PHOENIX — New home construction in the Phoenix Valley ticked up in June, but the broader trend still points downward.
Builders pulled permits for 3,900 new housing units Valley-wide in June — houses and apartments combined. That is up 14% from a year ago, but it follows two straight months of double-digit drops.
Zooming out, the long-term trend is still pointing down. Single-family home building peaked before the Great Recession, collapsed, rallied again in 2021, and has been sliding ever since.
Apartments tell a different story. They also peaked in 2021 and have cooled slightly since, but construction is still running higher than at any point before 2020.
New construction usually sets the pace for the much bigger resale market. Right now, the median new home in the Valley is priced just under $500,000 — and climbing. The median resale home is $489,000 — and slipping.
More than 200 separate developments are planned or underway across the Valley, adding nearly 300,000 new dwellings, with more than half of them not yet built. Most of that growth is in the West Valley, with more activity in the Northeast Valley and out in Queen Creek and San Tan Valley.
D.R. Horton, Lennar, and Taylor Morrison dominated new home sales in the Valley last year. Those 3 builders alone accounted for nearly a third of all new home sales. Right behind them: Meritage Homes, Pulte, and custom builders.
Builders are still building — just not as fast as they were, and mostly on the edges of the Valley.
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