e Obama Administration’s E orts to Stabilize  e Housing Market and Help American Homeowners | May 2011 U.S. Department of Housing and Urban Development | Office of Policy Development and Research

U.S Department of Housing and Urban Development

U.S. Department of the Treasury

Spotlight on Phoenix MSA | Page 1

Spotlight on the Housing Market in:

Phoenix-Mesa-Glendale, Arizona

The Phoenix-Mesa-Glendale Metropolitan Statistical Area (MSA), which 

includes Maricopa and Pinal Counties in Arizona, has been one of the 

hardest hit areas in the nation following the housing market downturn. 

It is also an area in which the Administration’s broad approach to 

stabilizing the housing market has been very active. This bimonthly 

addendum to the Administration’s housing scorecard provides a 

summary of trends and conditions in the local economy and the impact 

of Administration’s efforts to stabilize the housing market and help local 

homeowners.

Population Growth, Employment, and 

Housing Market: 

The capital of Arizona, Phoenix, has seen rapid population growth 

since 2000, increasing by 28 percent – a total of 923,700 -- to almost 

4.2 million as of April 2010. Nearly two-thirds of the city’s growth is 

due to new residents moving into the area. As employment options 

grew between 2004 through mid-2007, the population increased by 

an average of 127,400, or 3.9 percent, annually. In 2007, as the 

housing crisis began and the local economy weakened, population 

growth slowed to an average of only 6,300, or 0.2 percent, annually. 

After strong growth in the mid-2000s, employment began to drop in 

the fourth quarter of 2007 and continued a steep decline through the 

third quarter of 2010. 

Since the third quarter of 2010, the Phoenix economy has shown some 

signs of improvement. As of March 2011, employment totaled 1.7 

million -- up 0.6 percent compared with a year ago but slightly below 

the nation’s job growth rate of 1 percent during the same period. 

Despite recent employment gains, payrolls remain 211,700 jobs below 

pre-recession levels with construction jobs accounting for almost half 

of local job losses. The average unemployment rate was 8.8 percent 

during the 12 months ending March 2011, the same as a year ago. In 

comparison, the national average unemployment rate during the same 

period was higher at 9.4 percent, down slightly from 9.7 percent a 

year ago. 

The home sales market remains soft in Phoenix. Existing home sales 

rose in 2008 and 2009, though the boost was due in part to sales of 

Housing Crisis Has Ended Rapid 

Populati on Growth in Phoenix

Date

Phoenix MSA

Populati on

Annual Growth Rate 

From Prior Date

4/1/2000 3,251,900

7/1/2007 4,175,600 3.9%

4/1/2010 4,192,900 0.2%

Source: Census Bureau (2000 Decennial, 2007 CPS, and 2010 Decennial)

Spotlight on the Phoenix-Mesa-Glendale, Arizona Metropolitan Statistical Area

Date Phoenix MSA Population

Annual Growth Rate From 

Prior Date

4/1/00                            3,251,900                 ‐

7/1/07                            4,175,600 3.9%

4/1/10                            4,192,900 0.2%

Source: Census Bureau (2000 Decennial, 2007 CPS, and 2010 Decennial)

Housing Crisis Has Ended Rapid

 Population Growth in Phoenix

The Obama Administration's Efforts to Stabilize The Housing Market and Help American Homeowners - May 2011 

The Phoenix‐Mesa‐Glendale Metropolitan StaBsBcal Area (MSA), which consists of Maricopa and Pinal CounBes in Arizona, has been one of 

the hardest hit areas in the naBon following the housing market downturn. It is also an area in which the AdministraBon’s broad approach to 

stabilizing the housing market has been very acBve.  This Phoenix MSA addendum to the May 2011 housing scorecard provides a concise 

summary of local trends and condiBons in (1) the economy and housing market, (2) mortgage delinquencies and foreclosures, and (3) the 

AdministraBon’s key efforts to stabilize the housing market and help local homeowners.  

The Phoenix MSA Economy and Housing Market: 

The city of Phoenix is the capital of Arizona and the largest city in the MSA. The populaBon of the MSA has 

grown rapidly since 2000, increasing by a total of 923,700, or 28 percent, to almost 4.2 million as of April 

2010. Net in‐migraBon accounted for two‐thirds of this growth. Rapid employment growth from 2004 

through mid 2007 resulted in the MSA populaBon increasing by an average of 127,400, or 3.9 percent, 

annually. As the housing crisis began in 2007 and the local economy weakened, populaBon growth slowed 

to an average of only 6,300, or 0.2 percent, annually.  

