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U.S Department of Housing and Urban Development
U.S. Department of the Treasury

Spotlight on the Housing Market in:

Phoenix-Mesa-Glendale, Arizona

U.S. Department Efforts to Stabilize Development Office and Help American Homeowners
The Obama Administration’sof Housing and UrbanThe Housing |Marketof Policy Development and Research | May 2011
The Phoenix-Mesa-Glendale Metropolitan Statistical Area (MSA), which
includes Maricopa and Pinal Counties in Arizona, has been one of the
hardest hit areas in the nation following the housing market downturn.
It is also an area in which the Administration’s broad approach to
stabilizing the housing market has been very active. This bimonthly

addendum to the Administration’s housing scorecard provides a
summary of trends and conditions in the local economy and the impact
of Administration’s efforts to stabilize the housing market and help local
homeowners.

Population Growth, Employment, and
Housing Market:

Housing Crisis Has Ended Rapid
Population Growth in Phoenix
Phoenix MSA

Spotlight on the Phoenix-Mesa-Glendale, Arizona Metropolitan Statistical Area

Annual Growth Rate

The capital of Arizona, Phoenix, has on the rapid population growth
Spotlight seen Phoenix-Mesa-Glendale, Arizona Metropolitan Statistical Area
Date
Population
From Prior Date
since 2000, increasing by 28 percent – Stabilize The of 923,700Helpto almost
The Obama Administration's Efforts to a total Housing Market and -- American Homeowners - May 2011
The Obama Administration's Efforts to Stabilize The Housing Market and Help American Homeowners - May 2011
Phoenix‐Mesa‐Glendale, Arizona 
The Phoenix‐Mesa‐Glendale Metropolitan StaBsBcal Area (MSA), which consists of Maricopa and Pinal CounBes in Arizona, has been one of 
4.2 million as of April Phoenix‐Mesa‐Glendale, Arizona 
2010. Nearly two-thirds of the city’s growth is
4/1/2000
3,251,900
 
the hardest hit areas in the naBon following the housing market downturn. It is also an area in which the AdministraBon’s broad approach to 
The Phoenix‐Mesa‐Glendale Metropolitan StaBsBcal Area (MSA), which consists of Maricopa and Pinal CounBes in Arizona, has been one of the 
 
 
stabilizing the housing market has been very acBve.  This Phoenix MSA addendum to the May 2011 housing scorecard provides a concise 
due to new residents moving into the area. As hardest hit areas in the naBon following the housing market downturn. It is also an area in which the AdministraBon’s broad approach to stabilizing 
employment options
 
 
summary of local trends and condiBons in (1) the economy and housing market, (2) mortgage delinquencies and foreclosures, and (3) the 
the housing market has been very acBve.  This Phoenix MSA addendum to the May 2011 housing scorecard provides a concise summary of local 
                    [insert map] 
7/1/2007
4,175,600
3.9%
 
AdministraBon’s key efforts to stabilize the housing market and help local homeowners.  
trends and condiBons in (1) the economy and housing market, (2) mortgage delinquencies and foreclosures, and (3) the AdministraBon’s key efforts 
grew between 2004 through mid-2007, the population increased by
                    [insert map] 
to stabilize the housing market and help local homeowners.  
an average of 127,400, or 3.9 percent, annually. In 2007, as the
4/1/2010
4,192,900
0.2%
housing crisis began and the local economy weakened, population
growth slowed to an average of only 6,300, or 0.2 percent, annually.
Source: Census Bureau (2000 Decennial, 2007 CPS, and 2010 Decennial)
Housing Crisis Has Ended Rapid
 Population Growth in Phoenix

The Phoenix MSA Economy and Housing Market:
The city of Phoenix is the capital of Arizona and the largest city in the MSA. The populaBon of the MSA has 
The Phoenix MSA Economy and Housing Market:

Housing Crisis Has Ended Rapid

The city of Phoenix is the capital of Arizona and the largest city in the MSA. The populaBon of the MSA has 
 Population Growth in Phoenix
grown rapidly since 2000, increasing by a total of 923,700, or 28 percent, to almost 4.2 million as of April 
Annual Growth Rate From 
grown rapidly since 2000, increasing by a total of 923,700, or 28 percent, to almost 4.2 million as of April 
2010. Net in‐migraBon accounted for two‐thirds of this growth. Rapid employment growth from 2004 
Annual Growth Rate From 
Date
Phoenix MSA Population
Prior Date
2010. Net in‐migraBon accounted for two‐thirds of this growth. Rapid employment growth from 2004  3,251,900
through mid 2007 resulted in the MSA populaBon increasing by an average of 127,400, or 3.9 percent, 
Date
Phoenix MSA Population
Prior Date
                ‐
4/1/00
                            
through mid 2007 resulted in the MSA populaBon increasing by an average of 127,400, or 3.9 percent,  4,175,600
annually. As the housing crisis began in 2007 and the local economy weakened, populaBon growth slowed 
                ‐
4/1/00
                            3,251,900
7/1/07
                            
3.9%
annually. As the housing crisis began in 2007 and the local economy weakened, populaBon growth slowed 
to an average of only 6,300, or 0.2 percent, annually.  
7/1/07
                            4,175,600
3.9%
4/1/10
                            4,192,900
0.2%
to an average of only 6,300, or 0.2 percent, annually.  
 
