Arizona’s housing market has been feeling the heat — not just from the sun, but from the ripple effects of wildfires both in Arizona and California.
Our state has long attracted Californians seeking less expensive housing, but the devastating Los Angeles wildfires earlier this year made finding a place to live in that region even harder, motivating more Californians to seek a home here.
“It’s not a tidal wave, but in a tight environment for housing like we have, a marginal change can have an impact on supply and demand,” said Dr. Mark Stapp, a real estate professor at Arizona State University.
When wildfire-related moves are added to labor shortages, material costs, and tariffs, the challenges for keeping housing prices affordable compound, he said.
Wildfires are also having an effect on insurance rates.
Facing growing losses from wildfires and other weather disasters, insurers around the country have been raising home insurance premiums. In fire-prone northern Arizona, some homeowners can’t find coverage at all.
What’s more: Wildfires aren’t limited to rural areas anymore, Stapp said. Now Arizona homeowners who live in denser cities are also paying for increased risk.
“Brush fires are happening near urban areas like Rio Verde, north Scottsdale and Cave Creek,” he said. “In places that bump up against protected open space, you run the risk of these fires starting there.”
While Arizona officials are working to limit the fallout, these higher costs inevitably trickle down to Arizona homeowners, and make developers more hesitant to break ground.
“Uncertainty is bad for business,” Stapp said.
