Best of Living in Scottsdale & Phoenix Arizona Newsletter
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💻 Arizona Online Soars, PHX Industrial Expansion & Home Price Data Explained

💻 Arizona Online Soars, PHX Industrial Expansion & Home Price Data Explained

Check out what's shaping Phoenix and Scottsdale's economy right now.

Josh Zuniga
February 29, 2024

Happy Thursday!

We’ve got lots of great updates about Arizona and the Phoenix area this week.

Our university was ranked among the top 10 best online courses in the country and our industrial scene is thriving.

We are also taking a look at the latest data on how home prices have increased in the past few years.

— Josh

💻 Arizona Online Soars: Achieving Top 3% Recognition

Driving the news: Arizona Online has achieved recognition among the nation's top institutions, securing several top-10 rankings in U.S. News & World Report's annual evaluation of online programs.

This accomplishment reflects the institution's steadfast commitment to providing exceptional online education across various disciplines.

Details: Arizona Online has attained a notable top-15 placement in the 2024 Best Online Bachelor's Programs rankings, placing in the top 3% of all ranked programs.

This year, it proudly holds the No. 11 spot out of 339 programs, maintaining a consistent performance with its fourth consecutive top-15 finish.

Enrollment has surged, exceeding 9,100 students in fall 2023, marking an increase of over 1,000 from the previous year. This growth reflects the growing demand for flexible, high-quality online educational programs.

Why it matters: This prestigious ranking not only signifies the quality of education offered but also underscores Arizona Online's dedication to expanding access to high-level education.

The institution caters to a diverse audience, including working adults, parents, and military personnel, who benefit from the flexibility of online learning.

The big picture: Under the leadership of University of Arizona President Robert C. Robbins, Arizona Online has significantly strengthened its online education capabilities, aiming to provide world-class educational opportunities globally.

The bottom line: Arizona Online's success in the U.S. News & World Report rankings underscores its leadership in the online education landscape.

It not only exemplifies the institution's commitment to excellence and accessibility but also establishes a benchmark for other online education providers to emulate.

🧱 Thunderbird Commerce Park: Driving Phoenix's Industrial Expansion

Driving the news: Phoenix's industrial market is primed for significant expansion with the launch of Thunderbird Commerce Park near Scottsdale Airport.

Spearheaded by Creation Equity, the 243,360-square-foot project aims to alleviate the acute shortage of industrial space in the Valley.

Details: On February 8, Creation Equity broke ground on the $60 million project, slated to become the largest single building developed in Scottsdale.

Situated on an 18-acre site near Scottsdale Airport, the project enhances logistics and supply chain efficiencies for its future tenants. The facility targets sectors like pharmaceuticals, aerospace, electric vehicles, and semiconductors.

With projects like the Midway Commerce Center and Ten85, Creation Equity has been instrumental in shaping the Phoenix metro's industrial landscape.

Why it matters: The Northeast Valley submarket grapples with a critical lack of available industrial space, with zero square feet under construction as of the last quarter of 2023.

Thunderbird Commerce Park not only introduces much-needed Class-A logistics and manufacturing inventory but also offers modern facilities absent in older-generation buildings.

The big picture: The development underscores the growing demand for industrial spaces tailored to modern tenants' needs.

Features such as 51 truck doors, 32-foot clear heights, and electric vehicle charging stations cater to contemporary logistics requirements.

What’s next: Completion of the shell buildout is expected in late 2024 or the first quarter of 2025, with LGE Design Group and LGE Design Build overseeing architectural and general contracting duties.

The bottom line: Thunderbird Commerce Park marks a significant milestone in addressing the scarcity of industrial space in the Valley.

Its strategic location and state-of-the-art features position it as a key player in the region's economic growth and industrial expansion.

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📊 Housing Market Data Shows 5.5% Annual Increase in Home Prices

Driving the news: CoreLogic's latest Home Price Insights (HPI) report for February 2024 reveals a steady 5.5% increase in home prices year over year as of December 2023.

Notably, this period saw no states experiencing a decline in home prices.

Details: The report, which includes data up to December 2023 and forecasts through December 2024, shows a slight month-over-month decrease in home prices by -0.1% from November to December 2023.

However, CoreLogic anticipates a modest month-over-month decline of -0.2% from December 2023 to January 2024, with a year-over-year increase of 2.8% by December 2024.

Why it matters: The continued growth in home prices underscores a strong housing market buoyed by a robust job market.

With the U.S. Bureau of Labor Statistics reporting 353,000 new jobs in January 2024, demand for housing remains high amidst a low supply.

The big picture: Northeastern states led the charge with the highest annual gains, reflecting a market recovery with no year-over-year declines reported for the first time since late 2022.

This resilience is attributed to a strong job market and constrained housing inventory, despite potential seasonal impacts from last winter's mortgage rate increases.

By the numbers: Rhode Island, New Jersey, and Connecticut topped the list of states with the largest annual home price increases, boasting gains of 13.3%, 11.3%, and 10.5%, respectively.

Between the lines: CoreLogic's Market Risk Indicator points to certain areas, such as Spokane–Spokane Valley, WA, facing over a 70% probability of price declines in the next 12 months, signaling potential market adjustments ahead.

What’s next: Despite projections of slowing appreciation, home prices are expected to reach new highs leading into the spring buying season, driven by pent-up demand and ongoing job and wage growth.

The bottom line: This report offers crucial insights for understanding current trends and future projections in the housing market, serving as a valuable tool for stakeholders looking to navigate the evolving landscape.

📊 Market Insights

The housing market in Phoenix is somewhat competitive due to inventory being so low. Here’s what the data is telling us this month:

Data shows that home prices are up 6.4% compared to last year.
The median sales price for Phoenix homes is $430K.
The hottest homes are getting multiple offers and spending ~23 days on the market.

If you are looking to buy a home in this market, new construction is a great option that I highly recommend if you want to avoid competing with other offers.

You’ll want to have a good search and offer strategy when looking for existing homes and be patient because it could take a while to find the right one at your desired price point.