Phoenix-Chandler-Mesa: A Blueprint for Sustainable Real Estate Market Growth
The Phoenix-Chandler-Mesa metro area has been named one of the USA top ten housing hot spots for 2025 by the National Association of REALTORS®. This recognition isn’t just a reflection of a vibrant real estate market—it’s a testament to the region’s impressive economic momentum and sustainable long-term growth.
Economic Diversification: The Engine of Growth
Phoenix has evolved from a city reliant on traditional industries like agriculture, mining, and tourism to one with a diversified, high-growth economy. Nowhere is this more evident than in its booming bioscience and semiconductor sectors.
The semiconductor industry, in particular, is reshaping the region. With support from the Biden administration’s CHIPS and Science Act, Arizona has emerged as a hub for semiconductor manufacturing, attracting global giants like Taiwan Semiconductor Manufacturing Corp (TSMC) and Intel. These companies aren’t just expanding their footprints—they’re solidifying Phoenix’s role in the global tech supply chain and reducing reliance on foreign sources, protecting the availability of components vital to US manufacturing.
Intel and Taiwan Semiconductor Manufacturing Corp Driving Phoenix’s Tech Growth
Intel employs over 12,000 people locally and is expanding with $7.86 billion awarded in 2024 for four semiconductor facilities, including a 700-acre site southeast of Phoenix. This aligns with Intel’s efforts to boost domestic chip production and solidify U.S. tech leadership. TSMC is making an even larger impact, scaling its Arizona investment to $65 billion. By 2028, its operations will generate over 6,000 jobs. Pilot production is underway at its north Phoenix fabrication plant, with more “fabs” under construction at the site. These expansions create thousands of jobs while boosting demand in construction, logistics, and retail, amplifying economic growth across the region.
TSMC's Arizona fab: Already churning out chips while construction continues, expanding its cutting-edge semiconductor production capacity in the US.
Growth in Bioscience Related Jobs
The area has also emerged as a rapidly growing hub for biosciences, ranking fourth nationally in industry growth. According to the most recent data, bioscience industry jobs in Arizona increased by 14.8% between 2020-22 to 39,118 positions. Key focus areas include precision oncology, digital health, and neurosciences. The Greater Phoenix area specifically has more than 26,000 bioscience-related jobs, marking a 66% increase since 2015.
Discovery Oasis: Mayo Clinic's visionary 120-acre biotechnology corridor in Phoenix, fostering groundbreaking healthcare innovation and collaboration between industry leaders, researchers, and entrepreneurs.
Population Growth: 54,000 Reasons Why Phoenix is Thriving
It’s not just companies flocking to the Phoenix metro—people are, too. In 2023, the area added over 54,000 new residents – a 1% growth rate - ranking fourth nationally in nominal year-over-year population growth. This steady influx reflects Phoenix’s appeal as a place to live and work, thanks to its affordability, job opportunities, and quality of life.
For the real estate market, this population growth translates to sustained demand. Movers relocating for career opportunities or lifestyle changes represent a significant portion of buyers. This trend has bolstered property values and kept market activity robust, even as other regions experience stagnation.
Infrastructure and Workforce Development: Building for the Future
According to a study by Arizona State University's W.P. Carey School of Business, Phoenix’s success results from deliberate investments in infrastructure and workforce development. The Phoenix airport system, for instance, now contributes $44.3 billion annually to the local economy and supports nearly 246,000 jobs. Sky Harbor is undergoing large-scale expansion across multiple terminals, terminal connections, and airfield capacity. This level of economic impact positions the region as a critical hub for domestic and international business.
Phoenix Sky Harbor Airport's $3.5 billion expansion includes a new West Terminal, a six-gate Terminal 3 concourse, and a post-security walkway connecting Terminals 3 and 4, meeting rising passenger demand.
Arizona State University is helping to create a skilled workforce that meets the needs of cutting-edge industries. ASU’s Polytechnic campus expansion, in particular, is preparing students for careers in biosciences and semiconductor manufacturing, ensuring that companies like Intel and TSMC have access to top-tier talent.
A Balanced and Sustainable Real Estate Market
Despite the rapid growth, the Phoenix housing market has remained balanced—a key factor in its long-term appeal. In August 2024, Arizona's median home price reached $442,900, a modest 1.3% increase from the previous year. This steady growth contrasts with the volatility seen in other high-growth markets.
The sale-to-list price ratio stood at 98.1%, meaning homes are selling close to their asking prices. Additionally, only 14.9% of homes sold above list price in November 2024—a 1.5 percentage point drop from the previous year, signifying a significant decrease in bidding wars compared to recent years. These conditions give buyers more negotiating power while ensuring sellers retain solid value for their properties.
Affordability and Mortgage Rates: Expanding the Buyer Pool
One of the most encouraging signals for the housing market is the projection that 30-year mortgage rates will stabilize around 6% by 2025, according to NAR. This stabilization is expected to improve affordability and expand the buyer pool, particularly for first-time homebuyers who have faced challenges with rising rates and prices in recent years. For the Phoenix-Chandler-Mesa metro, where home prices have seen steady but measured growth, this shift could make the dream of homeownership more accessible to a wider range of buyers.
In Conclusion
The Phoenix-Chandler-Mesa metro is a case study in how strategic planning, economic diversification, and population growth can transform a region. The area’s ability to attract and retain businesses, create high-paying jobs, and maintain housing market stability sets it apart from many other metros.
For anyone concerned about the future, the outlook here is reassuring. Phoenix has shown that it’s possible to balance rapid growth with long-term sustainability. Everything points to continued success, whether it’s the cutting-edge work happening at Intel and TSMC, the steady influx of new residents, or the thoughtful infrastructure investments.
This isn’t just a good moment for real estate—it’s a great moment for the entire region. With mortgage rates projected to stabilize, job creation accelerating, and housing affordability improving, Phoenix-Chandler-Mesa is poised to remain a leader in both