Phoenix, AZ

Phoenix is one of many cities that sees the rising cost of living in the Bay Area as an opportunity.

A worker living in Phoenix does not need to make as much as a worker in San Jose to enjoy the same standard of living. This makes it an attractive prospect for tech companies looking to cut costs while retaining key talent. Phoenix has been courting these companies for a long time – at one point acting as a trial market for same-day drone delivery – and these efforts are beginning to bear fruit. Office rentals in Phoenix grew throughout the pandemic, with big-name tech companies as some of the largest investors.

There is going to be a lot to do in Phoenix in the coming years. Construction volume is set to decline in 2022 as the market returns to its pre-pandemic state, but it should continue to grow after. The highs of 2021 should be surpassed as early as 2024. The construction labor market remained relatively stagnant in 2021, meaning that labor costs will probably fall this year before rising next year. Unemployment is also improving and is within a few percentage points of 2019 levels.

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* Other structures include religious buildings, amusement, government communications, and public recreation projects.
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