By Jaki Underwood, Editor-in-Chief
It’s not just any real estate wave, but a unique tidal surge sweeping the Phoenix metro area. The TSMC semiconductor plant, a colossal $40 billion venture, is not a mere economic ripple. It’s a rare force of nature that is set to redefine the housing landscape of the region for the foreseeable future.
The 85085 ZIP code is ground zero, housing the massive construction site. The surge has already begun, with TSMC employees swiftly purchasing the limited 91 listings. This is a seller’s paradise, with property values potentially skyrocketing by 20% or more annually over the next few years as chip-makers compete for the limited supply.
But the TSMC tide won’t stop there. Its powerful currents will raise all boats across the Valley’s northern reaches from Peoria to Mesa. Residential developers like Lennar, Mattamy, and Brookfield are reading the waters, plotting thousands of new homes to supply the estimated 50,000 jobs TSMC will spawn. When those streams of new residents converge, prices will rise like a rising sea level.
We’ve seen this effect before with major corporate campuses turned economic powerhouses. Just look at the high-value eddies forming around giants like Apple, Google, Amazon, and more, as employee demand for short commutes drives prices skyward in surrounding neighborhoods.
At a median of $450,000, Phoenix home values may seem frothy to some after cresting at $470,000 last year. But that number will likely prove an outgoing low tide as TSMC’s gravitational pull builds. Current homeowners in the tsunami’s path essentially hold a call option on explosive future pricing – why wouldn’t they exercise it and stay rigged? This stability and long-term potential of the Phoenix real estate market should provide a sense of security and confidence to potential investors.
As a cyclical force, the semiconductor industry provides excellent opportunities for forward-thinking investors. With Arizona’s business-friendly environment and TSMC’s unparalleled $40 billion commitment, the Phoenix region could be the ideal location to ride this wave for the next decade and beyond.