The local economy in the Phoenix MSA is primarily based on the trade, professional and business services, government, and educaBon and health services sectors. AYer several years of strong growth 

in the mid‐2000s, employment (nonfarm payrolls) declined from the fourth quarter of 2007 through the third quarter of 2010. Since the third quarter of 2010, the economy in the Phoenix MSA 

started to show signs of improvement. As  of the first quarter of 2011, employment totaled 1.7 million, up 0.6 percent compared with a year ago and slightly below the naBon’s job growth rate of 1 

percent during the same period. Despite recent employment gains in the MSA, current payrolls remain 211,700 jobs below the pre‐recession level of three years ago with almost one‐half of job losses 

in the MSA occurring in the construcBon sector. The average unemployment rate was 8.8 percent during the 12 months ending March 2011, the same as a year ago. In comparison, the naBonal 

average unemployment rate during the same period was higher at 9.4 percent, down slightly from 9.7 percent a year ago.  

0 

2 

4 

6 

8 

10 

12 

Unemployment Rate Remains High, But Has Leveled 

Monthly Unemployment Rate (Percent) 

Phoenix MSA  NaBon (Seasonally Adjusted) 

MSA Data Not Seasonally Adjusted 

Source: Bureau of Labor StaBsBcs 

120 

125 

130 

135 

140 

145 

150 

1,600 

1,700 

1,800 

1,900 

2,000 

Millions 

Thousands 

Year and Quarter 

Job Market Conditions are Stabilizing Quarterly Nonfarm Employment 

Phoenix MSA  NaBon (right axis) 

Seasonally Adjusted Data  

Source: Bureau of Labor  StaBsBcs 

Phoenix‐Mesa‐Glendale, Arizona 

                    [insert map] 

This Chart will be updated 

Spotlight on the Phoenix-Mesa-Glendale, Arizona Metropolitan Statistical Area

Date Phoenix MSA Population

Annual Growth Rate From 

Prior Date

4/1/00                            3,251,900                 ‐

7/1/07                            4,175,600 3.9%

4/1/10                            4,192,900 0.2%

Source: Census Bureau (2000 Decennial, 2007 CPS, and 2010 Decennial)

Housing Crisis Has Ended Rapid

 Population Growth in Phoenix

The Obama Administration's Efforts to Stabilize The Housing Market and Help American Homeowners - May 2011 

The Phoenix‐Mesa‐Glendale Metropolitan StaBsBcal Area (MSA), which consists of Maricopa and Pinal CounBes in Arizona, has been one of the 

hardest hit areas in the naBon following the housing market downturn. It is also an area in which the AdministraBon’s broad approach to stabilizing 

the housing market has been very acBve.  This Phoenix MSA addendum to the May 2011 housing scorecard provides a concise summary of local 

trends and condiBons in (1) the economy and housing market, (2) mortgage delinquencies and foreclosures, and (3) the AdministraBon’s key efforts 

to stabilize the housing market and help local homeowners.  

The Phoenix MSA Economy and Housing Market: 

The city of Phoenix is the capital of Arizona and the largest city in the MSA. The populaBon of the MSA has 

grown rapidly since 2000, increasing by a total of 923,700, or 28 percent, to almost 4.2 million as of April 

2010. Net in‐migraBon accounted for two‐thirds of this growth. Rapid employment growth from 2004 

through mid 2007 resulted in the MSA populaBon increasing by an average of 127,400, or 3.9 percent, 

annually. As the housing crisis began in 2007 and the local economy weakened, populaBon growth slowed 

to an average of only 6,300, or 0.2 percent, annually.  

The local economy in the Phoenix MSA is primarily based on the trade, professional and business services, government, and educaBon and health services sectors. AYer several years of strong growth in the 

mid‐2000s, employment (nonfarm payrolls) declined from the fourth quarter of 2007 through the third quarter of 2010. Since the third quarter of 2010, the economy in the Phoenix MSA started to show 

signs of improvement. As  of the first quarter of 2011, employment totaled 1.7 million, up 0.6 percent compared with a year ago and slightly below the naBon’s job growth rate of 1 percent during the same 

period. Despite recent employment gains in the MSA, current payrolls remain 211,700 jobs below the pre‐recession level of three years ago with almost one‐half of job losses in the MSA occurring in the 

construcBon sector. The average unemployment rate was 8.8 percent during the 12 months ending March 2011, the same as a year ago. In comparison, the naBonal average unemployment rate during the 

same period was higher at 9.4 percent, down slightly from 9.7 percent a year ago.  

