The real estate market in Arizona, particularly in the metro Phoenix area, is set to change significantly. In an effort to curb overpopulation, state authorities have recently implemented a strict regulation which restricts the homebuilding in areas of rapid expansion. This news could have a large-scale effect on the Southwest’s economic landscape and real estate market.
The regulation requires that any new building in fast-growing areas needs to pass certain criteria before it can even receive approval for construction. All new buildings will also be required to adhere to certain environmental initiatives in order to better monitor developments in the area, as well as conserve existing resources and ecosystems. Consequently, developers may face significant hurdles regarding capital access because of the new regulations, causing them to forego their existing projects in the area.
Overall, these regulations could have sweeping implications for the real estate market in the Southwest. Some of the key elements of the mandate include:
• Strict criteria for new homebuilding on areas of rapid expansion
• Adherence to certain environmental initiatives to better monitor any developments in the area
• Possible capital access restrictions for developers from existing projects in the area
• Sweeping impacts to the real estate market in the Southwest
You can read this full article at: https://www.housingwire.com/articles/datadigest-water-wars-in-the-southwest/(subscription required)
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