Alliance Bank of Arizona’s 2021 Phoenix Economic Forum
As business leaders begin planning for a new year ahead, questions remain about how well the local area economy is faring and what can be anticipated in 2022. To help put the year in greater focus, Alliance Bank of Arizona hosted an Economic Forum event, featuring noted national economist Dr. Christopher Thornberg, that specifically focused on trends seen in the Valley.
Dr. Thornberg of Beacon Economics, a leading provider of economic research, forecasting, industry analysis and data services, weighed in on the latest data and offered thoughtful commentary on the key sectors of the Valley’s economy that are driving it forward.
The labor market has been among most prolific areas of recovery in Maricopa County, which is one of just a handful of regions in the country to have fully recovered jobs lost since 2020. As of August 2021, the region regained 119% of jobs lost between February 2020 and April 2020, while the national numbers have only reached 75.1%.
The housing market has also thrived, creating large spikes in housing demand over the past year. With home values increasing, Maricopa County has outpaced its sister counties in the state as median home prices rose 36.9% from Feb. 2020 to Aug. 2021.
And though average asking rent increased slightly, commercial real estate in the region has remained constant over the past year, unlike Pima County, which saw exceptional volatility at the onset of the pandemic.
Dr. Thornberg outlined several factors that helped stoke this exceptional growth and provided deeper analysis of what the numbers mean for the present business climate, and also what could be on the horizon. A recording of Dr. Thornberg’s presentation is available below.
To complement the event, Alliance Bank has also published a Phoenix-focused Regional Intelligence Report, in partnership with Beacon Economics, that takes a deeper dive into Dr. Thornberg’s insights.