Scott MacPherson, Rider Levett Bucknall’s Executive VP for Phoenix, recently issued a Q1 2022 Snapshot for the market.
Among the report’s findings are:
- Supply Chain Stabilization: RLB expects to see supply chain disruptions start to stabilize toward the end of the year;
- Residential Market Growth: The report expects the housing sector to produce units at pre-Great Recession levels in an attempt to meet the still-growing degree of demand.
- Infrastructure Improvement: To meet the demands of an increasing population, infrastructure will continue to expand rapidly, including water treatment recycling projects. Project volumes will increase, in part, due to increased federal project funding.
- Industrial Boom to Continue: Noting an increase in Phoenix industrial manufacturing “at a scale not seen since the industrial revolution,” RLB notes there may need to be a significant increase in commodities production.
The report also finds that Phoenix’s cost index will continue to grow at the same rate as the national cost index and trend but that the actual costs will remain markedly lower, at least through 2025.