Happy Tuesday, friends!

The Valley keeps evolving in fascinating ways this week. From major infrastructure milestones like the South Central Light Rail Extension finally opening to significant zoning changes for data centers across multiple cities, there's a lot happening. The restaurant and entertainment scene continues to expand with everything from pickleball venues to fried chicken chains finding their footing. Meanwhile, the real estate market is showing some interesting patterns; luxury sales are surprisingly strong while the overall market remains challenging for sellers.

The Recap

This week brought major infrastructure news with the South Central Light Rail Extension officially opening after 25 years of planning and four years of construction. The East Valley saw continued growth with data center regulations advancing in Tempe, a massive new pickleball entertainment complex coming to Mesa, and Axon ending negotiations with Scottsdale over its controversial headquarters project.

The West Valley is heating up with new restaurant chains expanding rapidly, including Slim Chickens opening its fifth Arizona location in Goodyear. Major developments are also moving forward in Laveen with multiple mixed-use projects, while Peoria's $2 billion semiconductor plant faces continued resident opposition despite staying on track for September groundbreaking.

The market? It's telling two different stories. Luxury homes had their strongest May on record with 91 closings over $3 million, while the broader market continues to favor buyers. Supply has finally started to level off as new listings drop, but demand remains weak with mortgage rates stuck near 7%.
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_{Rates vary based on credit score, loan type, and lender policies. For the most accurate estimate, consult with a lender.}

East Valley News & Developments

Tempe Joins Phoenix and Chandler with Data Center Regulations

Tempe City Council held its first public hearing for new data center zoning amendments, joining Phoenix and Chandler in addressing the surge of AI-driven data center demand. The proposed changes would restrict data centers from innovation hubs, rail corridors, and residential districts, while requiring a 500-foot buffer from residential areas. The amendments also classify data centers as "extreme-water use" facilities requiring detailed water use plans. A final hearing is scheduled for July 1st.
📍 Citywide, Tempe
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Dink & Dine Pickle Park Opens July 30 in Mesa

The massive 72,000-square-foot pickleball entertainment complex at Mesa Riverview is set to open July 30th, featuring 13 courts (10 indoor), multiple dining venues, and event spaces. The concept combines three businesses under one roof: the main pickleball facility with Paddleheads restaurant, an outdoor "park" area with courts and activities, and a dedicated events space with removable nets for weddings and corporate events. The facility could employ up to 130 people and offers hourly passes instead of memberships.
📍 Mesa Riverview, Loop 202 and Dobson Road
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South Central Light Rail Extension Finally Opens

After 25 years of planning, the 5.5-mile, $1.3 billion South Central Extension opened June 7th, connecting south Phoenix to downtown with 18 public art installations and new stations. The extension introduces a two-line system with the north-south B Line running from Metro Parkway to Baseline Road, while the east-west A Line continues to Mesa. A weekday trip from Downtown Hub to Baseline takes 19 minutes, serving an area where 44% of residents have limited vehicle access.
📍 Central Avenue to Baseline Road, Phoenix
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Axon Ends Scottsdale Headquarters Negotiations

Taser manufacturer Axon will proceed with its original $1.3 billion headquarters project after negotiations with Scottsdale broke down. The company had offered to reduce apartment units from 1,900 to 850 and build a crime center and performing arts facility, but President Josh Isner cited "political toxicity" in ending talks. The project includes a hotel, apartments, condos, and restaurants on 73 acres at Loop 101 and Hayden Road, protected by state legislation that retroactively invalidated a citizen referendum.
📍 Loop 101 and Hayden Road, Scottsdale
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West Valley News & Developments

Slim Chickens Opens Fifth Arizona Location in Goodyear

The Arkansas-based fried chicken chain opens its Goodyear location June 16th at Bullard Avenue and McDowell Road, with plans for 32 Arizona locations over the next decade. The 4,500-square-foot restaurant seats 70 people and features the chain's signature chicken tenders, 17 house dipping sauces, and Southern hospitality approach. Franchisee Lucas Barnett is building 2-3 stores annually, focusing primarily on the Phoenix area with one East Valley location secured in Gilbert.
📍 14765 W. McDowell Road, Goodyear
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Rush Funplex Anchors New Laveen Development