Source: Census Bureau (2000 Decennial, 2007 CPS, and 2010 Decennial)
4/1/10
                            4,192,900
0.2%
 
Source: Census Bureau (2000 Decennial, 2007 CPS, and 2010 Decennial)

pre-recession levels with construction jobs accounting for almost half
of local job losses. The average unemployment rate was 8.8 percent
during the 12 months ending March 2011, the same as a year ago. In
comparison, the national average unemployment rate during the same
The local economy in the Phoenix MSA is primarily based on the trade, professional and business services, government, and educaBon and health services sectors. AYer several years of strong growth 
Since the third quarterThe local economy in the Phoenix MSA is primarily based on the trade, professional and business services, government, and educaBon and health services sectors. AYer several years of strong growth in the  9.7 percent a
of 2010, the Phoenix economy has shown some
in the mid‐2000s, employment (nonfarm payrolls) declined from the fourth quarter of 2007 through the third quarter of 2010. Since the third quarter of 2010, the economy in the Phoenix MSA  percent, down slightly from
period was higher at 9.4
started to show signs of improvement. As  of the first quarter of 2011, employment totaled 1.7 million, up 0.6 percent compared with a year ago and slightly below the naBon’s job growth rate of 1 
signs of improvement.mid‐2000s, employment (nonfarm payrolls) declined from the fourth quarter of 2007 through the third quarter of 2010. Since the third quarter of 2010, the economy in the Phoenix MSA started to show 
As of March 2011, employment totaled 1.7
year ago.
signs of improvement. As  of the first quarter of 2011, employment totaled 1.7 million, up 0.6 percent compared with a year ago and slightly below the naBon’s job growth rate of 1 percent during the same 
percent during the same period. Despite recent employment gains in the MSA, current payrolls remain 211,700 jobs below the pre‐recession level of three years ago with almost one‐half of job losses 
period. Despite recent employment gains in the MSA, current payrolls remain 211,700 jobs below the pre‐recession level of three years ago with almost one‐half of job losses in the MSA occurring in the 
in the MSA occurring in the construcBon sector. The average unemployment rate was 8.8 percent during the 12 months ending March 2011, the same as a year ago. In comparison, the naBonal 
million -- up 0.6 percent compared with a year ago but slightly below
construcBon sector. The average unemployment rate was 8.8 percent during the 12 months ending March 2011, the same as a year ago. In comparison, the naBonal average unemployment rate during the 
average unemployment rate during the same period was higher at 9.4 percent, down slightly from 9.7 percent a year ago.  
Unemployment Rate Remains High, But Has Leveled 
same period was higher at 9.4 percent, down slightly from 9.7 percent a year ago.  
 
The home sales market remains soft in Phoenix. Existing home sales
the nation’s job growth rate of 1 percent during the same period.
Monthly Unemployment Rate (Percent) 
 
 
the
Despite recent employment gains, payrolls remain 211,700 jobs below rose in 2008 and 2009, though12  boost was due in part to sales of
After strong growth in the mid-2000s, employment began to drop in
the fourth quarter of 2007 and continued a steep decline through the
third quarter of 2010.

10 

Job Market CondiOons are Stabilizing 

8 

Quarterly Nonfarm Employment 

Job Market Conditions are Stabilizing
2,000 

Unemployment Rate Remains High, But Has Leveled
6 

150 

Monthly Unemployment Rate (Percent) 

Quarterly Nonfarm Employment 

4 

145 
1,900 

Thousands 

1,800 

130 

140 

1,600 

1,800 

135 

145 

1,700 

135 

12 

0 

This Chart will be updated 

8 

Phoenix MSA 

125 

4 

NaBon (right axis) 
125 

2 

120 

NaBon (Seasonally Adjusted) 

MSA Data Not Seasonally Adjusted 
Source: Bureau of Labor StaBsBcs 

6 

120 

130 
1,700 

 

2 

10 

140 

Millions 

1,900 

150 

Millions 

Thousands 

2,000 

0 

Year and Quarter 
Phoenix MSA 
Seasonally Adjusted Data  
Source: Bureau of Labor  StaBsBcs 
 

1,600 

Year and Quarter 
Phoenix MSA 
Seasonally Adjusted Data  
Source: Bureau of Labor  StaBsBcs 
 

NaBon (right axis) 

Phoenix MSA (Not Seasonally Adjusted) 
 

Source: Bureau of Labor StaBsBcs 

Spotlight on Phoenix MSA | Page 1

NaBon (Seasonally Adjusted) 

