December 2024 Phoenix Market Overview
As we wrap up 2024, Phoenix continues to cement its status as a dynamic hub of economic activity, innovation, and job growth. This month brought pivotal developments across research, infrastructure, entertainment, and workforce opportunities. These highlights showcase Phoenix’s thriving ecosystem and its potential for long-term growth in Arizona.
Arizona State University: A $1 Billion Research Powerhouse
Arizona State University (ASU) is on track to join the elite ranks of $1 billion research institutions. This places the university into a rare category that only 33 other universities across the nation have achieved. “ASU established the capacity to become the leading public metropolitan research university in the 21st century, known for its excellence in teaching and research, its innovative interdisciplinary programs, and its direct social engagement.” said ASU President Michael Crow in an article from the Greater Phoenix Economic Council.
This milestone reflects the university’s role in advancing innovation, particularly through projects like SHIELD USA, which strengthens the region’s defense and technology sectors. ASU’s growth attracts top talent, fosters collaboration across industries, and positions Phoenix as a leader in cutting-edge research. (AZBigMedia).
Entertainment Takes Center Stage: Desert Diamond Casino White Tanks
The grand opening of the $450 million Desert Diamond Casino in White Tanks introduces a world-class entertainment destination to the region. This state-of-the-art facility is expected to draw visitors from across the Southwest, enhancing Phoenix’s tourism appeal and contributing to the local economy. Desert Diamond Casino White Tanks plans to create over 1,000 new jobs and will be the only Arizona casino that offers incredible cuisine from the famed high-end restaurant Morton’s The Steakhouse. With gaming, dining, and event spaces, the casino is set to draw regional and national visitors, injecting tourism dollars into the local economy and further solidifying Phoenix’s status as a top leisure destination. (AZBigMedia).
Phoenix Among Top U.S. Cities for Vocational Jobs
Phoenix continues to excel in vocational job opportunities, ranking in the top five cities nationwide, per CommercialCafe. These developments illustrate the city’s commitment to building a robust and diverse job market. High demand for skilled trades aligns with the city’s growing industries, from healthcare to advanced manufacturing, ensuring long-term stability for its workforce. The city of Phoenix ranked number five among the top U.S. top metros for vocational education and jobs totaling of 45.1 out of a maximum of 100 points total. The Phoenix metro is home to the 10th-largest number of vocational jobs in the U.S. (with 1.56 million vocational occupations). Additionally, the Phoenix area placed second regionally for its vocational job density. (AZBigMedia).
Aviation Infrastructure Boost: $50M Sky Harbour Jet Campus
Phoenix’s Deer Valley Airport is set to welcome a transformative $50 million Sky Harbour Jet Campus by early 2025 with new opportunities in the private aviation sector. In a recent Hoodline article, Sky Harbour’s CEO, Tal Keinan, said that “this expansion is aiming to add approximately 200 high-quality jobs to the Phoenix Market.” This strategic project not only supports the region’s growing transportation needs but also aligns with Phoenix’s commitment to economic diversification.
This state-of-the-art facility will cater to corporate aviation, offering bespoke private hangar space for businesses and individuals. Deer Valley Airport, already recognized as one of the busiest general aviation airports in the U.S., will see significant economic benefits from this project, with increased demand for aviation services fueling job creation and growth in associated industries.
Small Business Growth and Entrepreneurial Spirit
Arizona continues to shine as a hub for entrepreneurship, earning a spot among the top 10 states for small business growth per AZBigMedia’s recent article. Small businesses are a big deal in the U.S., where companies with less than 500 employees have created over 70% of new jobs since 2019. In 2024 alone, there are over 50% more new business applications across the nation monthly than compared to 2019. With a supportive business climate, the region fosters innovation and growth across industries, reinforcing its appeal as a prime location for startups and established companies alike.
Arizona Employment Trends: Highs and Lows
Recent employment reports from AZ Central highlight the growth of Arizona’s workforce, but many positions remain in lower-paying industries. This dynamic presents challenges emphasizes the importance of ongoing workforce development and the potential for upskilling programs to elevate earnings. According to Arizona’s Office of Economic Opportunity, Arizona employment increased by 65,000 new jobs since October 2023. Annually, the major sectors recorded 25,000 new jobs added to the health care and social assistance industry, 10,900 new jobs to the professional and business services industry, and 7,100 trade, transportation and utilities industry.
Workforce Development: TSMC’s Apprentice Program
Taiwan Semiconductor Manufacturing Company (TSMC) has launched a technician apprentice program, addressing the demand for skilled workers in Arizona’s burgeoning semiconductor sector. This initiative not only bolsters the state’s high-tech manufacturing capacity but also opens pathways for workforce development and career advancement. It also positions the state of Arizona as a national leader in the high-tech manufacturing industry while creating opportunities for local workforce development. TSMC Arizona plans to partner with educational institutions now, with a goal to recruit and hire over 130 new apprentices and trainees in early 2025, in addition to the hundreds of current open positions for the Phoenix operation. (AZBigMedia).
