Sixteen housing projects in Chandler are stalled

At least 16 residential projects in Chandler have received permits, but developers haven’t begun construction.

One of those projects was entered into Chandler’s development pipeline back in 2016.

The city’s planning administrator, Kevin Mayo, said the reasons developers have been unable or unwilling to build vary greatly. However, some common obstacles over the past five years have been financing and the availability of materials and labor.

“Interest rates are higher. There’s a receding amount of financing available for them. Construction loan rates have doubled. And demand for things like concrete and steel has gone way up,” he said.

Mayo said large Valley projects, such as Intel’s expansion in Chandler or initial construction of the Taiwan Superconductor Manufacturing Co.’s north Phoenix facilities, have put a strain on materials ordering and construction labor in the Southwest.

“Developers are reluctant to hire and commit to a completion timeline if they can’t get concrete or steel,” he said.

On the demand side, Mayo said, only five of the projects — and 129 total homes — on the “approved” list are single-family units. The rest of the 2,269 units on hold are multifamily projects.

 

Source: https://www.yourvalley.net/chandler-independent/stories/sixteen-housing-projects-in-chandler-approved-not-built,536444

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