120 

125 

130 

135 

140 

145 

150 

1,600 

1,700 

1,800 

1,900 

2,000 

Millions 

Thousands 

Year and Quarter 

Job Market CondiOons are Stabilizing 

Quarterly Nonfarm Employment 

Phoenix MSA  NaBon (right axis)  Seasonally Adjusted Data  

Source: Bureau of Labor  StaBsBcs 

Phoenix‐Mesa‐Glendale, Arizona 

                    [insert map] 

0 

2 

4 

6 

8 

10 

12 

Unemployment Rate Remains High, But Has Leveled 

Monthly Unemployment Rate (Percent) 

Phoenix MSA (Not Seasonally Adjusted)  NaBon (Seasonally Adjusted) 

Source: Bureau of Labor StaBsBcs 
 e Obama Administration’s E orts to Stabilize  e Housing Market and Help American Homeowners | May 2011 U.S. Department of Housing and Urban Development | Office of Policy Development and Research

U.S Department of Housing and Urban Development

U.S. Department of the Treasury

Spotlight on Phoenix MSA | Page 2

distressed homes -- foreclosures and short sales – which currently represent 

56 percent of all existing homes sales in the MSA, compared with 35 percent 

nationally. During the fi rst quarter of 2011, existing home sales increased 

by 6 percent compared with the fi rst quarter of 2010, while new home sales 

declined 24 percent during this period. The high proportion of distressed 

sales has kept Phoenix home prices depressed. The CoreLogic repeat-sales 

house price index shows that Phoenix single-family home prices declined by 

49 percent between June 2006 and April 2009, compared with only 31 

percent nationally. Local home prices showed signs of stabilizing during 

most of 2009 and the fi rst half of 2010, but the overall sales market remains 

fragile. As of March 2011, the rental market remains soft with apartment 

vacancy rates at 8.9 percent in the fi rst quarter, down from 12.1 percent 

a year earlier and still above the national average. The average rent 

for a Phoenix apartment, at $755, was up 0.8 percent from a year ago. 

Nationally, the vacancy rate over this period improved to 6.2 percent from 

8.0 percent, while the average rent increased 1.9 percent to $1,047.

Trends in Mortgage Delinquencies and 

Foreclosures:

Phoenix homeowners have struggled with some of the highest levels of 

mortgage delinquency and foreclosure in the nation. As of March 2011, 

Maricopa County had the 4th largest number of mortgages in the nation that 

were 90 days delinquent, or in the process of foreclosure, while Pinal County 

had the 14th highest percentage in the nation compared with counties 

Foreclosure Completi on Rates in Phoenix Outpace The Nati on

Area

First Quarter 2011 Since April 1, 2009

Foreclosure 

Completi ons

Foreclosure 

Rate

Foreclosure

Completi ons

Foreclosure 

Rate

Phoenix 

MSA 15, 067 0.9% 104,542 6.0%

Nati on 215,046 0.2% 1,931,681 1.5%

Note: Foreclosure Rates as Percent of All Housing Units; Data through March 

2011 for Foreclosures

Source: Realty Trac and Census Bureau

Spotlight on the Phoenix-Mesa-Glendale, Arizona Metropolitan Statistic

Foreclosure 

Completions

Foreclosure Rate 

(Percent)

Foreclosure 

Completions

Foreclosure 

Rate (Percent)

Phoenix MSA                        15,067  0.9%                             104,542  6.0%

Nation                     215,046  0.2%                          1,931,681  1.5%

Note:  Foreclosure Rates As Percent of All Housing Units

           Data through March 2011 for Foreclosures

Source: Realty Trac and Census Bureau

Foreclosure Completion Rates in Phoenix Outpace The Nation

First Quarter 2011 Since April 1, 2009

Area

The home sales market remains soP in Phoenix. Unlike in the naQon, 

exisQng home sales in Phoenix rose in both 2008 and 2009 in part due to distressed sales (foreclosure and 

short sales).   Growth in home sales leveled off in 2010. During the first quarter of 2011, exisQng home sales 

once again increased by 6 percent compared with the first quarter of 2010, although new home sales 

declined 24 percent during this period.  Distressed sales currently represent 56 percent of all exisQng homes 

sales in the MSA, compared with 35 percent naQonally. The high proporQon of distressed sales has also kept 

Phoenix home prices depressed. The CoreLogic repeat‐sales house price index shows Phoenix single‐family 

home prices declined by 49 percent compared with only 31 percent naQonally between June 2006 and April 

2009.  Phoenix home sales prices showed signs of stabilizing during most of 2009 and the first half of 2010, 

although the sales market remains fragile. The rental market remained soP and apartment vacancy rates 

remained above the naQonal average during the 12 months ending March 2011.  However, the local rental 

market did show signs of improvement during the past year as Reis  Inc. reported that the Phoenix apartment 

vacancy rate fell to  8.9 percent in the  first quarter of 2011, down from 12.1 percent a year earlier, while the 

average rent, at $755, was up 0.8 percent from a year ago. NaQonally, the vacancy rate over this period 

improved to 6.2 percent from 8.0 percent, while the average rent increased 1.9 percent to $1,047. 

