☀️ Happy Tuesday, friends!

This week’s Desert Real is all about scale and direction. From massive data center proposals and semiconductor suppliers expanding across the region to bold new residential and high rise projects, the Valley’s long term growth patterns are getting clearer by the day.

We’re also seeing early signals from the 2026 housing market. Demand is waking up, inventory is growing, and mortgage rates are hovering at levels that finally allow buyers and sellers to re engage without panic or hype.

📰 The Recap

Arizona’s growth story continues to widen. The West Valley and Pinal County are pulling in infrastructure heavy projects tied to data, chips, and advanced manufacturing, while Tempe and Northeast Phoenix lean into density and master planned living.

Data centers remain controversial but active, semiconductor suppliers are clustering closer to fabs, and cities are balancing opportunity with community concerns around water, power, and transportation.

On the housing side, 2026 is starting with more balance than we’ve seen in years. Inventory is up, price growth is cooling, and buyer activity is showing early life as mortgage rates sit near 6 percent.

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.}

News & Developments

⚡ Two Major Data Centers Advance Across the Valley

Two new data center projects are moving forward, one in the West Valley near Luke Air Force Base and another in Mesa.

In the West Valley, Project Baccara proposes two massive data center buildings plus an on-site natural gas power plant on 160 acres north of Luke AFB. The project has cleared compatibility review with the base and is targeting construction as early as 2026, though local opposition has emerged around resource use and area character.

In Mesa, NTT Global Data Centers is revising plans for its Elliot Road campus, combining two buildings into one and enhancing design features along public-facing edges. City design review discussions are underway.

📍 West Valley and Mesa
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🏗️ Empire Group Unveils Revelry High Rise in Tempe

Empire Group has officially announced Revelry, a Class A mixed use high rise at Rural Road and University Drive.

The project includes 533 residential units across two towers rising 17 and 15 stories, along with retail, co working space, and an extensive amenity package that rivals top urban communities nationwide. Groundbreaking is expected this spring.

Revelry reinforces Tempe’s long term shift toward density, walkability, and vertical living near ASU and light rail.

📍 Tempe
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🏡 Taylor Morrison Launches Verdin in Northeast Phoenix

Taylor Morrison has opened models at Verdin, a new 473 acre master planned community in far northeast Phoenix.

Verdin will include up to 1,225 homes across five collections, with prices ranging from the high $600s to over $1.3 million. It is the builder’s first community certified by the National Wildlife Federation and features a large central recreation complex scheduled for completion in 2026.

📍 Northeast Phoenix
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🏭 Semiconductor Supply Chain Expands in Casa Grande

Sunlit, a Taiwan based chemical supplier, has acquired 40 acres in Casa Grande to build a hydrofluoric acid manufacturing plant supporting TSMC and Intel.

Rail access, land availability, and speed to execution were key drivers in the location choice. The move adds to a growing cluster of chemical and semiconductor related facilities in the area, though community concerns around hazardous material transport are increasing.

📍 Casa Grande
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🏢 Fujifilm Approved for Major Mesa Expansion

Mesa City Council has unanimously approved a rezoning allowing Fujifilm Electronic Materials to expand its 61 acre Mesa campus.

The expansion allows for more than 86,000 square feet of new facilities across multiple phases, supporting increased semiconductor material production and future demand spikes. Employment at the site has already exceeded earlier projections.

📍 Mesa
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Real Estate Trends

Local Market Update

The 2026 housing market is getting off the ground with healthier fundamentals. Mortgage rates near 6 percent are unlocking demand without reigniting runaway price growth.

Purchase mortgage applications jumped 16 percent week over week and 13 percent year over year in the first clean read of the new year. Weekly pending sales reached their highest level in many years, signaling stronger closings ahead.

Inventory is up 10.5 percent year over year, giving buyers more choice, while price growth has cooled. ARMLS data shows the average sales price per square foot dipped in early January due largely to sales mix, not distress. The market still slightly favors buyers overall, but the gap is narrowing.

The Cromford Market Index shows most major cities still leaning toward sellers, though momentum has softened slightly over the past few weeks.

National Trends

Nationally, mortgage rates remain stable thanks in part to improved mortgage spreads and recent federal action supporting mortgage backed securities.

The 10 year Treasury yield is hovering in the low 4 percent range, keeping rates from drifting back above 7 percent even as economic data remains resilient. Affordability is still stretched, but conditions are more constructive than they’ve been in several years.

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.}

MASSIVE Projects Reshaping Phoenix Arizona In 2026...

In 2026, the Phoenix metro is not just growing. It is being reshaped. Jobs, infrastructure, and housing are aligning in powerful new ways that are already redefining how the Valley functions.

In this video, we break down the projects driving that shift, where they are landing, why they matter, and how they will impact housing, traffic, and livability for years to come.

🌵See You Next Week in the Desert

Arizona’s growth isn’t random. Jobs are moving outward, infrastructure is leading development, and density is becoming unavoidable in the urban core. The projects breaking ground today are setting the Valley’s shape for decades.

As always, we’ll keep tracking what matters most so you don’t have to.

– Brad