Central Arizona Housing Industry At Risk?

Loss of affordable homes tarnishes Valley's appeal...

The Arizona Republic reports that with all the increases in housing prices over the last two years, Phoenix's image as an affordable housing hot spot is beginning to fray.

"I think we're at the beginning of seeing consumer resistance to price increases," said housing analyst R.L. Brown. Brown worries that rising prices will make Phoenix less attractive to house shoppers, especially those who can move anywhere and make their decision based on the price of housing. If Valley home prices become on par with other desirable housing areas in the country, it would pose an "immense threat" to large scale home builders in the area, Brown said.

Housing permits in the metro Phoenix area totaled 49,200 through September, putting the region 5.6 percent ahead of last year's record pace. But permits have dropped for three straight months, which Brown attributes to builders having only a small inventory of lots ready for construction and the slow processing time from emerging market cities such as Maricopa and Pinal County cities that are swamped by rapid growth. More...