U.S Department of Housing and Urban Development
U.S. Department of the Treasury

Spotlight on the Phoenix-Mesa-Glendale, Arizona Metropolitan Statistic

Spotlight on the Phoenix-Mesa-Glendale, Arizona Metropolitan Statistical Area
The home sales market remains soP in Phoenix. Unlike in the naQon, 
exisQng home sales in Phoenix rose in both 2008 and 2009 in part due to distressed sales (foreclosure and 
short sales).   Growth in home sales leveled off in 2010. During the first quarter of 2011, exisQng home sales 
once again increased by 6 percent compared with the first quarter of 2010, although new home sales 
declined 24 percent during this period.  Distressed sales currently represent 56 percent of all exisQng homes 
sales in the MSA, compared with 35 percent naQonally. The high proporQon of distressed sales has also kept 
Phoenix home prices depressed. The CoreLogic repeat‐sales house price index shows Phoenix single‐family 
home prices declined by 49 percent compared with only 31 percent naQonally between June 2006 and April 
2009.  Phoenix home sales prices showed signs of stabilizing during most of 2009 and the first half of 2010, 
although the sales market remains fragile. The rental market remained soP and apartment vacancy rates 
remained above the naQonal average during the 12 months ending March 2011.  However, the local rental 
market did show signs of improvement during the past year as Reis  Inc. reported that the Phoenix apartment 
vacancy rate fell to  8.9 percent in the  first quarter of 2011, down from 12.1 percent a year earlier, while the 
average rent, at $755, was up 0.8 percent from a year ago. NaQonally, the vacancy rate over this period 
improved to 6.2 percent from 8.0 percent, while the average rent increased 1.9 percent to $1,047. 

The home sales market remains soP in Phoenix. Unlike in the naQon, 
exisQng home sales in Phoenix rose in both 2008 and 2009 in part due to distressed sales (foreclosure and 
short sales).   Growth in home sales leveled off in 2010. During the first quarter of 2011, exisQng home sales 
once again increased by 6 percent compared with the first quarter of 2010, although new home sales 
declined 24 percent during this period.  Distressed sales currently represent 56 percent of all exisQng homes 
sales in the MSA, compared with 35 percent naQonally. The high proporQon of distressed sales has also kept 
Phoenix home prices depressed. The CoreLogic repeat‐sales house price index shows Phoenix single‐family 
home prices declined by 49 percent compared with only 31 percent naQonally between June 2006 and April 
2009.  Phoenix home sales prices showed signs of stabilizing during most of 2009 and the first half of 2010, 
although the sales market remains fragile. The rental market remained soP and apartment vacancy rates 
remained above the naQonal average during the 12 months ending March 2011.  However, the local rental 
market did show signs of improvement during the past year as Reis  Inc. reported that the Phoenix apartment 
vacancy rate fell to  8.9 percent in the  first quarter of 2011, down from 12.1 percent a year earlier, while the 
average rent, at $755, was up 0.8 percent from a year ago. NaQonally, the vacancy rate over this period 
improved to 6.2 percent from 8.0 percent, while the average rent increased 1.9 percent to $1,047. 

U.S. Department Efforts to Stabilize Development Office and Help American Homeowners
The Obama Administration’sof Housing and UrbanThe Housing |Marketof Policy Development and Research | May 2011

