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From the suburbs to the exurbs: public records show cyclical nature of growth

By Philip Haldimann

independent news media

Affordability is everything when it comes to housing.

There was once a time when families congregated in suburbs, places like Peoria and Chandler, to raise them in homes large enough to grow old comfortably.

Nothing has really changed since then, but now families are moving across the suburbs to suburbs like Buckeye and Florence.

Jim Belfiore, a real estate analyst, said the more people went out, the more the seams in their homes burst. Over the past 12 months, suburban demand and supply increased 29%, while suburban demand remained flat and fell 3%, he said.

“The main reason is that prices in urban and suburban centers have risen to the point where people can’t afford to dream of the American dream, so go hopscotch and drive further afield to work. Because it will,” he said.

To gain a better understanding of this growth, Independent News Media requested building permits issued to a number of municipalities over the past five years, generally showing continued growth throughout the vast valley and surrounding areas. However, it was found that more activity was moving from the Maricopa County metropolitan area to Pinal County.

Requests for public records included the municipalities of Peoria, Scottsdale, Paradise Valley, Queen Creek, Apache Junction, and Gold Canyon.

In 2017, Maricopa County’s population grew by about 73,650, an increase of 1.7 percent, according to the Census Bureau.

The county’s population increased by approximately 13 percent from 2010 to 2017.

Pinal County’s population increased by about 14 percent during this period.

Of the municipalities subject to record requests, no one reflects this growth more than the communities of Peoria and Pinal County.

Peoria experienced a significant increase in residential and commercial with a more than 50% increase in building permits from 2013 to 2018. While Pinal County saw an 82 percent increase in building permits from 2013 to 2017, Scottsdale’s building permits remained flat, at 2,785 in 2014 and 2,721 in 2018.

Belfiore said cities like Scottsdale and Phoenix have more construction and development requirements and less affordable housing.

He said there is currently active development in locations such as Maricopa, Santan Valley, Florence, Coolidge, Casa Grande and Buckeye.

“We will continue to see explosive epidemics in the suburbs,” Belfiore said.

Meanwhile, the West Valley matures.

About 50 percent of Maricopa County’s growth will occur in the West Valley over the next 25 years, according to the Maricopa Government Association.

Liz Recchia, director of government affairs for the West Maricopa County Regional Realtors Association, said the West Valley will offer housing, retail, and an employment center with amenities to serve residents from Phoenix’s very large bedroom community. and surrounding cities will work together in terms of local economic development to drive growth in employers, infrastructure, jobs, fillers and housing.

All of this is starting to meet pent-up demand, she said.

The West Valley business community and city is designed to be a place where anyone can grow, get an education, get a job or start their own business, live, play and retire while having their children and grandchildren nearby. Recchia said they are working together to create a community.

“Builders are buying parcels that were plated pre-recession and re-plating them for current market products, building models quickly and building interest lists months before groundbreaking.” she said.

“I speak to brokers frequently and the most requested topic is West Valley projects. Multiple offers are common for resale products.”

Power of Peoria

From 2013 to 2018, Peoria approved 7,735 single-family home permits. During the period of rapid growth, he increased from 845 companies in 2013 to 1,562 companies in 2016, an increase of 85%.

Benjamin J. Katz, a realtor at Lake Pleasant Real Estate, said the booming economy was the simple reason for such explosive growth.

He said more people moved to the Phoenix metropolitan area, unemployment was extremely low, and interest rates were at record lows from 2015 to 2017.

“Millennials started buying their first homes in earnest, and builders took advantage of that,” Katz said.

Metro Phoenix is ​​growing at about 2% per year and has a population of about 95,000 to 100,000.

Mark Stapp, director of the Center for Real Estate Theory and Practice, said this equates to a demand for about 27,000 to 30,000 new homes, driven by rising costs of living and employment.

He noted that Peoria has grown alongside Metrophoenix, but is a bit behind its recovery since the recession.

“Right now, Peoria is one of the fastest growing areas in the metropolitan area. likely to become.”

This growth was followed by commercial areas followed by residential areas in Peoria.

Since 2013, the city has approved 121 new commercial tenancy permits. This is a building dedicated to his one specific tenant, such as QuikTrip and a fast food restaurant. The number of approvals peaked at 42 last year, up almost 100% from 2017 and 250% from 2013.

