There are many reasons to be excited about the future of the Phoenix housing market, especially in the downtown sector. This article will look at the downtown and midtown Phoenix market. If you would like analysis on your particular zip-code, we’d be happy to supply that for you on an individual request basis.
We believe a robust housing market relies principally on jobs; It is hard to buy a house or condo without one. Thus, we look at the job market first and factor in other influences such as supply, mortgage interest rates, livability and such. So what’s happening to the job market in downtown Phoenix?
The downtown campus of ASU/UofA is likely the biggest driving force for job creation in the downtown Phoenix area. Year after year the student population has increased, over doubling since opening in 2006. It is believed ASU downtown will reach 20,000 students by 2015. With students come a variety of jobs… teachers, support staff, maintenance positions, and outside services to name a few.
TGen is also an important catalyst to the downtown job and housing market. When first proposed I was talking to my brother-in-law from the Boston area. He voiced excitement in being awarded the project as a similar one in Boston created billions of dollars of spin-off ventures. Now we see the same thing happening in Phoenix.
In April we announced the Institute for Advanced Health’s choice of Phoenix to build and house the world’s largest medical supercomputer. Dr.Patrick Soon-Shiong, a billionaire in the biomedical industry, choose Phoenix over other markets because of the collaborative opportunities TGen and the ASU/UofA Schools of Medicine and Pharmacology offered. The supercomputer project will bring both construction jobs and as well as a over 600 permanent jobs to the downtown region. WOW is what I say. I n late May another announcement came as TGen (Translational Genomics Research Institute) was grated approval for a $50 million dollar facility. The new building will house much needed wet-labs and research space. According to the City of Phoenix the construction phase will employ nearly 500 people and the lab itself will add another 400 jobs when completed in 2014.
In addition to the effect the university and bio-science sectors are having on downtown is CityScape and a number of other private ventures. Here are the highlights:
CityScape recently announced it will be fully leased by September, 2011; This is quite remarkable. Since opening it’s doors, CityScape has become home to nearly 40 businesses who employ hundreds in a wide range of jobs.
The New Oasis on Grand made it though the City’s Planning department hurdles and began construction in late May. When completed it will offer both market rate and affordable housing apartments to the neighborhood with a focus on live/work accommodations for the arts community. The project offers design, architectural and construction jobs today and permanent jobs in the future. Plus, the 60 new apartment homes will help support the growing Grand Avenue businesses.
The Foundry, a new venue from Danny Zelesko of Evening Star & Live Nation fame, opens its doors in July. The Foundry will be home to a variety of concerts and likely a corporate event venue. More jobs and energy being brought downtown.
The Phoenix Convention Center is now home to more conventions, association meetings and trade show than ever before. These events bring jobs to the downtown sector and beyond while supporting our vital hospitality industry.
Major League Baseball’s 2011 All-Star Game will be hosted in downtown Phoenix in 2011. Millions of dollars will be spent at hotels, restaurants, and other businesses. Dozens of events will keep people employed at a time when it is usually quite. The tax revenues alone will help the City and State at a time when dollars are quite precious.
CONCLUSIONS: Real estate market experts say jobs are the key to the future. Downtown Phoenix is proving to be a place employers, developers and entrepreneurs are attracted. The result, we believe strong housing demand. If downtown living is on the horizon for you, the time is now while prices are still affordable. Zip codes like 85006 (home to the Coronado Historic District, have been among the highest performing for nearly a year. Demand will likely result is increased home values over time… a rare statement in the Greater Phoenix housing market.
If you would like to explore the opportunities, we’d be honored to represent you. Our years of experience, passion for getting clients great deals, strong negotiation skills and area knowledge will benefit you. Let us know what you need and want and we’ll work hard to find it for you.
Gene Urban & Ron Urban
The Urban Team at Realty Executives
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