When it comes to expansion, Phoenix rises above nearly all other cities in the nation. According to a study by the Associated General Contractors of America, Phoenix had the second-largest increase in construction jobs nationally last year.
135 thousand – that’s the number of construction jobs that Phoenix alone created. Compared to 2017, the metropolitan area added 17,500 additional jobs. The only city with a larger contrast was Houston with 24,000 jobs. This increase of 15 percent is the eighth-highest growth rate in the nation.
Arizona Chapter of the Associated General Contractors of America president Dave Martin explains that the jobs created in Phoenix stem from the overall expansion of the county. “We’re one of the top growing counties in the country,” Martin said. “That growth doesn’t go without construction.”
In fact, not only is Maricopa County one of the fastest growing counties in the country; it is the fastest growing in the country. According to the US Census Bureau’s 2017 population estimates, Maricopa County experienced a population increase of roughly 74,000 people – more than any other county in the nation.
The increase of the county’s population also attests to the incredible health of the county. With an attractive government regulatory climate, affordable income tax rates, and impressive health care, Arizona is an unparalleled location for businesses and residents of all ages.
Consequently, the demand for both residential housing and commercial real estate space has increased. “Generally speaking, you have a couple of different sectors for these construction jobs,” Martin said. “One of them is the home-building sector, which would generally be on the outskirts of town. The other sector that’s growing is the commercial sector. Just by looking at the cranes, you can see that a lot of these jobs are occurring in both downtown and midtown Phoenix.”
In terms of residential housing, apartments alone had an incredible year in 2018. According to a study by apartment search website RentCafe, developers built over 10,000 apartments this year, which represented a 55 percent year-over-year increase. Transitioning into 2019, Phoenix ranks as the seventh-highest US housing market expected to grow.
Martin believes that this upward trajectory will continue into 2019 and level off in 2020 as supply and demand come to an equilibrium. But for now, the expansion of the city and its accompanying construction are building a burgeoning Arizona economy.