Trends in Mortgage Delinquencies and Foreclosures:    The Phoenix MSA has experienced among the highest levels of mortgage delinquency and foreclosure in 

the naQon. As of March 2011, Maricopa County had the 4th greatest number of mortgages in the naQon 

that were 90+ days delinquent, in foreclosure, or REO, while Pinal County has the 14th highest percentage 

in the naQon compared with counQes with the same or more total mortgages, according to LPS Applied 

AnalyQcs. NegaQve equity mortgages comprise 56 percent of all mortgages in the Phoenix area, more than 

twice the naQonal rate of 23 percent, according to CoreLogic. As a result in part to improving economic 

condiQons and to the efforts of numerous state and local organizaQons and municipaliQes in partner ship 

with the federal government, the number of mortgages currently in foreclosure or at risk has decreased 

during the past year. The number of mortgages that were 90+ days delinquent, in foreclosure, or REO 

declined from 103,200 in March 2010 to 81,900 in March 2011.  

100 

120 

140 

160 

180 

200 

220 

240 

Phoenix Price Declines More Severe an in Nation; Market Remains Fragile 

Housing Price Index for Single‐Family Homes (Jan 2000 = 100) 

Phoenix MSA  NaQon 

Source: CoreLogic 

5 

6 

7 

8 

9 

10 

11 

12 

13 

Sour

0 

2 

4 

6 

8 

10 

12 

14 

16 

Sou

0 

1,000 

2,000 

3,000 

4,000 

5,000 

6,000 

7,000 

0 

20 

40 

60 

80 

100 

120 

140 

2003  2004  2005  2006  2007  2008  2009  2010 

Existing and New Single-Family Home Sales: 

Phoenix Compared to the Nation 

Annual Home Sales (thousands)  

NaQon ExisQng (Right Axis)  NaQon New (Right Axis)  Phoenix MSA ExisQng  Phoenix MSA New 

Sources: Arizona State University Realty Studies, HUD/Census  Bureau, and NaQonal AssociaQon of Realtors 

Spotlight on the Phoenix-Mesa-Glendale, Arizona Metropolitan Statistical Area

ForeclosureCompletionRatesinPhoenixOutpaceTheNation

The home sales market remains soP in Phoenix. Unlike in the naQon, 

exisQng home sales in Phoenix rose in both 2008 and 2009 in part due to distressed sales (foreclosure and 

short sales).   Growth in home sales leveled off in 2010. During the first quarter of 2011, exisQng home sales 

once again increased by 6 percent compared with the first quarter of 2010, although new home sales 

declined 24 percent during this period.  Distressed sales currently represent 56 percent of all exisQng homes 

sales in the MSA, compared with 35 percent naQonally. The high proporQon of distressed sales has also kept 

Phoenix home prices depressed. The CoreLogic repeat‐sales house price index shows Phoenix single‐family 

home prices declined by 49 percent compared with only 31 percent naQonally between June 2006 and April 

2009.  Phoenix home sales prices showed signs of stabilizing during most of 2009 and the first half of 2010, 

although the sales market remains fragile. The rental market remained soP and apartment vacancy rates 

remained above the naQonal average during the 12 months ending March 2011.  However, the local rental 

market did show signs of improvement during the past year as Reis  Inc. reported that the Phoenix apartment 

vacancy rate fell to  8.9 percent in the  first quarter of 2011, down from 12.1 percent a year earlier, while the 

average rent, at $755, was up 0.8 percent from a year ago. NaQonally, the vacancy rate over this period 

improved to 6.2 percent from 8.0 percent, while the average rent increased 1.9 percent to $1,047. 

Trends in Mortgage Delinquencies and Foreclosures:    The Phoenix MSA has experienced among the highest levels of mortgage delinquency and foreclosure in 

the naQon. As of March 2011, Maricopa County had the 4th greatest number of mortgages in the naQon 

that were 90+ days delinquent, in foreclosure, or REO, while Pinal County has the 14th highest percentage 

in the naQon compared with counQes with the same or more total mortgages, according to LPS Applied 

AnalyQcs. NegaQve equity mortgages comprise 56 percent of all mortgages in the Phoenix area, more than 

twice the naQonal rate of 23 percent, according to CoreLogic. As a result in part to improving economic 

condiQons and to the efforts of numerous state and local organizaQons and municipaliQes in partner ship 

with the federal government, the number of mortgages currently in foreclosure or at risk has decreased 

during the past year. The number of mortgages that were 90+ days delinquent, in foreclosure, or REO 

declined from 103,200 in March 2010 to 81,900 in March 2011.  

100 

120 

140 

160 

180 

200 

220 

240 

Phoenix Price Declines More Severe an in Nation; Market Remains Fragile 

Housing Price Index for Single‐Family Homes (Jan 2000 = 100) 

Phoenix MSA  NaQon 

Source: CoreLogic 

5 

6 

7 

8 

9 

10 

11 

12 

13 

Year and Quarter 

Rental Vacancy Rates Remain Above e Nation, 

But Improved Since January 2010 

Quarterly Apartment Rental Vacancy Rates (Percent) 

Phoenix MSA  NaQon 

Source: Reis Inc. 

