Professor Mark Stapp of the Masters of Real Estate Development Program describes how our local economy was affected by one of the biggest recessions. In order for Arizona, and more specifically the Greater Phoenix market to grow and prosper like it once did, changes are going to have to be made.
Overdevelopment was one of the biggest factors in our recent housing crisis. Developers across the nation saw the overwhelming absorption of housing and people moving to the Valley. These statistics that were huge indicators for developers, allowed for the surge of new development, causing too many homes to be built by too many builders.
Professor Stapp hopes that the recent crisis will trigger new thinking among developers and even Arizona residents. Stapp says that “real estate is a service business, and developers have to deliver what the customers want.” He believes the Arizona market will drastically change from the common cookie-cutter homes to more unique, smaller, custom housing.
Another promising factor is that federal loans will start becoming available to those who filed bankruptcy during the recent financial crisis. After years of not being able to obtain a loan on new, smaller, affordable housing, residents of Arizona in the coming years will now have access to loans. This is a great indicator along with housing prices rising 25% in the last year, that Arizona will begin to prosper once again.