08/27/2026
Arizona: Semiconductors vs. Water Risk
Arizona finds itself at the crossroads of opportunity and challenge, especially as the semiconductor sector continues to expand. With Phoenix now home to over 140,000 semiconductor-related jobs and new fabs in North Phoenix and Chandler fueling even greater demand, we're witnessing a major shift in our local economy. A second fab near Phoenix has just wrapped up construction, aiming for full production by 2027—which explains why many investors are eyeing the current plateau in prices as a potential entry point.
However, as both a long-time insurance agent and a local resident, I’m mindful of the other side of growth: water. Our state draws about one-third of its water from the Colorado River, and with policy changes looming after 2026, further cuts seem likely. Local water managers believe cities can handle these reductions without disrupting service, but we should all expect to see more conservation measures, stricter efficiency requirements, and perhaps even drought surcharges.
On the housing front, Phoenix’s market has cooled from its recent highs, but most experts view this as a return to normal rather than a cause for concern. Modest price growth in the low single digits is forecasted for the near term. For those thinking about the long-term security of their homes or businesses, these overlapping trends highlight how important it is to stay informed about both economic opportunity and underlying risks. My insurance background often puts me at the intersection of these conversations—helping clients anticipate and protect against the evolving landscape we share here in Arizona.
