“Historically, Phoenix has been pretty heavily semiconductor or hospitality focused,” says Stephens. “Moving forward, looking at 2025 and beyond, it still seems like [there is plenty of momentum in those markets] to keep things moving for a while.”

While total construction starts declined in 2024, they are projected to jump in 2025 from an estimated $25 billion to nearly $29 billion. Residential construction will continue its climb to accommodate population growth, and the sector is expected to surpass 2022 levels.

Stephens says that while statewide Arizona has some large projects on the way, “probably the biggest change in the market has been that so many of the Tier 1 clients have started building here in the valley; it has really kind of been a game-changer as far as just the amount of work,” he adds.