Construction of New Scottsdale Homes Dwindling

As of July, the median price of Scottsdale homes was "$560,000 citywide and $667,450 north of Indian Bend Road," a 44 percent increase since 2004.

Local real estate agents claim that the limited construction of new Scottsdale homes is keeping housing prices high because there is so little competition. Scottsdale reporter Peter Corbett claims that when he went in search of affordable new Scottsdale homes, the cheapest he could find was $600,000, which with upgrades could easily cost an extra $50,000. In an article Corbett writes, "buyers pay a premium to have a Scottsdale address, especially with such limited supply of new homes."

In 2004, only 1,385 single-family Scottsdale home construction permits were issued, down from 3,200 in 19999. "Chandler, with a comparable population to Scottsdale, issued nearly 4000 permits" last year. This dwindling supply of Scottsdale homes means that current buyers will have to be ready to pay about $700,000 for new construction or start looking at older homes or houses outside the city.