Happy Thursday!

We have several great updates about the Phoenix area this week.

A former semiconductor campus is being rezoned for more manufacturing use, and all of Arizona is going to benefit from a federal agency being revived!

We are also taking a look at some predictions for the real estate market in 2024.

— Josh

🏗️ Phoenix Paves the Way For New Manufacturing Facility

Driving the news: The city of Phoenix is moving forward with a major rezoning of the former Motorola and Onsemi manufacturing campus, paving the way for redevelopment by Baker Development Corp.

Details: Situated near Sky Harbor International Airport, the property offers unique advantages such as Foreign Trade Zone potential, access to housing, labor, amenities, and substation-level power.

The redeveloped campus could offer 1.5 to 2 million square feet of space, signaling a substantial economic opportunity for the region.

The Camelback East Village planning committee gave initial approval on March 5 to rezone 67 acres of the site. The planning commission and City Council are expected to vote on the rezoning and general plan amendment in April and June, respectively.

If approved, the site will be designated for a future corporate campus with industrial, commercial, and commerce park uses.

Why it matters: The rezoning marks a significant step in the redevelopment of the historic semiconductor campus, which was built in the 1950s.

It presents an opportunity to revitalize the area and attract major employers in technology and advanced manufacturing.

What's next: Baker Development is in discussions with potential companies to occupy the site. Demolition of the entire campus is underway to prepare for a single user.

The bottom line: The rezoning of the former Motorola and Onsemi campus represents a significant opportunity for Phoenix to attract major employers and revitalize a historic industrial site.

💪 EDA Set to Grow Phoenix Infrastructure and Economy

Driving the news: The re-establishment of the federal Economic Development Administration (EDA) (which was last active nearly 20 years ago), has the potential to significantly boost growth in Arizona and the Phoenix region.

Details: The Economic Development Reauthorization Act of 2024, recently passed by the U.S. Senate Environment and Public Works subcommittee, aims to modernize the EDA's core programs.

This includes the ONSHORE Act, which would help prepare shovel-ready sites for manufacturing projects and help local communities build last-mile infrastructure while mitigating economic challenges and disasters.

The legislation is also expected to expand access to several EDA programs for Arizona companies, create new workforce initiatives, and "strengthen" U.S. competitiveness for manufacturing opportunities

Why it Matters: The legislation seeks to enhance access to economic development resources, improve infrastructure, and strengthen competitiveness for manufacturing opportunities, which could have far-reaching impacts on Arizona's economy and job market.

The big picture: Phoenix recently ranked No. 1 for manufacturing growth, and has witnessed significant development with 14 major announcements since 2020, promising nearly 15,500 jobs in manufacturing projects exceeding $100 million each.

Between the Lines: The bill emphasizes the importance of site readiness in attracting companies to the region, particularly in advanced manufacturing, highlighting the role of the EDA in fostering equitable economic advancement across communities.

What’s Next: The reauthorization of the EDA could align with other federal initiatives supporting major projects like semiconductor factories, offering incentives and workforce development programs to drive economic growth and innovation.

The Bottom Line: The re-establishment of the EDA presents an opportunity to revitalize distressed communities, enhance infrastructure, and stimulate economic growth across Arizona.

This will further solidify the state as a hub for innovation and opportunity in manufacturing and beyond.

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📈 100+ Housing Experts See Increased Home Price Growth and 6% Mortgage Rates in 2024

Driving the news: Over 100 housing experts predict a rise in home prices and foresee a median 6% mortgage rate by the end of 2024, as per the Q1 2024 Fannie Mae Home Price Expectations Survey.

Details: The survey, in partnership with Pulsenomics, LLC, involved 114 experts who anticipate home price growth of 3.8% in 2024, an increase from previous projections.

These expectations align with a predicted decline in mortgage rates to 6%.

Why it matters: The revised home price growth forecasts highlight the market's resilience amid fluctuating mortgage rates and ongoing housing supply shortages.

The big picture: Economic factors like mortgage rates and housing inventory play pivotal roles in shaping the real estate market's trajectory.

By the numbers: The survey shows an upward revision in home price growth from 2.4% to 3.8% for 2024 and a significant shift in experts seeing higher upside risks to their forecasts.

Between the lines: The experts' outlook hinges on both the anticipated easing of mortgage rates and persistent supply constraints, fueling price growth.

What’s next: With mortgage rates expected to stabilize around 6%, the market may witness sustained home price increases, although affordability issues remain a concern.

The bottom line: The housing market is poised for continued growth, but the balance of mortgage rates and supply challenges will dictate the pace and scale of changes.

📊 Market Insights

The housing market in Phoenix is heating up as we get close to spring.

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.

📰 In other news

• Phoenix airport gets another new international flight. Here's where you can go for $89

• Arizona Coyotes cleared to bid on north Phoenix land for new arena

• Rocket seen in Phoenix night sky

That’s all for today, I hope you have an incredible week!

If there’s ever anything you need:

• a custom market or home value report

• a home services list for a reliable contractor or services professional

• feedback or a professional opinion on a home project

Just let me know! I’m here to help with all your home needs.

Talk soon,

Josh Zuniga