distressed homes -- foreclosures and short sales – which currently represent
Phoenix Price Declines More Severe Than in Nation; Market Remains Fragile
56 percent of all existing homes sales in the MSA, compared with 35 percent
Housing Price Index for Single‐Family Homes (Jan 2000 = 100) 
nationally. During the first quarter of 2011, existing home sales increased
Rental Vacancy Rates Remain Above The Nation,
Phoenix Price Declines More Severe Than in Nation; Market Remains Fragile
But Improved Since January 2010
by 6 percent compared with the first quarter of 2010, while new home sales
Housing Price Index for Single‐Family Homes (Jan 2000 = 100) 
240 
Quarterly Apartment Rental Vacancy Rates (Percent) 
declined 24 percent during this period. The high proportion of distressed
220 
13 
240  has kept Phoenix home prices depressed. The CoreLogic repeat-sales
sales
200 
12 
Spotlight on the Phoenix-Mesa-Glendale, Arizona Metropolitan Statistical Area
220 
house price index shows that Phoenix single-family home prices declined by
11 
180 
200 
49 percentThe home sales market remains soP in Phoenix. Unlike in the naQon, 
between June 2006 and April 2009, compared with only 31 10 
160 
exisQng home sales in Phoenix rose in both 2008 and 2009 in part due to distressed sales (foreclosure and 
180 
percent nationally. Local home prices showed signs of stabilizing during 9 
short sales).   Growth in home sales leveled off in 2010. During the first quarter of 2011, exisQng home sales 
140 
once again increased by 6 percent compared with the first quarter of 2010, although new home sales 
160  of 2009 and the first half of 2010, but the overall sales market remains
most
8 
declined 24 percent during this period.  Distressed sales currently represent 56 percent of all exisQng homes 
120 
140 
fragile. As sales in the MSA, compared with 35 percent naQonally. The high proporQon of distressed sales has also kept 
of March 2011, the rental market remains soft with apartment 7 
100 
Phoenix home prices depressed. The CoreLogic repeat‐sales house price index shows Phoenix single‐family 
6 
120 
vacancy rates at 8.9 percent in the first quarter, down from 12.1 percent
home prices declined by 49 percent compared with only 31 percent naQonally between June 2006 and April 
2009.  Phoenix home sales prices showed signs of stabilizing during most of 2009 and the first half of 2010, 
5 
100 
a year earlier and still above the national average. The average rent
although the sales market remains fragile. The rental market remained soP and apartment vacancy rates 
remained above the naQonal average during the 12 months ending March 2011.  However, the local rental 
Phoenix MSA 
NaQon 
for a Phoenix apartment, at $755, was up 0.8 percent from a year ago.
market did show signs of improvement during the past year as Reis  Inc. reported that the Phoenix apartment 
Year and Quarter 
Source: CoreLogic 
Nationally,vacancy rate fell to  8.9 percent in the  first quarter of 2011, down from 12.1 percent a year earlier, while the 
the vacancy rate over this period improved to 6.2 percent from
Phoenix MSA 
NaQon 
average rent, at $755, was up 0.8 percent from a year ago. NaQonally, the vacancy rate over this period 
Phoenix MSA 
NaQon 
improved to 6.2 percent from 8.0 percent, while the average rent increased 1.9 percent to $1,047. 
8.0 percent, while the average rent increased 1.9 percent to $1,047.
Source: CoreLogic 
Source: Reis Inc. 
Existing and New Single-Family Home Sales:
Phoenix Compared to the Nation
Annual Home Sales (thousands)  
Rental Vacancy Rates Remain Above The Nation,
Share of Distressed Mortgages Remains High, But Has Leveled
But Improved Since January 2010
140 

Existing and Declines More Severe Than in Nation; Market Remains Fragile
Phoenix PriceNew Single-Family Home Sales:
Phoenix Compared to the Nation
Housing Price Index for Single‐Family Homes (Jan 2000 = 100) 

Spotlight on the Phoenix-Mesa-Glendale, Arizona Metropolitan Statistical Area
120 
7,000 

100 
80 
60 
40 
20 
0 

3,000 

9 
40 

2,000 

6 

8 
20 
7 

1,000 

2 

0 

0 

4 
2 
0 

0 
6 

6 

2003 

2004 

NaQon ExisQng (Right Axis) 

5,000 
4,000 

Phoenix homeowners have struggled with some of the highest levels of
3,000 
mortgage delinquency and foreclosure in the nation. As of March 2011, 2,000 
40 
100 
Maricopa County had the 4th largest number of mortgages in the nation that
20 
1,000 
were 90 days delinquent, Delinquencies and Foreclosures:   
or in the process of foreclosure, while Pinal County
Trends in Mortgage
0 
0 
Phoenix MSA 
The Phoenix MSA has experienced among the highest levels of mortgage delinquency and foreclosure in  2010 
2003 
2004 
2005 
2007  NaQon 
2008 
had the 14th highest percentage in the 2006 
nation compared with2009 
counties
the naQon. As of March 2011, Maricopa County had the 4th greatest number of mortgages in the naQon 

Nation

0.9%

Since April 1, 2009

215,046

0.2%

4,000 

6.0%

2005 

2006 

2007 

1.5%

Trends in Mortgage Delinquencies and Foreclosures:   
NaQon New (Right Axis) 
Phoenix MSA ExisQng 

2009 

NaQon 

NaQon 

Foreclosure Completion Rates in Phoenix Outpace The Nation
First Quarter 2011
Since April 1, 2009
Area

12 
10 

Foreclosure 
Completions

Foreclosure Rate 
(Percent)

Foreclosure 
Completions

Phoenix MSA                        15,067 
0.9%
                            104,542 
Nation 
                   215,046 
0.2%
                         1,931,681 
Note:  Foreclosure Rates As Percent of All Housing Units
           Data through March 2011 for Foreclosures
Source: Realty Trac and Census Bureau

4 

1,000 

2 
0 

2010 

The Phoenix MSA has experienced among the highest levels of mortgage delinquency and foreclosure in 
Note: Foreclosure Rates as Percent of All Housing Units; Data through March
the naQon. As of March 2011, Maricopa County had the 4th greatest number of mortgages in the naQon 
Sources: Arizona State University Realty Studies, HUD/Census  Bureau, and NaQonal AssociaQon of Realtors 
that were 90+ days delinquent, in foreclosure, or REO, while Pinal County has the 14th highest percentage 
2011 for Foreclosures
in the naQon compared with counQes with the same or more total mortgages, according to LPS Applied 
Source: Realty Trac and Census Bureau
AnalyQcs. NegaQve equity mortgages comprise 56 percent of all mortgages in the Phoenix area, more than 
NaQon ExisQng (Right Axis) 

