Arizona: Semiconductors vs. Water Risk

Arizona's investment story centers on semiconductors, with Phoenix already holding >140K related jobs and demand expected to strengthen near North Phoenix and Chandler fabs.
A second fab near Phoenix had completed construction, with volume production expected in 2027, leaving some investors viewing today's price plateau as an entry window.
Arizona's Colorado River allocation supplies ~one-third of statewide water use, and discussions on rules beyond 2026 pointed to further cuts for Arizona.
Local water managers said cities could manage added cuts without service disruptions, though conservation, efficiency requirements, and possible drought surcharges looked increasingly likely.
Phoenix housing had cooled from boom-era highs, but analysts largely viewed it as normalization, with near-term price growth expected in a low-single-digit range.