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Are Supply Chain Disruptions Impacting Home Builds In Arizona?

Building Timelines

It’s no secret that supply chain disruptions have made home-building more challenging. With things slowly returning to normal, many wonder whether these issues are easing up. For those planning to build in Scottsdale or Paradise Valley—two of Arizona’s most desirable luxury markets—the big question is: What’s the current timeline for new builds? Here’s what you need to know from an industry insider’s perspective on the state of luxury home construction in the area.

Luxury Real Estate Still Has Its Place

Despite rising interest rates and inflation, parts of Arizona’s luxury market are holding steady. Paradise Valley, in particular, remains a hot spot for sellers. According to market reports, luxury demand remains strong, and this is largely due to the limited availability of both resale homes and vacant land. Unlike lower price points, many luxury buyers are less affected by interest rate fluctuations.

While price appreciation has cooled somewhat, home prices in the broader luxury market aren’t expected to drop anytime soon. That makes this a good time to start planning your custom home build—before material and labor costs climb further.

Also Read: How Smart Home Technology Is Redefining High-End Real Estate

A luxury home under construction in a scenic desert community, surrounded by natural landscape and mountain views in the distance.

Supply Chain Issues Continue To Linger

How Long Does It Take To Build A Luxury Home?

In the past, building a custom home took about two years from design to completion. However, with ongoing supply chain disruptions and labor shortages, that timeline has lengthened. Many developers in Scottsdale and Paradise Valley report that, depending on the complexity of the project, building could now take up to three years.

  • Home size & complexity affect build time
  • Pre-2020: Custom homes took around 2 years
  • Current projects may take an extra year due to delays

Planning ahead and setting realistic expectations will help you navigate the process.

Building In The Arizona Desert Requires Expertise

Constructing a home in the Sonoran Desert comes with its own unique set of challenges. The extreme heat, potential wildfires, and drought conditions can impact construction schedules. Top builders in Arizona know how to manage these issues, offering solutions such as energy-efficient materials and water-saving systems designed for the desert environment.

For those building on hillside lots in Paradise Valley, there are additional regulations to keep in mind. Building on these properties often involves more permits, public meetings, and neighbor notifications. Working with a builder who understands these requirements is crucial for a smooth process.

Also Read: The Impact Of The Lock-In Effect On Today’s Real Estate Market

A luxury home under construction in a scenic desert community, surrounded by natural landscape and mountain views in the distance.

Building A Home In AZ Can Take Several Years

How Serious Are The Supply Chain Issues?

Supply chain disruptions are still a significant hurdle for builders across the country. The National Association of Home Builders has reported that material shortages are more widespread than at any point since the 1990s. Builders are struggling to source everything from lumber and framing materials to appliances and custom finishes. This can extend not only the construction timeline but also the time it takes to furnish and finish your luxury home.

  • 90% of builders report material shortages
  • Delays in sourcing appliances & lumber
  • Furnishing custom homes could take up to a year

Being prepared for these delays and working with a proactive team can help minimize the impact on your build.

Demand For Luxury Homes In Scottsdale & Paradise Valley

Despite ongoing challenges with supply chains and labor, demand for luxury homes in Paradise Valley and properties in Scottsdale hasn’t diminished. The market remains competitive, with high-end buyers continuing to seek out properties in these prestigious areas. If you’re planning to build or buy a luxury home, it’s more important than ever to work with experts who understand both the local market and the complexities of custom home construction. Those who can anticipate and navigate these challenges are in the best position to succeed in today’s luxury real estate market.

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