The American Southwest, traditionally a region of expansive single-family homes, is undergoing a transformation. Migration patterns have seen a mass influx of new residents into Arizona, New Mexico, Texas, Florida from over the Mexico border and from California. These changes have put pressure on the housing market, making some Southwest markets among the hottest in the country for real estate and development. To accommodate the demand for not just new, but affordable housing, states and localities have updated building codes and zoning regulations to catalyze development in desert cities, leading to development and construction based on vertical living, rather than the traditional sprawling home building previously popular in that region.
Rising to Meet Housing Challenges
Albuquerque, Santa Fe, Scottsdale, Phoenix, and similar cities across the Southwest are responding to a national housing shortage by embracing denser development. Changes to building and zoning laws are making it easier to construct multifamily buildings, thereby increasing housing availability and encouraging sustainable urban growth.
Constraints to Building More Affordable Housing Units
Many municipalities across the country have zoning laws upheld by rigid not-in-my-back-yard (NIMBY) sensibilities and community groups that bar certain sorts of residences or businesses from being built near neighborhoods in the interest of maintaining property values. However, in areas where demand for affordable housing is high and climbing, communities are seeing the need for more and affordable housing supersede any pushback.
Sustainable Solutions for Urban Expansion
Efforts to promote higher-density living are not just about addressing housing shortages; they’re also aimed at reducing the environmental footprint of urban areas. By concentrating housing, cities like Albuquerque and Santa Fe in New Mexico hope to decrease reliance on cars and mitigate energy and water use.
The Momentum Behind Multifamily Development
Significant rent growth and demographic changes have been the primary driver for the surge in multifamily projects. The demographic shifts in the Southern United States, particularly in Arizona, reflect a complex interplay of factors including migration, aging, and changing household compositions. These trends have significant implications for the state’s economy, housing market, social services, and political landscape. Amendments to state and city building codes have facilitated the rise of taller, denser residential buildings, reflecting a shift in housing dynamics.
Contributors to Regional Growth and Demand for Housing in Southwest
Arizona, in particular, is one of the fastest-growing states in the U.S., driven by both domestic migration from other states and international immigration. People are attracted by the state’s economy, job opportunities, climate, and lifestyle. This rapid growth is particularly evident in metropolitan areas like Phoenix, Tucson, and Scottsdale. Arizona is also a popular destination for retirees who want to escape the cold northern climates in the winter.
Diversity Increasing in American Southwest
The demographic composition of Southwestern states is becoming more ethnically and racially diverse. The Hispanic or Latino population, in particular, has grown significantly and is expected to continue to rise, influencing various aspects of society including education, politics, and the economy.
Household Structures Influencing Demand for Smaller, More Communal Living Arrangement
There is a trend toward more varied household structures, including single-person households, cohabiting couples, and multigenerational living arrangements. This shift is altering housing demand, with a growing need for a wider range of housing types to accommodate different family compositions.
Demographic Trends Require Strategic Planning for Future, including Infrastructure
The various trends bringing residents to the Southwest are shaping the way states and cities plan for the future, including considerations for infrastructure, transportation, housing, healthcare, and education systems to meet the changing needs of its residents. At the top of the list is affordable housing for future and current residents.
Architectural Evolution
Along with the demographics, the architectural landscape of the Southwest is evolving, with a new aesthetic of multistory, wood-framed buildings winning bids over concrete podiums. This approach allows for greater density within urban footprints, marking a departure from traditional low-rise constructions.
Navigating a Shifting Market
The expansion of the multifamily housing sector has seen a recent slowdown due to economic pressures, yet the demand for housing remains high. This situation suggests a potential rebound in construction activity as market conditions stabilize.
Fostering Community Through Design
The multifamily development trend extends beyond just providing housing; it aims to create vibrant communities. Residents can find value in the social connections and communal experiences these developments foster, illustrating the multifaceted appeal of denser living environments.
Policy Shifts Supporting Diverse Housing
Cities are actively revising housing policies to encourage multifamily development. Santa Fe’s adjustment of its housing ordinance and building code to promote higher-density projects is indicative of a broader recognition of the need for diverse housing solutions.
Looking Ahead: The Future of Southwest Urbanism
As the American Southwest embraces vertical living, the region is redefining its approach to urban development. This transition towards denser, more sustainable communities signals a new chapter in addressing the housing, environmental, and social challenges of the 21st century.
