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Developers flood Arizona with homes even as drought intensifies

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California has just seen its most dry January and February in history, with dangerously low snowpack. The West begins its third year under drought. water sources are drying upRestrictions on the Colorado River have now hit all segments of the Western Economy, including homebuilding.

There is an acute shortage of water. But there are also shortages of housing. A National Association of Home Builders estimate that the US requires more than one million additional homes in order to satisfy its current demand. Others estimates go even higher. There is a shortage of houses for sale as Gen Z and the millennials enter their prime homebuying years. High costs of land, labor, and materials are hindering builders. They are now focusing on the West, and the rapidly growing suburbs in Phoenix, Arizona.

 On a vast swath of land in Buckeye, Arizona, just west of Phoenix, the Howard Hughes CorporationOne of the most master-planned areas in the country is being developed. Douglas RanchFlooding the desert with housing.

David O’Reilly, CEO Howard Hughes says water won’t be a problem.

 “Every home will have low flow fixtures, national desert landscaping, drip irrigation and reclamation,” he said, adding, “we work with the local municipalities, the city of Buckeye, all the water districts, to make sure that we’re enacting real conservation measures, not just at our property, but across the entire region.”

It is expected to be home to more than 100,000 people and attract at least 300,000. The big public builders include Pulte, Taylor Morrison, Lennar, DR Horton Toll BrothersHoward Hughes Corporation says that many people expressed an interest to build the homes.

It’s only one of many developments that are being made around Phoenix. The West, however, is still in its infancy. worst drought in more than 1,000 years.

“They expect this region to have a million residents. There is not enough water to support that growth. Kathleen Ferris is Senior Water Research Fellow at Arizona State University.

Ferris made a document about the 1980 Groundwater Management Act. Developers must prove that there are 100 years worth of water on the land they intend to build. Douglas Ranch lies on the Hassayampa Aquifer. This will be its main water source.

 “And the problem is that with climate change there aren’t backup water supplies that you can use to save a development that’s based totally on groundwater. Ferris stated that if the water supply is cut off, it will not be able to get water back up.

 Mark Stapp is director of Arizona State University’s real estate development program at the W.P. Carey School of Business. Although he points out several reservoirs that might replenish groundwater, he admits to there being still risks due to the scale of the development.

 “I would say that there’s a legitimate concern about our future, and policy-makers are very aware of this,” said Stapp.

 O’Reilly argues that the current need for housing surpasses future concerns that could be unfounded.

 “I don’t think the answer is to tell people that are looking for an affordable home in Arizona, ‘You can’t live here, go somewhere else.’ O’Reilly explained that he believes the only responsible and sensible solution, the wise answer is to provide affordable housing, however, it should be self-sustaining.

A reportThe Kyle Center for Water Policy, ASU, warned last spring that groundwater levels in Hassayampa were significantly less than the regulators estimated. They also stated that “the physical groundwater supply below Buckeye will reduce and won’t be sustainable” if they don’t change their direction. In addition, the report states that groundwater models for 100 years are constantly evolving due to changing weather conditions. Now, the state’s department for water resources is attempting to determine if there are actually 100 years worth of water in the basin.

“The bottom line here is that this area of the state has enough water supply to allow for new growth. Ferris stated that it doesn’t take much to get water from the ground to construct new homes.

Although the land is more expensive in desert areas, Ferris says that there will be a price.

 

 

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