A Texas company has broken ground on a large development outside of Phoenix that aims to eventually add 6,500 single-family houses to a burgeoning Sun Belt region.
Castle Hill Partners of Austin, Texas, is preparing lots for Lennar and Taylor Morrison, the first two homebuilders at the 572-unit first phase of Saddleback in Peoria, Arizona, according to Carlee Ryan, the firm's vice president of asset management.
The first homes are expected to be ready for occupancy by mid-2026, but the builders have not yet announced price ranges. The 5,300-acre project could take 15 years or more to build out.
Demand for homes is especially strong in Arizona and across the Sun Belt, analysts say. The region covering parts or all 18 states in the U.S. Southeast and Southwest offers warm climates, robust job growth and, in some cases, favorable tax laws.
In response to big demand in the Phoenix metropolitan area, builders in the region plan to pull 23,000 single-family building permits this year and sell close to 22,000 homes, according to Jim Daniel, president of RL Brown Housing Reports, a Phoenix-area research firm.
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The local job base that traditionally was cotton, copper and construction has diversified to include technology, including Taiwan Semiconductor Manufacturing Co., a major employer in the region, Daniel said in an interview.
"We are growing at a healthy clip right now," he said.
Peoria, located in Maricopa County, is about 20 miles northwest of Phoenix. Castle Hill expects to bring in additional builders, but the developer is focused on the initial phase for now, Ryan said in an interview.
Saddleback eventually could have apartments and other commercial components, depending on market demand at the time, she said.
"As Phoenix continues to grow, a lot of people are looking to the Northwest Valley and the opportunity for homes there," Ryan said.