0 

2 

4 

6 

8 

10 

12 

14 

16 

Phoenix MSA  NaQon 

Source: CoreLogic 

Share of Distressed Mortgages Remains High, But Has Leveled 

Mortgages 90+ Days Delinquent (Percent) 

0 

1,000 

2,000 

3,000 

4,000 

5,000 

6,000 

7,000 

0 

20 

40 

60 

80 

100 

120 

140 

2003  2004  2005  2006  2007  2008  2009  2010 

Existing and New Single-Family Home Sales: 

Phoenix Compared to the Nation 

Annual Home Sales (thousands)  

NaQon ExisQng (Right Axis)  NaQon New (Right Axis)  Phoenix MSA ExisQng  Phoenix MSA New 

Sources: Arizona State University Realty Studies, HUD/Census  Bureau, and NaQonal AssociaQon of Realtors 

Spotlight on the Phoenix-Mesa-Glendale, Arizona Metropolitan Statistical Area

Foreclosure 

Completions

Foreclosure Rate 

(Percent)

Foreclosure 

Completions

Foreclosure 

Rate (Percent)

Phoenix MSA                        15,067  0.9%                             104,542  6.0%

Nation                     215,046  0.2%                          1,931,681  1.5%

Note:  Foreclosure Rates As Percent of All Housing Units

           Data through March 2011 for Foreclosures

Source: Realty Trac and Census Bureau

Foreclosure Completion Rates in Phoenix Outpace The Nation

First Quarter 2011 Since April 1, 2009

Area

The home sales market remains soP in Phoenix. Unlike in the naQon, 

exisQng home sales in Phoenix rose in both 2008 and 2009 in part due to distressed sales (foreclosure and 

short sales).   Growth in home sales leveled off in 2010. During the first quarter of 2011, exisQng home sales 

once again increased by 6 percent compared with the first quarter of 2010, although new home sales 

declined 24 percent during this period.  Distressed sales currently represent 56 percent of all exisQng homes 

sales in the MSA, compared with 35 percent naQonally. The high proporQon of distressed sales has also kept 

Phoenix home prices depressed. The CoreLogic repeat‐sales house price index shows Phoenix single‐family 

home prices declined by 49 percent compared with only 31 percent naQonally between June 2006 and April 

2009.  Phoenix home sales prices showed signs of stabilizing during most of 2009 and the first half of 2010, 

although the sales market remains fragile. The rental market remained soP and apartment vacancy rates 

remained above the naQonal average during the 12 months ending March 2011.  However, the local rental 

market did show signs of improvement during the past year as Reis  Inc. reported that the Phoenix apartment 

vacancy rate fell to  8.9 percent in the  first quarter of 2011, down from 12.1 percent a year earlier, while the 

average rent, at $755, was up 0.8 percent from a year ago. NaQonally, the vacancy rate over this period 

improved to 6.2 percent from 8.0 percent, while the average rent increased 1.9 percent to $1,047. 

Trends in Mortgage Delinquencies and Foreclosures:    The Phoenix MSA has experienced among the highest levels of mortgage delinquency and foreclosure in 

the naQon. As of March 2011, Maricopa County had the 4th greatest number of mortgages in the naQon 

that were 90+ days delinquent, in foreclosure, or REO, while Pinal County has the 14th highest percentage 

in the naQon compared with counQes with the same or more total mortgages, according to LPS Applied 

AnalyQcs. NegaQve equity mortgages comprise 56 percent of all mortgages in the Phoenix area, more than 

twice the naQonal rate of 23 percent, according to CoreLogic. As a result in part to improving economic 

condiQons and to the efforts of numerous state and local organizaQons and municipaliQes in partner ship 

with the federal government, the number of mortgages currently in foreclosure or at risk has decreased 

during the past year. The number of mortgages that were 90+ days delinquent, in foreclosure, or REO 

declined from 103,200 in March 2010 to 81,900 in March 2011.  

100 

120 

140 

160 

180 

200 

220 

240 

Phoenix Price Declines More Severe an in Nation; Market Remains Fragile 

Housing Price Index for Single‐Family Homes (Jan 2000 = 100) 

Phoenix MSA  NaQon 

Source: CoreLogic 

5 

6 

7 

8 

9 

10 

11 

12 

13 

Year and Quarter 

Rental Vacancy Rates Remain Above e Nation, 

But Improved Since January 2010 

Quarterly Apartment Rental Vacancy Rates (Percent) 

Phoenix MSA  NaQon 

Source: Reis Inc. 

