own land or bought a house pre-pandemic, you might be in a great spot. Supply is at an incredible low for land and homes in the Valley. People are flocking to areas outside of the Valley proper like San Tan, Queen Creek, Maricopa, and even Coolidge. Projects that were on hold, like the Sun Valley Parkway will get the momentum they needed when proposed 30 years ago.
The demand for labor is also up and some builders and contractors are even supporting trade education opportunities in the understaffed subcontractor spaces like plumbing. Quality has increased as home builders have pulled back on customizations and templatized builds for better efficiency. If you have anything to do with the homebuilding industry, you have a better chance of being employed and staying that way for the foreseeable future.
If you’re in need of a home with a changing family dynamic or space requirements, the outskirts are the few places with “affordable” homes – even those are creeping close to the 400’s. There is some lingering uncertainty with this new real estate bubble and concerns about first-time homeowners being priced out of the market. To make up for this, builders will be forced to scale back on amenities (think golf courses) and increase home density.
Not only is demand way up, but city staffing issues have also caused delays for builders and buyers. The counties remain business-friendly, they’re just understaffed to serve the demand.
And it’s also no surprise that supply costs are increasing like we’ve rarely seen. Lumber, concrete, labor, and land are all premiums. The squeeze between affordability and financing is felt all around.
In marketing, we see ebbs and flows of all kinds more often than many industries. Change is inevitable, and the real estate outlook is a two-sided coin. We’ll continue to stay on top of what’s new in real estate marketing, so subscribe to our newsletter for more tips.