PHOENIX – Despite some looming challenges, particularly housing affordability, when the Greater Phoenix Chamber presented the annual economic outlook, Phoenix economists agreed that the future is bright for both the state and the country.
Elliott Pollack, founder of Elliott D. Pollack & Co., based in Scottsdale, said that both rental and homeowner vacancies are at record lows across the country, and there is an estimated shortage of 25,000 single-family homes and 15,000 units in Phoenix what is needed to keep up with normal population growth.
“Now we have a short supply of housing stock, so we will see a huge increase in prices as the supply and demand are limited,” he said.
Phoenix has not yet reached prohibitive levels, Pollack said, but a rate hike could quickly turn the tables.
“We’re about to shake affordability,” he said.
While Phoenix remains comparatively affordable compared to Los Angeles, Chicago, and Seattle, where most of Phoenix’s new residents move from, the people who will feel the pressures of the market fastest will be Millennials who have lived in Phoenix and are trying to Homes for the first time, said Pollack.
Read more about this story from the Phoenix Business Journal.
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