Phoenix2018-09-26T12:42:31+00:00
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Phoenix-Mesa-Scottsdale

The third quarter update for Phoenix is more upbeat than previous projections.

The local market was hit hard during the downturn which resulted in a 60% reduction in construction volume between the peak of 2006 and the bottom of the local downturn in 2010. The market has steadily grown following that period and is now looking to grow an average of 3.8% for the next two years in 2009 normalized dollars. The forecast projects local volume will exceed pre-recession levels by 2019. For ideal bidding conditions labor and volume variations would align however during the downturn the local labor market was also hit hard reducing from a peak of 174,000 in mid-year 2007 down to 83,000 in 2010. By June 2018 labor employment jumped to 127,600 still 27% below the market peak and could follow volume in returning to pre-recession levels around 2019. Intel’s $7B Fab 42 factory in Chandler resumed construction after being put on hold in 2014. Construction started in Q4 2017 and will be completed in 2021. Residential, healthcare, and education sectors will lead the growth for the next two years. Residential will grow at an average rate of 4.9% annually while education construction is expected to increase at a 5.8% average annual rate over the next two years.

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