Rick Bass, director of economic development services in Peoria, said the reasons for the increase are many and varied, but they include a strong economy, the city’s focus on relationship building and customer service, and particularly making Peoria a regional and national destination. , said that it is introduced to the world worldwide.

“The city has a specific strategy to significantly increase Peoria’s visibility, and it has worked and will continue to do so,” he said. “It’s clear that Peoria is a great place to find and grow a business. Our job is to drive this forward.”

A Quiet Boom Arrives in Pinal County

Growth in parts of Pinal County, including cities such as Apache Junction, Gold Canyon, and Queen Creek, followed a similar trajectory.

Apache Junction saw a more than 300% increase in single family permits, from 33 in 2014 to 138 in 2018.

Gold Canyon received over 400 building permits in 2018, a record for the community.

And in Queen Creek, single-family home permits nearly doubled over the period, from 689 in 2014 to 1,295 in 2018.

Local industry experts say the area has reached a stage where it needs more diverse housing in places like Apache Junction and Gold Canyon.

Developers are building new single-family homes priced at $200,000 to $400,000 or more. East and west of Apache Junction, home prices are approaching $100,000.

Apache Junction Economic Development Director Janine Soley said it is important for Apache Junction to have a diverse portfolio of housing types that meet the needs of a diverse workforce.

“In terms of economic development, employers need to have access to a local and reliable workforce within reasonable commuter sheds,” Sory said. “The type and quality of work determines what employees think is a reasonable commute time. It can be decided.”

Live-and-work buildings are popping up all over the Valley, including not just housing, but retail, other businesses, and employment.

Designated Broker Liz Harris said the model could be a good fit for the region.

This type of mixed-use development is already permitted by B-3 zoning at Apachejunctions found primarily in and around the downtown area.

She said it would be a great move for the city.

“It’s a phenomenal concept, but it doesn’t always come to fruition,” she said. “I think it’s a very smart thing if it’s marketed correctly.”

Scottsdale frenzy seems to be on hiatus

Since 2014, the total number of building permits issued in Scottsdale has remained relatively flat, at over 2,500 each year, with some fluctuations depending on the type of permit.

Scottsdale’s director of development services, Michael Crack, said the rise and fall of building permits from year to year depends on what’s in demand.

“Right now it’s on a gradual upward curve, very shallow, and almost close to being able to sustain the number of permits we’re issuing over the last few years,” he said. “I know there are a lot of tenant improvement plans coming in, but they are in existing buildings, not new buildings.”

Clark cited Scottsdale Fashion Square as an example of a property under construction on an established site.

“They’ve been doing a lot of rebuilding, especially inside, doing major renovations and interior floorplans, and they’ve moved in and out of various stores. will happen,” he said.

Overall, Mr. Clack – although he points out that he is not an economist – believes Scottsdale’s building permit numbers are healthy.

“If you have a vacant lot, it means it has a certain value from a property tax perspective. When you start improving the land, its value goes up and so does the property tax,” he explained. “The city is getting long-term benefits just by improving the land.”

Paradise Valley still stands out

Paradise Valley is unique in that its land use is largely confined to single-family homes and resorts on one-acre lots.

Since 2014, the Paradise Valley Planning Authority has applied for permits for nearly 350 single-family homes. In addition, over 100 permits were issued for hotels during the same period.

Officials say the numbers show the health of the local economy.

Demolition and rebuilding has accounted for half of all residential building permits in Paradise Valley for more than a decade, deputy mayor Dawn Murray Buckland said.

“This snapshot reflects the trends we are seeing in the Phoenix metropolitan area, but in terms of reconstruction. 50 percent,” she said. “I don’t know of any city in Arizona that’s undergoing so much rebuilding. This is a very desirable location. I hope it continues.”

Deputy Mayor Dawn Marie Buckland said the town owes its prosperity to the resort.

But Ms. Backlund pointed to the volume of single-family home permits as a real indicator of what the town’s residents think of Paradise Valley, noting that the town has consistently seen a steady flow of single-family home permits. .

“This confirms that Paradise Valley is a highly desirable community and demonstrates our trust in the City Council and professional staff,” she said. “People are investing. They are building new homes on vacant lots, or demolishing existing homes to build new homes. We care about them at the same time, and there’s ample opportunity for both.”

Editor-in-Chief Terrence Thornton, News Editors Melissa Rosequist and Richard Dyer contributed to this report.

Philip Haldiman can be reached at 623-876-3697 or haldiman@newszap.com.

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