Living in a dry basin, Phoenix, Arizona is facing a unique challenge when it comes to water and development. With ground water being the primary source of water for the city, the city has been forced to restrict building permits due to a lack of water. This has sent developers and planning groups scrambling to find and buy water for projects.
As a resident of a completely different part of the country, I often wonder how Phoenix manages to sustain growth with such limited water resources. To make matters worse, Phoenix’s water use is around double that of New York City, but with less people.
This brings up the question of what long-term implications this could have on the housing market, both positive and negative. If developers are unable to secure enough water to support projects, there could be a decrease in the supply of housing, which could lead to a rise in prices. On the other hand, if news of the lack of water gets out, it could deter people from moving to the area, which would also lead to a decrease in supply.
So what measures is the city taking to address the water shortage? For starters, Phoenix has implemented a tiered water rate system, which charges residents higher rates for higher water use. This incentivizes lower water use and could help to reduce the amount of water used in the city. Additionally, the city has implemented water-efficient building codes, which require developers to meet certain standards for water efficiency.
At the end of the day, it’s up to the city of Phoenix to decide between agricultural use and people use when it comes to water. There is no easy answer, but with smarter building codes and incentives for water conservation, the city could make a positive impact on water use in the area.