Phoenix MSA 

Mortgages 90+ Days Delinquent (Percent) 

14 

6 

2008 

Phoenix MSA New 

Rental Vacancy Rates Remain Above The Nation,
But Improved Since January 2010

16 

0 
2004 

Phoenix MSA ExisQng 

AnalyQcs. NegaQve equity mortgages comprise 56 percent of all mortgages in the Phoenix area, more than 
twice the naQonal rate of 23 percent, according to CoreLogic. As a result in part to improving economic 
condiQons and to the efforts of numerous state and local organizaQons and municipaliQes in partner ship 
Phoenix MSA 
NaQon 
with the federal government, the number of mortgages currently in foreclosure or at risk has decreased 
Source: CoreLogic 
during the past year. The number of mortgages that were 90+ days delinquent, in foreclosure, or REO 
declined from 103,200 in March 2010 to 81,900 in March 2011.  
Share of Distressed Mortgages Remains High, But Has Leveled

3,000 
2,000 

0 
2003 

NaQon New (Right Axis) 

with the same or more total mortgages, according to LPS Applied
16 
11 
Analytics. More than half of all mortgages in the Phoenix area (56%)
14 
10 
are 12  negative equity -- more than twice the national rate (23%),
in
9 
8 
10 
according to CoreLogic. However, due in part to improving economic
7 
8 
conditions and to the efforts of numerous state and local organizations
6 
and 6 
municipalities in partnership with the federal government,
5 
4 
Trends in Mortgage Delinquencies and Foreclosures:   
the number of mortgages at risk of foreclosure (90 or more days
The Phoenix MSA has experienced among the highest levels of mortgage delinquency and foreclosure in 
2 
the naQon. As of March 2011, Maricopa County had the 4th greatest number of mortgages in the naQon 
delinquent or in the process of foreclosure) declined during the past
Year and Quarter 
0 
that were 90+ days delinquent, in foreclosure, or REO, while Pinal County has the 14th highest percentage 
in the naQon compared with counQes with the same or more total mortgages, according to LPS Applied 
year from 103,200 in March 2010 to 81,900 in March 2011.
Phoenix MSA 
NaQon 

8 

1.5%

1,931,681

2010 

Mortgages 90+ Days Delinquent (Percent) 

7,000 

Foreclosure 6,000 
5,000 
Rate

104,542
6.0%

2009 

Source: Reis Inc. 

Foreclosure Completion Rates in Phoenix Outpace The Nation

15, 067

2008 

12 

6,000 

Phoenix MSA                        15,067 
0.9%
                            104,542 
60 
Nation 
                   215,046 
0.2%
                         1,931,681 
Note:  Foreclosure Rates As Percent of All Housing Units
40 
           Data through March 2011 for Foreclosures
20 
Source: Realty Trac and Census Bureau

2007 

Quarterly Apartment Rental Vacancy Rates (Percent) 

180 
100 
160 
80 
140 
60 
120 

Phoenix
MSA

2006 

Share of Distressed Mortgages Remains High, But Has Leveled

13 

Foreclosure 
Rate (Percent)

2005 

4 

5 

Source: CoreLogic  Source: Reis Inc. 

200 
120 

10 
8 

Phoenix MSA 

7,000 

Foreclosure 
Completions

12 

10 
60 

Annual Home Sales (thousands)  

Foreclosure Rate 
(Percent)

14 

Year and Quarter 
Sources: Arizona State University Realty Studies, HUD/Census  Bureau, and NaQonal AssociaQon of Realtors 

Source: CoreLogic 
that were 90+ days delinquent, in foreclosure, or REO, while Pinal County has the 14th highest percentage 
NaQon ExisQng (Right Axis) 
NaQon New (Right Axis) 
Phoenix MSA ExisQng 
Phoenix MSA New 
in the naQon compared with counQes with the same or more total mortgages, according to LPS Applied 
AnalyQcs. NegaQve equity mortgages comprise 56 percent of all mortgages in the Phoenix area, more than 
Sources: Arizona State University Realty Studies, HUD/Census  Bureau, and NaQonal AssociaQon of Realtors 
twice the naQonal rate of 23 percent, according to CoreLogic. As a result in part to improving economic 
Existing and New Single-Family Home Sales:
condiQons and to the efforts of numerous state and local organizaQons and municipaliQes in partner ship 
with the federal government, the number of mortgages currently in foreclosure or at risk has decreased 
Phoenix Compared to the Nation
during the past year. The number of mortgages that were 90+ days delinquent, in foreclosure, or REO 
Annual Home Sales (thousands)  
declined from 103,200 in March 2010 to 81,900 in March 2011.  

