"Interestingly, I find no mention of this latest growth study in any of the local papers."

That is truly weird!

The growth explains why metro Phoenix will be one of the first markets to bounce back.

Hi Jay, Thanks for the reply. I've read a few of your previous posts today and really enjoyed them (especially loved the desert pics). FWIW, I absolutely agree that "affordable" is a subjective term and that median wage earners always have the option of buying below median priced homes (whether or not they are willing to is another question entirely). As someone who follows the AZ real estate market (and anything else pertinent to the state) with great interest, I'll just be happy when prices return to a sustainable level - when either wages (and rents) come up or prices come down. Call me old fashioned, but I consider home ownership vital to the health of the community - affecting everything from quality of schools to crime - and look forward to a return of the days when the question on potential buyers minds is overwhelmingly "Is this a good place to raise a family", rather than "How much money can I make on my speculative flip". I don't think the crazy run up over the last couple of years was good for the community and I don't think the crazy run back down will be either, but I do look forward to things eventually getting back to normal.

AZNative - thanks for stopping by and commenting! You make excellent points (BTW, Wikipedia's income numbers are very close to what I hear elsewhere). The crazy run-up over the last couple of years definitely pushed Gilbert (and much of Phoenix suburbia) into a different realm, but it is still much more affordable than many places (ie: CA, FL, NV, northeast, parts of the northwest. Coincidentally, this is were a lot of the influx into the state is coming from...).

And of course by definition, half of the homes out there are below the median value. (and yep, half are above). Ditto for income. To be "truly affordable" and hit that 3.5x number, I guess you'd have to have median income folks buying below median priced homes.

The current listings in Gilbert range in price from $126K to $3.5M. There is pretty much something for anyone. "Affordable"? That may be pushing it by the strictest definition of the word. But MANY folks we work with remark every day how "cheap" homes are here.

Often, affordibility is a matter of perspective.

While no one loves AZ more than I do, I'm not sure "affordable housing" can be considered a draw for the city. According to recent sales data, the median home price in Gilbert was between $285,000 and $330,646 depending on which zipcode you live in , during the second quarter of the year. If Wikipedia is to be believed, "The median income for a household in Gilbert was $68,032, and the median income for a family was $70,994." Most financial advisors recommend spending no more than 3.5 times annual salary to purchase a home in order to avoid financial hardship and/or potential foreclosure. This equates to a justifiable median home price of approximately $248,500, meaning that existing homes have anywhere from $36,500 to $82,200 to fall before housing prices in Gilbert become realistic, much less affordable.

Jay, I read few of your posts and they were really nice and informative. One thing is sure that each post is having something important for real estate business.

"Interestingly, I find no mention of this latest growth study in any of the local papers."

That is truly weird!

The growth explains why metro Phoenix will be one of the first markets to bounce back.

Hi Jay, Thanks for the reply. I've read a few of your previous posts today and really enjoyed them (especially loved the desert pics). FWIW, I absolutely agree that "affordable" is a subjective term and that median wage earners always have the option of buying below median priced homes (whether or not they are willing to is another question entirely). As someone who follows the AZ real estate market (and anything else pertinent to the state) with great interest, I'll just be happy when prices return to a sustainable level - when either wages (and rents) come up or prices come down. Call me old fashioned, but I consider home ownership vital to the health of the community - affecting everything from quality of schools to crime - and look forward to a return of the days when the question on potential buyers minds is overwhelmingly "Is this a good place to raise a family", rather than "How much money can I make on my speculative flip". I don't think the crazy run up over the last couple of years was good for the community and I don't think the crazy run back down will be either, but I do look forward to things eventually getting back to normal.

AZNative - thanks for stopping by and commenting! You make excellent points (BTW, Wikipedia's income numbers are very close to what I hear elsewhere). The crazy run-up over the last couple of years definitely pushed Gilbert (and much of Phoenix suburbia) into a different realm, but it is still much more affordable than many places (ie: CA, FL, NV, northeast, parts of the northwest. Coincidentally, this is were a lot of the influx into the state is coming from...).

And of course by definition, half of the homes out there are below the median value. (and yep, half are above). Ditto for income. To be "truly affordable" and hit that 3.5x number, I guess you'd have to have median income folks buying below median priced homes.

The current listings in Gilbert range in price from $126K to $3.5M. There is pretty much something for anyone. "Affordable"? That may be pushing it by the strictest definition of the word. But MANY folks we work with remark every day how "cheap" homes are here.

Often, affordibility is a matter of perspective.

While no one loves AZ more than I do, I'm not sure "affordable housing" can be considered a draw for the city. According to recent sales data, the median home price in Gilbert was between $285,000 and $330,646 depending on which zipcode you live in , during the second quarter of the year. If Wikipedia is to be believed, "The median income for a household in Gilbert was $68,032, and the median income for a family was $70,994." Most financial advisors recommend spending no more than 3.5 times annual salary to purchase a home in order to avoid financial hardship and/or potential foreclosure. This equates to a justifiable median home price of approximately $248,500, meaning that existing homes have anywhere from $36,500 to $82,200 to fall before housing prices in Gilbert become realistic, much less affordable.