Welcome to Passive Real Estate Investing. I'm your host Marco Santarelli. Well, we have a very special episode today because we're going to talk about the Phoenix, Arizona Metro area and why it is such a hot market yet again, for investing. And along with that, the new construction opportunities that are available there, which I'm very excited about. And you're going to learn about that today, and then you'll understand why I'm so excited about it.

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So let me begin by introducing Steve, who is our primary point of contact with our builder, who we've been working with for many, many years in other markets, including Houston, the greater Salt Lake City area, even in Idaho that has been on fire lately. So Steve, welcome to the show.

Good to be back. Let's see. I see. I didn't offend you too badly last time.

No, you did it. And in fact, uh, I was so forgiving. I thought I'd bring you back on.

Oh, that's nice of you. All right. I don't get another chance this time, but I'll do my best. I'll behave.

No, we love you, Steve. It's always great working with you and we, we do a lot of business together, so it works out. Um, so look, I'm really excited about the Phoenix area and when I bring up Phoenix to some people, they look at me a little bit surprised because Phoenix has been on an incredible run in terms of population growth, price growth. In fact, I pulled up some numbers on one of my tools and I'm looking at the appreciation rates in that market, in the Metro area. And in the last quarter, annualized, it was 9.9%, almost a 10% annualized rate of appreciation. The last 12 months was 8.3%. Over the last two years, it worked out to seven and a half percent annualized. But if we go back like five years, we've seen an average overall rate of appreciation of 9%. And if we go back 10 years, it's also a 9% average annual rate of appreciation. And I have to think a lot of people from California are moving to Phoenix and just driving property values up, but it's a hot market. So tell me what you think about what's going on and in general with Phoenix and why we should be investing there.

Well, as you mentioned, we do a lot of new multifamily construction in a Utah, Idaho, Houston kind. If we drill down to the Western us though, you know that spine of the Rocky mountains, you tires on Idaho. It's been an interesting setup because we all know that Phoenix along with maybe what Vegas and Southwest Florida, that was ground zero of the 2008 mortgage meltdown, right? That's where a lot of the speculation occurred in the markets. You really took it on the chin accordingly. And you can look back on that and you can say why there's lots of reasons why, but always concerned about having a diverse employment base, right? Can people get jobs? Can they afford the mortgages and the rents that they're signing up for? And that turned out to be in Phoenix, back in 08, not, not really to be the case, right?

There was a lot of speculation that was driving that when you look at it, now it's a different place, right? We're talking about a much more diverse employment base. Now the demand for the housing and some of that appreciation that's been happening that you've been talking about is very much warranted. There's a shortage of housing in the Valley or Maricopa County there. And I think much of it comes from people are leaving California,