16 

8 

220 
140 

Foreclosure 
Completions

Sour

10 

Trends in Mortgage Delinquencies and
Foreclosures:

Area
80 

5 

4,000 

Existing and New Single-Family Home Sales:
Phoenix Compared to the Nation

120 
Foreclosure
Foreclosure
Foreclosure
Foreclosure Completion Rates in Phoenix Outpace The Nation
First Quarter 2011
Since April 1, 2009 ons
100 
Completions
Rate
Completi

6 

6,000 

Housing Price Index for Single‐Family Homes (Jan 2000 = 100) 

Area

7 

80 
11 

Phoenix Price Declines More Severe Than in Nation; Market Remains Fragile

First Quarter 2011

8 

5,000 

Source: CoreLogic 
Sources: Arizona State University Realty Studies, HUD/Census  Bureau, and NaQonal AssociaQon of Realtors 

140 

9 

13 
100 
12 

NaQon New (Right Axis) 
Phoenix MSA ExisQng 
Phoenix MSA New 
Phoenix MSA 
NaQon 

240 

10 

12 

The home sales market remains soP in Phoenix. Unlike in the naQon, 
6,000 
220 
exisQng home sales in Phoenix rose in both 2008 and 2009 in part due to distressed sales (foreclosure and 
short sales).   Growth in home sales leveled off in 2010. During the first quarter of 2011, exisQng home sales 
5,000 
200 
once again increased by 6 percent compared with the first quarter of 2010, although new home sales 
declined 24 percent during this period.  Distressed sales currently represent 56 percent of all exisQng homes 
4,000 
180 
sales in the MSA, compared with 35 percent naQonally. The high proporQon of distressed sales has also kept 
Phoenix home prices depressed. The CoreLogic repeat‐sales house price index shows Phoenix single‐family 
3,000 
160 
home prices declined by 49 percent compared with only 31 percent naQonally between June 2006 and April 
2009.  Phoenix home sales prices showed signs of stabilizing during most of 2009 and the first half of 2010, 
2,000 
140 
although the sales market remains fragile. The rental market remained soP and apartment vacancy rates 
remained above the naQonal average during the 12 months ending March 2011.  However, the local rental 
120 
1,000 
market did show signs of improvement during the past year as Reis  Inc. reported that the Phoenix apartment 
100 
vacancy rate fell to  8.9 percent in the  first quarter of 2011, down from 12.1 percent a year earlier, while the 
0 
2003  average rent, at $755, was up 0.8 percent from a year ago. NaQonally, the vacancy rate over this period 
2004 
2005 
2006 
2007 
2008 
2009 
2010 
improved to 6.2 percent from 8.0 percent, while the average rent increased 1.9 percent to $1,047. 
NaQon ExisQng (Right Axis) 

11 

14 

16 

240 
120 

12 

7,000 

Mortgages 90+ Days Delinquent (Percent) 
Quarterly Apartment Rental Vacancy Rates (Percent) 

Annual Home Sales (thousands)  

140 

13 

Phoenix MSA New 

Phoenix MSA 
Source: CoreLogic 

twice the naQonal rate of 23 percent, according to CoreLogic. As a result in part to improving economic 
condiQons and to the efforts of numerous state and local organizaQons and municipaliQes in partner ship 
with the federal government, the number of mortgages currently in foreclosure or at risk has decreased 
during the past year. The number of mortgages that were 90+ days delinquent, in foreclosure, or REO 
declined from 103,200 in March 2010 to 81,900 in March 2011.  

Spotlight on Phoenix MSA | Page 2

NaQon 

Foreclosure 
Rate (Percent)
6.0%
1.5%

Sou

U.S Department of Housing and Urban Development
U.S. Department of the Treasury

U.S. Department Efforts to Stabilize Development Office and Help American Homeowners
The Obama Administration’sof Housing and UrbanThe Housing |Marketof Policy Development and Research | May 2011

Spotlight on the Phoenix-Mesa-Glendale, Arizona Metropolitan Statistical Area

The Administration’s Efforts to Stabilize
the Phoenix MSA Market:

orts to Stabilize the Phoenix MSA Market:

Mortgage Aid Extended More Than 106,000
Times To Mitigate Rising Foreclosures

d of March 2011 more than 65,000 mortgage assistance 
o Phoenix area homeowners through the Administra>on’s 
able Modifica>on Program and FHA’s loss mi>ga>on and early 
s).  An addi>onal 40,000 to 42,000 proprietary modifica>ons 
d through Hope Now Alliance servicers, bringing the total for 
6,500 interven>ons offered. While some homeowners may 
n one program, the number of >mes assistance has been 
mber of foreclosures completed during this period (104,500) in 

Phoenix MSA: Cumula>ve Offers of Aid by Source Compared with Foreclosures Since April 1, 2009  (Thousands) 

