Investors, Partners, and Friends,

Phoenix continues to experience record-setting growth, fueled by accelerating job creation in the semiconductor, healthcare, and advanced manufacturing sectors. In this month’s Rockview Review, we examine the structural forces behind this expansion and explore how they are driving durable, long-term demand for multifamily housing across the Phoenix MSA. We hope you find this month’s insights valuable.

Phoenix’s Evolution Since 2008: From Boom-Bust to Durable Growth

In the wake of the 2008 financial crisis, Phoenix was widely seen as the epicenter of speculative growth—driven by housing oversupply, a sensitive, low-knowledge-based labor pool, and construction-led demand. But over the past 15 years, the Phoenix economy has undergone a fundamental transformation.

·       Demographic & Employment Expansion: Since 2008, the metro has added over 1 million residents and created hundreds of thousands of new jobs in high-value industries like semiconductors, logistics, healthcare, and corporate services.

·       Structural Advantages Driving Capital: Phoenix is no longer reliant on population growth alone—it is attracting capital, companies, and talent because of its structural advantages: cost competitiveness, business-friendly policy, infrastructure capacity, and a deepening talent pipeline.

We at Rockview Capital are bullish on the long-term growth prospects of Phoenix—so bullish that Enrique Huerta-Del Real, our Co-Founder and Principal, relocated there earlier this year to lead our expansion in the region.

Case Study: TSMC’s $100B Expansion Brings Total Arizona Investment to $165B

The COVID-19 pandemic exposed America’s overreliance on foreign nations—particularly China and Taiwan—for critical technologies like advanced semiconductor chips. In response, the U.S. launched a national push to restore domestic chip manufacturing. Phoenix is now central to that effort.

In March 2025, Taiwan Semiconductor Manufacturing Company (TSMC) announced a monumental $100 billion expansion of its Arizona operations, elevating its total investment to $165 billion. This marks the largest foreign direct investment in U.S. history and reinforces Phoenix's status as a global semiconductor hub (TSMC).

Pictured: TSMC Chairman and CEO Dr. C.C. Wei announces a $100 billion expansion of the company’s Arizona operations at the White House, alongside President Donald Trump.

Strategic Location and Infrastructure

TSMC’s Arizona operations are anchored in North Phoenix’s Fab 21 complex. The expansion includes:

·       Three new semiconductor fabrication plants

·       Two advanced packaging facilities

·       A dedicated R&D center

These facilities will support AI, mobile, and high-performance computing applications.

Economic and Employment Impact

The expansion is expected to generate substantial economic benefits:

·       Construction Jobs: Approximately 40,000 construction jobs will be created over the next four years (TSMC).

·       High-Tech Positions: Tens of thousands of high-paying, high-tech jobs in advanced chip manufacturing and research and development are anticipated.

·       Economic Output: The project is projected to drive over $200 billion in indirect economic output across Arizona and the United States in the coming decade.

Why Companies Are Choosing to Invest in Phoenix

1. Public-Private Alignment Enables Speed and Scale

Following the 2008 financial crisis, Arizona state leadership made a deliberate shift toward diversifying the economy and reducing dependence on construction and population-driven growth.

·       Regulatory Reform & Red Tape Reduction: Overhauled frameworks, cut taxes, and eliminated bureaucratic barriers that had previously slowed business expansion.

·       Job Training & Economic Development: Launched job training programs, revamped permitting processes, and created dedicated economic development agencies to attract high-value industries and fast-track projects.

·       Local Municipal Support: Cities like Phoenix, Mesa, and Chandler provide Foreign Trade Zones, fee waivers, and zoning pre-approvals, enabling companies to break ground quickly.

·       Speed of Execution: TSMC’s first fab was permitted and under construction within one year—a timeline unheard of for a facility of its scale. This agility is a key differentiator for Phoenix in corporate site selection.

2. Labor Pipeline: Engineering at Scale

Phoenix is producing—and attracting—the labor force required to operate next-gen facilities.

·       ASU as a Talent Engine: Arizona State University (ASU) graduates more engineers than any university in the U.S., having awarded over 7,400 engineering degrees in 2024 alone (ASU Engineering).

·       Technical Workforce Development: Maricopa Community Colleges have launched fast-track certificate programs in semiconductor manufacturing, electrical maintenance, and clean room operations.

·       Migration-Fueled Growth: The region’s growing population bolsters workforce availability. Phoenix added over 63,000 net new residents in 2024, with the majority being working-age adults (Eller College of Management).

3. Strategic Location & Risk Mitigation

Phoenix’s location and environmental profile provide unique advantages for businesses seeking operational efficiency and risk mitigation.

·       Transportation Infrastructure: Phoenix’s central position in the Southwest provides superior logistics reach. With direct access to Interstate 10 (connecting to California and Texas) and Interstate 17 (northward to Flagstaff and future I-11 to Las Vegas), Phoenix serves as a key inland distribution hub. Next-day ground delivery reaches over 75 million consumers across the Western U.S.

Pictured: List of Amazon Fulfillment locations in Arizona.

·       Low Natural Disaster Risk: Unlike coastal and central U.S. regions, Phoenix faces minimal exposure to hurricanes, earthquakes, or major flooding, which is critical for industries requiring uninterrupted operations, such as semiconductor manufacturing, data centers, and logistics hubs.

·       Sky Harbor International Airport: Ranked among the top 10 busiest airports in the U.S., Sky Harbor offers extensive domestic and expanding international connections. It also serves as a critical cargo hub, supporting the rapid movement of high-value goods and components for manufacturing and tech sectors.

Together, these factors create an environment where businesses can scale efficiently, mitigate operational risks, and access critical markets—all while maintaining lower costs and higher predictability.

The Rockview View

Phoenix’s job growth isn’t coincidental or cyclical, it’s structural. It reflects a coordinated ecosystem of policy, infrastructure, education, and private-sector investment that together make the region one of the most compelling long-term markets for real estate capital.

While the multifamily market in Phoenix is currently experiencing short-term supply imbalances, these will normalize over time. The underlying demand drivers—employment growth, in-migration, and sector diversification—are long-duration trends. That’s why we remain bullish on the region’s long-term trajectory.

To learn more about our investment strategy in Phoenix and beyond, book a time with me here.

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Regards,

Ashton Asherian | Co-Founder and Principal
​Rockview Capital | www.RockviewCap.com
​9171 Wilshire Blvd, Suite 500, Beverly Hills, CA 90210