Homebuilding in Phoenix is about to get more expensive. Here’s why
Higher tariffs on building materials and increased city development fees are likely to raise the cost of new residential construction in the Valley by $45,000 per home or more.
The city of Phoenix recently proposed hiking development fees by double digits to pay for water plants, sewer pipes, roads and fire and police stations in growing areas.
“Higher impact fees will be passed right onto consumers,” said ASU real estate professor Mark Stapp. “It’s going to make housing more expensive.”
Already many families are struggling to cover housing costs.
Median home prices have soared by nearly 60% since 2020, while rents climbed more than 35%.