34&%5(6%&.47(

7(

Mortgage Aid Offers in Phoenix MSA From April 2009 through March 2011: 106,500 
Foreclosure Comple>ons Over Same Period:  104,500 

120 

Since April 1, 2009 (through March 2011) more than 65,000 mortgage
assistance interventions have been offered to Phoenix area homeowners through
d to homeowners, the Administra>on’s Neighborhood 
the Administration’s assistance programs (Home Affordable Modification
rdest Hit Fund (HHF) have both contributed toward achieving 
Program and FHA’s loss mitigation and early delinquency intervention programs).
oenix MSA.  
An additional 40,000 to 42,000 proprietary modifications are estimated to
es of Phoenix, Mesa, Glendale, Avondale, Chandler, Surprise 
the State of Arizona have received NSP grants.  Overall, 
have been offered through Hope Now Alliance servicers, bringing the total
1,935,463 in NSP3 funds have been awarded to these seven 
y of Phoenix administers $60,000,000 and the na>onal non‐ to about 106,500 interventions offered. While
for the metropolitan area
cts to invest $30,583,000 in the Phoenix metro area.   
some homeowners may have received help from more than one program, the
number of times assistance has been offered is close to the very high number
of foreclosures completed during this period (104,500) in the Phoenix-MesaGlendale MSA, which has been one of the hardest hit areas in the nation.

100 
80 
60 
40 
20 
0 

FHA Loss Mi>ga>on 

Hamp Modifica>ons 

Es>mated Hope Now Modifica>ons 

Foreclosure Comple>ons 

Note:  Data on Hope Now proprietary mortgage modifica>ons not available at metropolitan area level. However, Hope Now Alliance reports 55,200 
non‐HAMP modifica>ons since April 1, 2009 in the state of AZ, of which 75 percent are es>mated by HUD to have occurred in the Phoenix MSA. 
 

Sources:  Departments of HUD and Treasury, Hope Now Alliance, and Realty Trac. 

 

The demolition project used a green approach to minimize the amount
of materials sent to landfills and other waste facilities -- at completion, 75
In addition to offers of mortgage aid to homeowners, the Administration’s
• The City of Phoenix is using NSP dollars to implement an innova>ve energy efficiency plan by leasing solar panels 
!8#9$-.$:( ;#<=>$.$:(
to buyers of NSP proper>es using NSP funds pay the en>re upfront costs of the lease. This allows the homeowner to 
percent of the demolition materials were salvaged or recycled. The city’s
Neighborhood Stabilization Program (NSP) and Hardest Hit Fund (HHF) have
have no monthly payments while benefi>ng from approximately 30% reduced u>lity costs, making the homes more 
DEF(
@ABC(
affordable over >me.  
vision for the future is to redevelop the land with a transit-oriented residential
both contributed toward signs of housing market stability in the Phoenix area.
 
/0(
1(
development project.
• NSP outreach is promo>ng homeownership values and s>mula>ng the market with a 460% increase in applica>on 

•

interest since the beginning of January 2011. With the help of an NSP homebuyer assistance program, owner 

8(
9(
Phoenix MSA NSP Activity occupant homebuyers have purchased or are under contract to purchase 200 single‐family homes.  With an average 
(Housing Units) Projected Completed

NSP1

479

19

5

6

0

514

419

Rehabilitation/reconstruction of residential
/1(
9(
structures

1548

60

NSP2

1423

0

30

0

1423

0

715

0

>/0(

/1>B(

89(

?D@G(

&(,4(%#2-)#&.-$"(2.%3'.3%#2(

1/>(

A(

Clearance and demolition
ConstructionC9( new housing
of
9(

Homeownership assistance to low- and
/>DC(
9(
moderate-income

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E?H(

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already benefiled from NSP and ac>vi>es funded by the 
&(,4(%#2-)#&.-$"(2.%3'.3%#2(
111(
stance to another 3,500 owner and renter households. 9(
re being used include: 

Clearance and demolition

mplex in Phoenix had become notorious for crime, vandalism, 
leading to 20% occupancy and squamng of vacant units. 
d will rehabilitate the complex. Half of the units will be for 
 for moderate income persons. 

Rehabilitation/reconstruction of residential
structures
NSP3

2‐unit complex that struggled with code viola>ons, crime, and 
of Maricopa County’s worst slum proper>es, was acquired 
moli>on project u>lized a green approach to minimize the 
and other waste facili>es.  The city’s vision for the future is to 
nted residen>al development project.  