0 

2 

4 

6 

8 

10 

12 

14 

16 

Phoenix MSA  NaQon 

Source: CoreLogic 

Share of Distressed Mortgages Remains High, But Has Leveled 

Mortgages 90+ Days Delinquent (Percent) 

0 

1,000 

2,000 

3,000 

4,000 

5,000 

6,000 

7,000 

0 

20 

40 

60 

80 

100 

120 

140 

2003  2004  2005  2006  2007  2008  2009  2010 

Existing and New Single-Family Home Sales: 

Phoenix Compared to the Nation 

Annual Home Sales (thousands)  

NaQon ExisQng (Right Axis)  NaQon New (Right Axis)  Phoenix MSA ExisQng  Phoenix MSA New 

Sources: Arizona State University Realty Studies, HUD/Census  Bureau, and NaQonal AssociaQon of Realtors 

Spotlight on the Phoenix-Mesa-Glendale, Arizona Metropolitan Statistical Area

The home sales market remains soP in Phoenix. Unlike in the naQon, 

exisQng home sales in Phoenix rose in both 2008 and 2009 in part due to distressed sales (foreclosure and 

short sales).   Growth in home sales leveled off in 2010. During the first quarter of 2011, exisQng home sales 

once again increased by 6 percent compared with the first quarter of 2010, although new home sales 

declined 24 percent during this period.  Distressed sales currently represent 56 percent of all exisQng homes 

sales in the MSA, compared with 35 percent naQonally. The high proporQon of distressed sales has also kept 

Phoenix home prices depressed. The CoreLogic repeat‐sales house price index shows Phoenix single‐family 

home prices declined by 49 percent compared with only 31 percent naQonally between June 2006 and April 

2009.  Phoenix home sales prices showed signs of stabilizing during most of 2009 and the first half of 2010, 

although the sales market remains fragile. The rental market remained soP and apartment vacancy rates 

remained above the naQonal average during the 12 months ending March 2011.  However, the local rental 

market did show signs of improvement during the past year as Reis  Inc. reported that the Phoenix apartment 

vacancy rate fell to  8.9 percent in the  first quarter of 2011, down from 12.1 percent a year earlier, while the 

average rent, at $755, was up 0.8 percent from a year ago. NaQonally, the vacancy rate over this period 

improved to 6.2 percent from 8.0 percent, while the average rent increased 1.9 percent to $1,047. 

100 

120 

140 

160 

180 

200 

220 

240 

Phoenix Price Declines More Severe an in Nation; Market Remains Fragile 

Housing Price Index for Single‐Family Homes (Jan 2000 = 100) 

Phoenix MSA  NaQon 

Source: CoreLogic 

5 

6 

7 

8 

9 

10 

11 

12 

13 

Year and Quarter 

Rental Vacancy Rates Remain Above e Nation, 

But Improved Since January 2010 

Quarterly Apartment Rental Vacancy Rates (Percent) 

Phoenix MSA  NaQon 

Source: Reis Inc. 

0 

2 

4 

6 

8 

10 

12 

14 

16 

Phoenix MSA  NaQon 

Source: CoreLogic 

Share of Distressed Mortgages Remains High, But Has Leveled Mortgages 90+ Days Delinquent (Percent) 

0 

1,000 

2,000 

3,000 

4,000 

5,000 

6,000 

7,000 

0 

20 

40 

60 

80 

100 

120 

140 

2003  2004  2005  2006  2007  2008  2009  2010 

Existing and New Single-Family Home Sales: 

Phoenix Compared to the Nation 

Annual Home Sales (thousands)  

NaQon ExisQng (Right Axis)  NaQon New (Right Axis)  Phoenix MSA ExisQng  Phoenix MSA New 

Sources: Arizona State University Realty Studies, HUD/Census  Bureau, and NaQonal AssociaQon of Realtors 

with the same or more total mortgages, according to LPS Applied 

Analytics. More than half of all mortgages in the Phoenix area (56%) 

are in negative equity -- more than twice the national rate (23%), 

according to CoreLogic. However, due in part to improving economic 

conditions and to the efforts of numerous state and local organizations 

and municipalities in partnership with the federal government, 

the number of mortgages at risk of foreclosure (90 or more days 

delinquent or in the process of foreclosure) declined during the past 

year from 103,200 in March 2010 to 81,900 in March 2011. 
 e Obama Administration’s E orts to Stabilize  e Housing Market and Help American Homeowners | May 2011 U.S. Department of Housing and Urban Development | Office of Policy Development and Research

U.S Department of Housing and Urban Development

U.S. Department of the Treasury

Spotlight on Phoenix MSA | Page 3

 e Administration’s E orts to Stabilize 

the Phoenix MSA Market: 

Since April 1, 2009 (through March 2011) more than 65,000 mortgage 

assistance interventions have been offered to Phoenix area homeowners through 

the Administration’s assistance programs (Home Affordable Modifi cation 

Program and FHA’s loss mitigation and early delinquency intervention programs). 

An additional 40,000 to 42,000 proprietary modifi cations are estimated to 

have been offered through Hope Now Alliance servicers, bringing the total 

for the metropolitan area to about 106,500 interventions offered. While 

some homeowners may have received help from more than one program, the 

number of times assistance has been offered is close to the very high number 

of foreclosures completed during this period (104,500) in the Phoenix-MesaGlendale MSA, which has been one of the hardest hit areas in the nation. 