A 14-acre mixed-use development near Loop 202 and Dobbins Road will feature The Rush Funplex, a 75,000-square-foot family entertainment center with go-karts, bowling, laser tag, mini-golf, and arcade games. The facility offers hourly and day passes rather than memberships. Construction begins late 2025 with a December 2026 opening. Other announced tenants include QuikTrip, Bubble Bath car wash, and Express Oil & Tire Engineers.
📍 Loop 202 and Dobbins Road, Laveen
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Amkor's $2 Billion Peoria Plant Faces Opposition

Despite resident opposition and lawsuit threats, Amkor Technology's semiconductor packaging plant remains on track for September groundbreaking. The facility will be the largest outsourced packaging plant in the U.S., creating 2,000 jobs and supporting nearby TSMC's operations. Opposition centers on the Vistancia location, with Citizens for Smart Growth leading the effort. The plant will package and test millions of chips, with phase one completion expected September 2027.
📍 11651 West Peak Road, Peoria
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Laveen Towne Center Expands to 90 Acres

After nearly two years of delays, Laveen Towne Center has expanded from 40 to 90 acres, now including up to 1,456 residential units alongside 530,000 square feet of retail. The mixed-use development between Vestar and BRIO Investment Group will feature restaurants, specialty shops, a department store, warehouse club, and family entertainment facility. The residential component includes multifamily, condos, single-family options, and possible assisted living, with development areas designed to decrease in intensity away from Dobbins Road.
📍 Dobbins Road and Loop 202, Laveen
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🏡 Real Estate Trends

The market is telling two very different stories right now.

The luxury market is absolutely crushing it. May saw 91 homes close above $3 million - up 18% from last year and the strongest May on record. The average sale price hit $5.1 million, and homes over $5 million averaged over $8 million (up 20% year-over-year). The luxury market is basically following the stock market these days, with wealthy buyers treating high-end properties like investment assets.

Everything else? Much tougher. Sales under $1 million dropped 6% compared to last year, and the overall market dynamics heavily favor buyers.

The Numbers (June 1, 2025 vs June 1, 2024):

📈 Active Listings: 26,580 vs 18,044 last year (up 47%)
📉 Pending Listings: 4,595 vs 5,015 last year (down 8.4%)
📉 Monthly Sales: 7,095 vs 7,597 last year (down 6.6%)
📈 Average Price per Sq Ft: $300.14 vs $297.82 last year (up 0.8%)
📈 Median Sales Price: $455,000 vs $450,000 last year (up 1.1%)

What's Happening:

• Supply has finally leveled off - the relentless growth of the first four months stopped as new listings dropped sharply

• Demand keeps weakening - contracts under contract fell 12% from last month and 5% year-over-year

• Mortgage rates stuck near 7% - buyers are either waiting it out or getting very picky

• Builders are buying down rates - many offering 4.99% to qualified buyers who probably could negotiate for other concessions too

The Cromford Market Index sits at 73 - unusually low outside of crash periods. Only 3 cities are seller's markets (and weak ones), 7 are balanced, and 7 favor buyers. Scottsdale, Phoenix, Glendale, Gilbert, and Chandler have deteriorated most for sellers recently.

Interesting trend: Some buyers are now asking for full remodels instead of repairs - new paint, window replacement, bathroom remodels, even new roofs on working ones. If you're a motivated seller with one buyer, it's hard to say no when the cost gets added to the sale price.

Bottom line: We're not in a crash, but we're definitely in a grind. Price it right from day one if you're selling. Take your time if you're buying there are more options and less pressure than we've seen in years.

Foreclosure watch: Still low by historical standards, but May saw 389 new Notices of Trustee Sale (up from 315 last year) and 73 Trustee Deeds (highest since pre-COVID). It's getting harder for distressed sellers to avoid auction by selling first.
Check current mortgage rates
_{Mortgage rates vary based on individual qualifications, including credit score, loan type, and lender policies. For a personalized rate estimate, it’s best to consult with a lender.}

🌵See You Next Week in the Desert

That's a wrap for this week's edition of The Desert Real.

Between major infrastructure openings, expansion announcements, and a market that's rewarding luxury while challenging everyone else, the Valley continues to evolve in unexpected ways. Whether you're tracking developments in your neighborhood or trying to time the market, we've got you covered.

If you spot something interesting or have questions about anything you see here, just hit reply and let me know. We'd love to hear from you.

See you next week!

-Brad