Lennar plans to develop more than 700 in the near facility of TSMC North Phoenix area.
As competition intensifies for a 2,300-acre state land auction near the Taiwan Semiconductor Manufacturing Co. plant in north Phoenix, homebuilders are gearing up to meet the demand created by the 50,000 jobs expected in the area over time.
Miami-based Lennar Corp. (NYSE: LEN) plans to construct over 700 homes in that area, according to Alan Jones, president of Lennar’s Arizona division.
“Lennar aims to build where there is job growth,” Jones stated. “As we observe new jobs popping up, we will do our best to provide homes in that area. There are a lot of new jobs popping up. We are actively pursuing to get more land in this area, because of the increasing demand.”
Lennar’s Middle Vistas community, off Interstate 17 and Dixileta is already seeing high a lot of interest from TSMC North Phoenix employees. Several employees have already purchased homes in the new development, with prices going from the mid $400,000s to the mid $700,000s.
The gated community, comprising 228 home sites, will also showcase Lennar’s newest Next Gen floor plan, named Latitude.
Next Gen floor plans offer a private multi-use suite, giving more space for multi-generational families while maintaining privacy or independence.
The new Latitude model is a more compact version of the Next Gen home, offering an option for buyers seeking smaller home sizes.
Lennar exec: Integrating flexibility into homes near TSMC North Phoenix
The appeal of a Next Gen home lies in its flexibility, said Jones, who introduced the concept in TSMC North Phoenix. It’s becoming popular not just with Lennar markets but also with other homebuilders.
“As the family situation changes, there is no need to move,” he said. “The home is adaptable enough to be used in different ways as needed.”
For instance, a separate suite with its own entrance can be utilized as a home office, or accommodation for children or aging parents.
“Many parents buy these homes, because they know their kids might struggle to settle down for a new home,” Jones said.
Next up, Lennar plans to open models soon at Aloravita, a project with 295 homes near Happy Valley Road and 83rd Avenue in Peoria. These homes are priced from the upper $500,000s to the mid $800,000s.
Lennar is planning to build more than 700 homes near TSMC North Phoenix.
Also near TSMC North Phoenix, Lennar’s Windstone Ranch, located east of 163rd Avenue and north of Happy Valley Road, is set to begin sales of 200 homes this month. Prices will begin in the high $300,000s and the home range from 1,232 to 3,024 square feet.
Next Gen floorplans will also be available at both Aloravita and Windstone Ranch.
As a homebuilder, we are designating that area as a key location for a community to help meet the demand from all the new jobs,” Jones said.
Brookfield Properties has development plans east of I-17
Separately, Brookfield Properties has secured a planning contract and is working for the Arizona State Land Department on 6,000 acres of state land located east of Interstate 17 and west of Tatum Boulevard.
“Arizona and the Phoenix MSA are still important market for Brookfield Properties growth. We are consistently seeking for large land opportunities in areas with ongoing job growth and strong housing demand,” said Dea McDonald, President of Arizona Land and Housing for Brookfield Properties.
These 6,000 acres of state land, located north of Loop 101 and east of Interstate 17, could become the site of new homes to support job growth in the area.
Don Barrineau, President of the Phoenix division for Mattamy Homes, is also is constructing thousands of homes near TSMC.
“We’ve already sold properties to TSMC North Phoenix in our Sendero Crossing community near Anthem, and in our Sereno community in Peoria,” he said. “We have a total of 827 lots across four communities that will feed that demand.“
Out of the 172 lots at Sendero Crossing, 27 are still available for sale, he said.
Out of the 269 lots at Sereno, 105 are still not for sale, additionally 208 total lots are opening this summer at Miravida, and another 178 total lots will be available this fall at Tierra Vistoso, he said.
“We also have three other deals in the works that would provide excellent option for TSMC and ancillary supplier employees in Peoria, Surprise and Waddell adding up to another 1,488 lots,” Barrineau said.
Home prices on the Rise Again
All these new homes are being constructed as home prices steadily increase. Currently, the median sales price of a home in metro Phoenix is $450,000, up from $447,000 last month, according to The Cromford Report.
Even so, this remains below the median price home price of $470,000 as of May 15, 2022.
“The upcoming state land purchase is expected to bring lot of growth to the area,” said Keith Burton, Realtor with the Rider Elite Team.
TSMC is a big name in the semiconductor industry, and its presence in the Valley is probably driving up the housing demand, he said.