In addition to offers of mortgage aid to homeowners, the Administration’s 

Neighborhood Stabilization Program (NSP) and Hardest Hit Fund (HHF) have 

both contributed toward signs of housing market stability in the Phoenix area.

Spotlight on the Phoenix-Mesa-Glendale, Arizona Metropolitan Statistical Area

orts to Stabilize the Phoenix MSA Market: 

d of March 2011 more than 65,000 mortgage assistance 

o Phoenix area homeowners through the Administra>on’s 

able Modifica>on Program and FHA’s loss mi>ga>on and early 

s).  An addi>onal 40,000 to 42,000 proprietary modifica>ons 

d through Hope Now Alliance servicers, bringing the total for 

6,500 interven>ons offered. While some homeowners may 

n one program, the number of >mes assistance has been 

mber of foreclosures completed during this period (104,500) in 

d to homeowners, the Administra>on’s Neighborhood 

rdest Hit Fund (HHF) have both contributed toward achieving 

oenix MSA.  

es of Phoenix, Mesa, Glendale, Avondale, Chandler, Surprise 

the State of Arizona have received NSP grants.  Overall, 

1,935,463 in NSP3 funds have been awarded to these seven 

y of Phoenix administers $60,000,000 and the na>onal non‐

ts to invest $30,583,000 in the Phoenix metro area.   

0 

20 

40 

60 

80 

100 

120 

Mortgage Aid Extended More an 106,000 

Times To Mitigate Rising Foreclosures Phoenix MSA: Cumula>ve Offers of Aid by Source Compared with Foreclosures Since April 1, 2009  (Thousands) 

FHA Loss Mi>ga>on  Hamp Modifica>ons  Es>mated Hope Now Modifica>ons  Foreclosure Comple>ons 

Note:  Data on Hope Now proprietary mortgage modifica>ons not available at metropolitan area level. However, Hope Now Alliance reports 55,200 

non‐HAMP modifica>ons since April 1, 2009 in the state of AZ, of which 75 percent are es>mated by HUD to have occurred in the Phoenix MSA. 

Sources:  Departments of HUD and Treasury, Hope Now Alliance, and Realty Trac. 

Mortgage Aid Offers in Phoenix MSA From April 2009 through March 2011: 106,500 

Foreclosure Comple>ons Over Same Period:  104,500 

• The City of Phoenix is using NSP dollars to implement an innova>ve energy efficiency plan by leasing solar panels 

to buyers of NSP proper>es using NSP funds pay the en>re upfront costs of the lease. This allows the homeowner to 

have no monthly payments while benefi>ng from approximately 30% reduced u>lity costs, making the homes more 

affordable over >me.  

• NSP outreach is promo>ng homeownership values and s>mula>ng the market with a 460% increase in applica>on 

interest since the beginning of January 2011. With the help of an NSP homebuyer assistance program, owner 

occupant homebuyers have purchased or are under contract to purchase 200 single‐family homes.  With an average 

mortgage amount of $90,000, the program has ini>ated $18 million in homebuyer investment within Phoenix.  In 

addi>on, more than 1,600 mul>‐family rental units have been acquired for rehabilita>on and re‐occupancy.  Of 

these, 988 are reserved for families with income at or below 50% of area median income. 

 • As leverage to NSP investments in West Phoenix and Maryvale neighborhoods, a $200,000 grant to rehabilitate 65 

owner occupied homes has been contributed by Wells Fargo Leading the Way Home Priority Markets to complement 

and support NSP revitaliza>on work  

All seven jurisdic>ons in the Phoenix area are faced with market condi>ons that reflect rela>vely new housing stock 

and a need for absorp>on of already exis>ng homes. Therefore, NSP is mainly targe>ng homeownership assistance 

and rehabilita>on of exis>ng residen>al structures. The Phoenix MSA has provided homeownership assistance for 

479 households and rehabilitated 60 units with thousands more projected for the remainder of the NSP programs. 

Using a grant under the HHF program, the Arizona Department of Housing (ADOH) launched the Save Our Home AZ 

program on September 23, 2010, running the program as a pilot with a controlled roll‐out through December 31, 

2010. Under  the ADOH program, applicants must demonstrate that their inability to pay their mortgage is the result 

of a specific hardship . Many forms of assistance would be available, including mortgage principal reduc>on, rate 

decrease, and/or term extension.  In the first quarter of 2011, one major servicer/lender, Bank of America, signed a 

par>cipa>on agreement with the program. Mortgage assistance  through that servicer is not expected to be 

reported un>l the 2nd Quarter of 2011. Nego>a>ons con>nue with other lending ins>tu>ons and servicers.  

  

already benefiled from NSP and ac>vi>es funded by the 

stance to another 3,500 owner and renter households. 

re being used include: 

mplex in Phoenix had become notorious for crime, vandalism, 

leading to 20% occupancy and squamng of vacant units. 

d will rehabilitate the complex. Half of the units will be for 

 for moderate income persons. 

