ARIZONA NEWS

Arizona municipalities trying not to slow down homebuilders amid surge

May 19, 2021, 4:45 AM | Updated: May 20, 2021, 8:27 am

(Photo by Justin Sullivan/Getty Images)...

(Photo by Justin Sullivan/Getty Images)

(Photo by Justin Sullivan/Getty Images)

This story is part of KTAR News’ “Arizona’s Rising Real Estate” weeklong special series on 92.3 FM, online and our app.

PHOENIX — At a time when the housing market in the Valley is desperate for more inventory, homebuilders are trying to keep up. However, they must get plans and permits approved first before they can have shovels hitting the ground.

That’s where attorneys like Jordan Rose come in.

The founder and president of Rose Law Group helps homebuilders process applications for things like zoning and land use in cities across Arizona.

“I would say that 95% of them at this point in time are welcoming the growth and removing red tape,” Rose told KTAR News 92.3 FM about municipalities. “Elected officials are filtering that message down to their staff and their management and saying, ‘Let’s figure out how to say yes, not no, and work on that with the developer as a partner.’”

She believes that’s due, in part, to municipalities wanting to make up for the economic slowdown they experienced during the COVID-19 pandemic.

Still, regulations remain that could make the homebuilding process difficult and costly for homebuyers.

A new study by the National Association of Home Builders shows regulations imposed by government at all levels account for $93,870 – or about 23.8% – of the average sale price of a new single-family home.

That’s up from $84,671 in 2016 and $65,224 in 2011.

Rose said in Arizona, homebuilders face regulations for things like roadways built prior to construction of model homes, the height of a roof on a home and the distance a garage can be from the front property line.

“There’s all sorts of issues that are problematic for developers, so it’s certainly no walk in the park,” Rose said. “But the attitude is ‘let’s figure out how to get to yes generally right now.”

Another challenge for homebuilders is a shrinking supply of land that’s available for development.

The Arizona State Land Department is helping out by opening more state land for development. It recently released 2,783 acres of state land in the far southeast Valley, which has seen tremendous growth over the past few years.

D.R. Horton Inc. and Brookfield Residential Properties Inc. submitted the highest bids in an auction for state land that sits in Apache Junction. The pair of homebuilders paid $245.5 million for it – more than three times the appraised value of $68 million – and plan to build a master-planned community there called Superstition Vistas.

The bid also came with another 5,500 acres of adjacent land that the homebuilders agreed to entitle and provide the infrastructure for future development.

“Construction will probably start right around the end of the year,” John Bradley, Arizona division president of Brookfield Residential, said. “It’ll take us probably another year to be prepared to sell to builders. D.R. Horton will probably be building homes middle of next year.”

Bradley said they got the land in November, and so far “we have not had any what we would call red tape challenges.”

“We have plenty of things that we need to work on with the city,” he added. “But we have been doing that very, very constructively.”

When it’s complete, Superstition Vistas will have about 10,000 homes with nearly 30,000 residents.

Anticipated amenities include paths, trails, parks that define a specific neighborhood, a community pool, and a community farm. There will also likely be a regional park with a lake, ball fields, playgrounds and a dog park.

Bradley said he believes there’s high demand for master-planned communities like this.

“The market has taken off,” he said. “This is a post-pandemic scenario that I’m not sure too many people saw coming. But it has been very, very strong and it seems to be continuing. I’m not sure that the end is in sight.”

Realtor.com recently ranked Phoenix third in the nation for building the most homes for buyers. The city recorded more than 8,600 building permits for new homes as of March.

We want to hear from you.

Have a story idea or tip? Pass it along to the KTAR News team here.

Arizona News

Arizona gas prices have risen by 28 cents per gallon in the last month....

Kevin Stone

Here’s why Arizonans are feeling more pain at pump than most of nation

Arizona gas prices have been rising at a significantly faster pace than the rest of the nation over the last month, and the worst is yet to come.

39 minutes ago

Maricopa County Recorder Justin Heap has downsized his external communications staff from seven to ...

Associated Press

New Maricopa County recorder signals shift away from combating disinformation

Maricopa County Recorder Justin Heap is moving away from the office's previous efforts to combat misinformation.

2 hours ago

2025 flu season worse than it's been in 15 years, data shows...

Serena O'Sullivan

Arizona nurse practitioner says this flu season is worse than last

The 2025 flu season is hitting Arizonans hard, with some patients staying sick for a whole week, according to a Banner Health nurse practitioner.

4 hours ago

climate change, young people, Mesa...

Roxanne De La Rosa

Young adults and teens combat climate change through Mesa initiative

A new Mesa grant initiative will allow young adults and teens to compete for funding for projects and ideas that address climate change.

4 hours ago

Fountain Hills law enforcement...

Roxanne De La Rosa

Fountain Hills announces drop in law enforcement costs without reduced service

A law enforcement contract between Fountain Hills and the Maricopa County Sheriff's Office will drop in cost in the upcoming year without any reduction in service.

5 hours ago

Investigators look at a crashed Learjet at Scottsdale Airport after it collided with a parked plane...

Associated Press

1 killed, 3 injured in Scottsdale Airport runway crash involving Mötley Crüe singer’s plane

One person died and three others were hurt when a plane owned by Mötley Crüe's singer collided with another plane the Scottsdale Airport runway.

13 hours ago

Sponsored Articles

...

Bright Wealth Management

How to start your retirement planning early and avoid costly mistakes

Retirement planning can feel overwhelming, but with the right guidance, you can avoid costly pitfalls.

...

Fiesta Bowl Foundation

Join us for the 52nd annual Vrbo Fiesta Bowl Parade

The 52nd annual Vrbo Fiesta Bowl Parade presented by Lerner & Rowe returns on Saturday, December 28, at 10 a.m.

...

Day & Night Air Conditioning, Heating and Plumbing

Why a Heating Tune-Up is Essential Before Winter

PHOENIX, AZ — With cooler weather on the horizon, making sure your heating system is prepped and ready can make all the difference in staying comfortable this winter.

Arizona municipalities trying not to slow down homebuilders amid surge