A high-profile affordable housing development near Chandler is officially dead after months of fierce neighborhood opposition. Here’s what investors should know:
- Developer Backs Out: Dominium, a prominent affordable housing developer, is selling its 23-acre parcel near Ocotillo Rd. and Arizona Ave.—land located on a Maricopa County island within Chandler city limits.
- Controversial Plan: The project was initially proposed with 500 multifamily units but was revised to 218 age-restricted units for seniors (55+). Even the scaled-down version drew strong NIMBY opposition from nearby residents.
- Symbol of Resistance: The Dominium proposal became emblematic of broader anti-density, anti-affordable housing sentiments across metro Phoenix.
- Zoning Challenges: While the project received a recommendation for approval from the county’s planning commission, the Maricopa County Board of Supervisors indefinitely postponed its hearing in late 2024—effectively halting progress.
- Market Insight for Investors: Arizona’s chronic zoning imbalance is a key barrier to multifamily development. Of 1.4 million acres zoned for residential use in metro Phoenix, only 52,000 acres allow for multifamily housing—an issue that continues to stifle supply despite surging demand.
- Dominium’s Take: The developer emphasized the importance of building housing across all income levels and reaffirmed their commitment to tackling Arizona’s housing crisis elsewhere.
📈 Investor Takeaway: Despite booming demand, high opposition to new multifamily development—especially in affluent suburban areas—continues to limit supply and drive up rents. Investors in SFRs in Chandler and other restrictive areas may benefit from constrained competition, but long-term affordability will require major zoning reform.