2‐unit complex that struggled with code viola>ons, crime, and 

of Maricopa County’s worst slum proper>es, was acquired 

moli>on project u>lized a green approach to minimize the 

and other waste facili>es.  The city’s vision for the future is to 

nted residen>al development project.  

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7 8 9

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Phoenix MSA NSP Acti vity (Housing Units) Projected Completed

NSP1 2068 479

Clearance and demoliti on 19 5

Constructi on of new housing 6 0

Homeownership assistance to low- and 

moderate-income 514 419

Rehabilitati on/reconstructi on of residenti al 

structures 1548 60

NSP2 1423 0

Clearance and demoliti on 30 0

Rehabilitati on/reconstructi on of residenti al 

structures 1423 0

NSP3 715 0

Clearance and demoliti on 15 0

Homeownership assistance to low- and 

moderate-income 160 0

Rehabilitati on/reconstructi on of residenti al 

structures 555 0

Seven jurisdictions in the MSA (cities of Phoenix, Mesa, Glendale, Avondale, 

Chandler, Surprise Town, and Maricopa County) plus the State of Arizona have 

received NSP grants. Overall, $72,375,065 in NSP1 funds and $31,935,463 in 

NSP3 funds have been awarded to these seven jurisdictions. Under NSP2, the City 

of Phoenix administers $60,000,000 and the national non-profi t Chicanos Por La 

Causa expects to invest $30,583,000 in the Phoenix metro area. Approximately 

500 households have already benefi tted from NSP and activities funded by the 

program are expected to provide help to an additional 3,500 owner and renter 

households. Examples of how the funds are being used include:

• The 523-unit Park Lee apartment complex in Phoenix had become notorious 

for crime, vandalism, drug activity, and poor maintenance, leading to 20% 

occupancy and squatting of vacant units. Using NSP funds, the City acquired 

and will rehabilitate the complex. Half of the units will be for very low income 

persons and the rest for moderate income persons.

• The Sunset Manor Apartments, a 52-unit complex that struggled with code 

violations, crime, and blight earning the reputation as one of Maricopa 

County’s worst slum properties, was acquired through NSP and demolished. 

The demolition project used a green approach to minimize the amount 

of materials sent to landfi lls and other waste facilities -- at completion, 75 

percent of the demolition materials were salvaged or recycled. The city’s 

vision for the future is to redevelop the land with a transit-oriented residential 

development project.

• The City of Phoenix is using NSP funds to pay an innovative energy 

effi ciency plan by leasing solar panels to buyers of NSP properties 

using NSP funds to pay the entire upfront costs of the lease. This allows 

the homeowner to have no monthly payments while benefi ting from 

approximately 30% reduced utility costs, making the homes more 

affordable over time. 

• NSP outreach is promoting stable home values and stimulating the 

market. With a 460% increase in applications since the beginning of 

January 2011, an NSP homebuyer assistance program has helped 

owner occupant homebuyers purchase or contract to purchase 200 

single-family homes. With an average mortgage amount of $90,000, 

the program has initiated $18 million in homebuyer investment within 

Phoenix. In addition, more than 1,600 multifamily rental units have been 

acquired for rehabilitation and re-occupancy. Of these, 988 are reserved 

for families with income at or below 50% of area median income.

• As leverage to NSP investments in West Phoenix and Maryvale 

neighborhoods, a $200,000 grant to rehabilitate 65 owner occupied 

homes has been contributed by Wells Fargo Leading the Way Home 

Priority Markets to complement and support NSP revitalization work. 

All seven jurisdictions in the Phoenix area are faced with market conditions 

that refl ect relatively new housing stock and a need for absorption of already 

existing homes. Therefore, NSP is mainly targeting homeownership assistance 

and rehabilitation of existing residential structures. The Phoenix MSA has 

provided homeownership assistance for 479 households and rehabilitated 60 

units with thousands more projected for the remainder of the NSP programs.

The Arizona Department of Housing (ADOH) received almost $268 million 

through the Hardest Hit Fund to launch the Save My Home AZ program. Save 

My Home AZ now includes four major initiatives: permanent modifi cations 

utilizing principal reduction for “underwater” mortgages; second mortgage 

assistance; mortgage assistance to help unemployed homeowners make their 

mortgage payments while looking for re-employment; and transition assistance 

to help homeowners who can no longer afford their home complete a short 

sale or deed-in-lieu of foreclosure. All major national servicers are participating 

in at least one of Arizona’s programs. Homeowners must demonstrate a 

fi nancial hardship and meet other eligibility criteria to qualify, and can enter 

the program with the assistance of a local HUD-approved housing counselor. 

Arizona has this assistance available until the end of 2017 to help prevent 

avoidable foreclosures.