Rumblings in the media hint that rising home prices could be the start of a new bubble, but real estate expert Mike Orr says that researchers who are examining the data don’t believe it. Instead, he says Phoenix is experiencing a market come back. The market continues to be complex, however, with supply constrained and the homebuilding industry cautious. Based on March data for land transactions, the hot area for homebuilding is likely to be Southeast Gilbert, Southeast Mesa and Queen Creek.

Although many people may find it hard to believe, the Phoenix area is facing a growing housing shortage, according to real estate experts Mike Orr and Mark Stapp from the W. P. Carey School of Business, who were featured speakers at a forum on April 6. And, the future may bring more dense developments and urbanization of the suburbs.

In a market with chronic supply shortages, normal demand can drive prices up. That continues to be the case in the Phoenix market, according to Mike Orr, director of the W. P. Carey School’s Center for Real Estate Theory and Practice and author of the monthly Phoenix housing report. After a mid-winter lull, housing prices are climbing again, further dampening what was already waning investor interest. And that upward pricing trend may be one reason homebuilders are in no hurry to increase production, despite buyer interest: waiting should mean getting more for new homes.

Student loan debt is high and growing, but is this a crisis? At a recent Economic Club of Phoenix luncheon, W. P. Carey Dean Amy Hillman and economist Lee McPheters examined the cost and the return of higher education, both for individuals and society. McPheters says, “If you want to be paid more, you need to make yourself worth more.” Hillman points out that in addition to the personal consequences, society pays when young people do not pursue a higher education.