Clearance and demolition

15

0

Homeownership assistance to low- and
moderate-income

160

0

Rehabilitation/reconstruction of residential
structures

555

0

Seven jurisdictions in the MSA (cities of Phoenix, Mesa, Glendale, Avondale,
Chandler, Surprise Town, and Maricopa County) plus the State of Arizona have
received NSP grants. Overall, $72,375,065 in NSP1 funds and $31,935,463 in
NSP3 funds have been awarded to these seven jurisdictions. Under NSP2, the City
of Phoenix administers $60,000,000 and the national non-profit Chicanos Por La
Causa expects to invest $30,583,000 in the Phoenix metro area. Approximately
500 households have already benefitted from NSP and activities funded by the
program are expected to provide help to an additional 3,500 owner and renter
households. Examples of how the funds are being used include:

•

•

The City of Phoenix is using NSP funds to pay an innovative energy
efficiency plan by leasing solar panels to buyers of NSP properties
using NSP funds to pay the entire upfront costs of the lease. This allows
the homeowner to have no monthly payments while benefiting from
approximately 30% reduced utility costs, making the homes more
affordable over time.

mortgage amount of $90,000, the program has ini>ated $18 million in homebuyer investment within Phoenix.  In 
addi>on, more than 1,600 mul>‐family rental units have been acquired for rehabilita>on and re‐occupancy.  Of 
these, 988 are reserved for families with income at or below 50% of area median income. 
 
 • As leverage to NSP investments in West Phoenix and Maryvale neighborhoods, a $200,000 grant to rehabilitate 65 
owner occupied homes has been contributed by Wells Fargo Leading the Way Home Priority Markets to complement 
and support NSP revitaliza>on work  
 
All seven jurisdic>ons in the Phoenix area are faced with market condi>ons that reflect rela>vely new housing stock 
and a need for absorp>on of already exis>ng homes. Therefore, NSP is mainly targe>ng homeownership assistance 
and rehabilita>on of exis>ng residen>al structures. The Phoenix MSA has provided homeownership assistance for 
479 households and rehabilitated 60 units with thousands more projected for the remainder of the NSP programs. 
 
Using a grant under the HHF program, the Arizona Department of Housing (ADOH) launched the Save Our Home AZ 
program on September 23, 2010, running the program as a pilot with a controlled roll‐out through December 31, 
2010. Under  the ADOH program, applicants must demonstrate that their inability to pay their mortgage is the result 
of a specific hardship . Many forms of assistance would be available, including mortgage principal reduc>on, rate 
decrease, and/or term extension.  In the first quarter of 2011, one major servicer/lender, Bank of America, signed a 
par>cipa>on agreement with the program. Mortgage assistance  through that servicer is not expected to be 
reported un>l the 2nd Quarter of 2011. Nego>a>ons con>nue with other lending ins>tu>ons and servicers.  
 
  
 

2068

.,(",5=($&)(+,)#%$.#=-&',+#(

•

•

NSP outreach is promoting stable home values and stimulating the
market. With a 460% increase in applications since the beginning of
January 2011, an NSP homebuyer assistance program has helped
owner occupant homebuyers purchase or contract to purchase 200
single-family homes. With an average mortgage amount of $90,000,
the program has initiated $18 million in homebuyer investment within
Phoenix. In addition, more than 1,600 multifamily rental units have been
acquired for rehabilitation and re-occupancy. Of these, 988 are reserved
for families with income at or below 50% of area median income.
As leverage to NSP investments in West Phoenix and Maryvale
neighborhoods, a $200,000 grant to rehabilitate 65 owner occupied
homes has been contributed by Wells Fargo Leading the Way Home
Priority Markets to complement and support NSP revitalization work.

All seven jurisdictions in the Phoenix area are faced with market conditions
that reflect relatively new housing stock and a need for absorption of already
existing homes. Therefore, NSP is mainly targeting homeownership assistance
and rehabilitation of existing residential structures. The Phoenix MSA has
provided homeownership assistance for 479 households and rehabilitated 60
units with thousands more projected for the remainder of the NSP programs.

The Arizona Department of Housing (ADOH) received almost $268 million
through the Hardest Hit Fund to launch the Save My Home AZ program. Save
My Home AZ now includes four major initiatives: permanent modifications
utilizing principal reduction for “underwater” mortgages; second mortgage
The 523-unit Park Lee apartment complex in Phoenix had become notorious
assistance; mortgage assistance to help unemployed homeowners make their
for crime, vandalism, drug activity, and poor maintenance, leading to 20%
mortgage payments while looking for re-employment; and transition assistance
occupancy and squatting of vacant units. Using NSP funds, the City acquired to help homeowners who can no longer afford their home complete a short
and will rehabilitate the complex. Half of the units will be for very low income sale or deed-in-lieu of foreclosure. All major national servicers are participating
persons and the rest for moderate income persons.
in at least one of Arizona’s programs. Homeowners must demonstrate a
financial hardship and meet other eligibility criteria to qualify, and can enter
The Sunset Manor Apartments, a 52-unit complex that struggled with code
the program with the assistance of a local HUD-approved housing counselor.
violations, crime, and blight earning the reputation as one of Maricopa
County’s worst slum properties, was acquired through NSP and demolished. Arizona has this assistance available until the end of 2017 to help prevent
avoidable foreclosures.

Spotlight on Phoenix MSA | Page 3


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