Chandler Expansion: 3D Barrier Bags
Chandler celebrated the expansion of 3D Barrier Bags this month, further reinforcing its reputation as a manufacturing and logistics hub. This growth enhances Phoenix’s industrial capabilities, diversifies its economy, and creates new opportunities for businesses and workers alike. Over the past 35 years, GPEC has created nearly 190,000 new jobs and $69.4 billion in capital investments. Sandra Watson, President and CEO of the Arizona Commerce Authority said, “3D Barrier Bags’ expansion aims to enhance Chandler’s already thriving manufacturing industry and highlights the state’s appeal for manufacturing excellence while creating high-quality jobs.” (GPEC). This tactical development aligns with Phoenix’s broader economic diversification efforts and enhances its industrial capabilities.
Phoenix’s Culinary Scene Drives Economic Growth
Phoenix’s restaurant scene continues to thrive, with four local chains featured on the national “Future 50” list of fastest-growing brands. These top 50 up-and-coming chain restaurants are ranked across the country based on systemwide sales and growth. With four of the 50 based in Phoenix, it’s important to note that “several others have already expanded into the Phoenix metro or have plans, stating that the Valley is a target growth market for the chain,” per PBJ. This recognition highlights the city’s cultural vibrancy and its growing reputation as a culinary destination in the food and hospitality industries.
These Phoenix-based chains experienced average annual sales growth rates exceeding 24%, reflecting the city’s expanding consumer base and appetite for diverse dining options. Notable entrants include concepts capitalizing on Phoenix’s growing population and the robust local economy that fuels disposable income and spending on dining experiences. This surge in restaurant growth underscores Phoenix’s appeal as a market with strong consumer demand, supported by its position as the fifth-largest city in the U.S. (Phoenix Business Journal).
Investments in Healthcare: Valley Hospitals Lead in Maternity Care
Three Phoenix hospitals are receiving recognition for excellence in maternity care, bolstering the region’s healthcare reputation. According to U.S. News & World Report’s new evaluation, 2025 Best Hospitals for Maternity Care report, two hospitals in Phoenix and another in Scottsdale (HonorHealth Sonoran Crossing Medical Center, St. Joseph’s Hospital and Medical Center, and HonorHealth Scottsdale Shea Medical Center) are high performing designations. St. Joseph’s and HonorHealth Scottsdale Shea Medical Center were previously ranked earlier this year on the U.S. News 2024-2025 best hospitals list.
These three hospitals were among 414 hospitals that received this inspiring designation and the only three in Arizona among the 800 that appeared on the U.S. News list in 2024. This focus on quality healthcare services enhances Phoenix’s livability and attracts families and professionals to the area. (PBJ).
Hyperion Technologies Expands Advanced Manufacturing
Hyperion Technologies announced expansions in Arizona, contributing to the state’s growing advanced manufacturing sector. This potential 600,000-square-foot, fully automated manufacturing plant new facility is worth a $1.5 billion investment that anticipates to create 1,500 direct jobs. “This project represents an important addition to Arizona’s and the nation’s semiconductor supply chain while additionally furthering Arizona’s leadership in advanced packaging,” said the ACA. Collaborations with major players like TSMC and Intel strengthen Phoenix’s position as a global hub for technological innovation and production. (PBJ).
Conclusion
December has solidified Phoenix’s trajectory as a leader in economic growth, innovation, and community development. From advancements in research to a flourishing job market and strategic infrastructure projects, the region offers unparalleled opportunities for growth and success. As we enter 2025, Phoenix’s strategic investments and robust job market signal a promising outlook for the coming year.
About Rise48 Equity:
Rise48 Equity is a Multifamily Investment Group with local offices in Phoenix, AZ, Dallas, TX, and Charlotte, NC. “At Rise48 Equity, we provide opportunities for accredited and non-accredited investors to protect and grow their wealth and achieve passive cash flow. Our team brings expertise to acquire, reposition and return capital to investors upon reaching our business plan. Through our research and strategically formed partnerships, we acquire commercial multifamily apartment properties, strategically add value to the properties, and create passive income for our investors through cash flow and profits from sale.”
Since 2019, Rise48 Equity has completed over $2.34 Billion+ in total transactions, and currently has $1.9 Billion+ assets under management located in Phoenix, Dallas, and Charlotte. All of the company’s assets under management are managed by Rise48 Equity’s vertically integrated property management company, Rise48 Communities.
