Significant Uptick in New Home Permits Signals Robust Future Supply in Phoenix Metro

In Chandler, Mesa, and Gilbert, a robust construction pipeline is evident, with Mesa issuing over 2,100 new residential building permits in the past 12 months—reflecting a strong growth orientation. The area’s high permit volume aligns with above-average population growth and ongoing employment gains, according to regional planning and BLS data. Investors benefit from a continually expanding asset base, while fixed asset tax treatment in Arizona provides opportunities for depreciation and long-term sheltering. Local zoning and planning remain responsive, with cities accelerating permit reviews to address housing supply constraints. As these communities are still below full build-out saturation, opportunities remain for both greenfield and infill development. East Valley municipalities have also prioritized green infrastructure, supporting future sustainability and energy cost reductions.

The Phoenix-Metro residential market is demonstrating stabilized median home prices, with ARMLS reporting median sales hovering around $445,000 as of July 2025. Days on market have averaged 44, while closed sales volume remains subdued year-on-year, reflecting a rebalancing after the post-pandemic surge. Wealth managers note the environment supports portfolio diversification, as price corrections can unlock value. Arizona’s property tax assessment ratios remain unchanged, offering predictability for high-net-worth owners. Regulatory attention continues on short-term rentals and water-use compliance, adding layers of due diligence for buyers. The region’s market is considered structurally sound due to demographic growth and sustained in-migration, supporting longer-term value preservation. Smart-city initiatives, such as investments in energy-efficient infrastructure and water resilience, position Phoenix as a future-ready market.

Recent data from the Phoenix Planning and Development Department shows a 7% year-over-year increase in new single-family building permits issued across the Phoenix metropolitan area as of July 2025, with more than 18,000 permits year-to-date. This surge reflects sustained builder confidence, particularly in communities such as Eastmark (Mesa, DMB Associates), Vistancia (Peoria, Shea Homes), and Asante (Surprise, Lennar), where infrastructure investment is prominent. From a wealth management perspective, increased inventory may temper price escalation, influencing portfolio rebalancing and real estate trust strategies. Arizona’s property tax policy remains favorable for primary residences, although higher supply can moderate assessed value growth. No new restrictive legislation is pending, supporting future-proof stability. Smart-city features—such as solar-ready designs and reclaimed water landscaping—are increasingly standard in these communities.

The City of El Mirage has completed a $28 million public safety headquarters, consolidating police, fire, and emergency services. The facility was funded through municipal bonds and state grants. Gensler served as the architect, emphasizing secure, resilient design. The project was prioritized under recent state legislation aimed at upgrading first-responder facilities. Modern HVAC and LED lighting systems reduce operational costs and environmental impact. Community members report increased response times and improved civic pride.

Christopher Todd Communities is developing a 220-unit build-to-rent (BTR) gated neighborhood in Apache Junction. The project leverages Arizona’s recent legislation supporting the BTR asset class, which is considered resilient by wealth managers seeking steady income flows. Property tax arrangements follow Pinal County’s guidelines for rental communities. The developer has completed similar projects in Peoria and Glendale. The neighborhood will feature private backyards, pet parks, and energy-efficient appliances. Community impact includes increased rental supply and enhanced neighborhood amenities.

The Rio Nuevo Board has approved the $185 million Arena District, which will encompass a 5,000-seat arena, retail, and residential components in downtown Tucson. The district will be financed through a mix of public funds and private equity, with anticipated completion in 2027. Wealth managers cite downtown arena districts as catalysts for urban renewal. The project qualifies for Arizona’s Government Property Lease Excise Tax (GPLET) abatement, supporting feasibility. Swaim Associates is the architect of record, with prior experience on downtown Tucson civic projects. The district is expected to spur significant economic and cultural benefits for the community.

The City of Avondale, in partnership with Gorman & Company, is developing a 180-unit affordable housing project using Low-Income Housing Tax Credits and Arizona Department of Housing funding. The project targets families earning less than 60% of area median income and will include on-site services. Gorman & Company specializes in affordable and workforce housing nationally, and this marks their first Avondale project. Recent zoning code amendments facilitated the site selection. The development uses high-efficiency HVAC and on-site solar arrays. Community organizations have endorsed the project for helping address Avondale’s housing affordability gap.