Growth in the real estate market is great news for Arizona, but there seems to be an issue with dependable, affordable, and skilled construction workers to keep up with buyers’ demands. AZ Big Media is reporting on how builders have been opting for high-end luxury projects over low- to median-priced housing in order to see profits. Down the line, this might mean trouble for the economy. 

A July study from the National Association of Realtors showed that sales on low-priced housing were down while sales for luxury housing increased 20 percent. Though Mark Stapp, a real estate professor at Arizona State University’s W.P. Carey School of Business, noted to AZ Big Media that non-luxury real estate construction is low in general, trends among builders tell the story that the situation won’t be changing anytime soon.

New construction is in high demand but the availability of skilled trade workers just isn’t there. Costs of labor has increased, and with a small pool of workers, builders don’t have the means to reap profits on affordable housing. Add in the difficulties in getting federal funding to subsidize affordable housing and the option to build luxury housing seems a logical and lucrative leap.

According to Stapp, however, that may lead to a downturn in the economy. Affordable housing is needed to lure businesses to places like Phoenix and Gilbert. Noting that expensive housing markets slow all levels of the economy, Stapp told AZBM that “companies will not move to Arizona if their employees cannot find a place to live.”