Once Upon A Time...

The story of Chandler sounds oddly similar to so many of the other Phoenix Metropolitan cities. It starts like this, “Not very long ago in a farm town that seemed so much further away at the time….local natives harvested their cotton and horse lovers cleaned their stables, unaware of the changes that would alter life as they knew it. Like a crack of thunder in a cloudy sky, housing subdivisions began to lightly sprinkle throughout the seemingly endless acres of flat, treeless, plowed fields. It started haphazardly, but non-threateningly between freshly harvested fields and dairy farms full of happy Chandler cows mooing at the occasional passing automobile. Those who dared venture north, came back with stories of giant entities forming called “master planned communities” and they were reportedly creeping in from areas of southwest Tempe, southwest Mesa and even from the western mountains with crazy names like Ahwautukee and The Foothills. Although no one had seen the Warners or Dobsons for years, their names now lived on in the new communities of Warner Ranch and Dobson Ranch. Familiar streets to the native villagers, such street names like Chandler Blvd, Pecos Rd., Arizona Ave. and McQueen Rd. were becoming known to the “city folk out yonder”

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The 90s and Beyond...

Then, sometime in the first years of the 90s and continuing on today, IT happened.  Some say, they never saw IT happen…others blamed IT on “those darn hippies”…but IT came and IT came quickly….a great wave of tiled roof homes penetrated the last strong crop defenses and made their way deep into central, west and east Chandler. The fight was over, the farmers threw down their hoes and begrudgingly accepted their defeat as they built their multi-million dollar homes on the acre lots they retained in negotiations….grandiose and with the strong smell of new money, large estate homes were habitually built on the edge of the new home developments for all to see and admire. The die-hard farmers took their meager earnings (oh…and the multi-millions from the land sales) and moved to the further fringes where no one would come to bother them again. The sea of tiled roof neighborhoods continued to stretch out and mix in; becoming indistinguishable from the Gilbert sea of tile roof homes. Today, the remaining farms are open for entertaining and educating the surrounding families and/or waiting for the really, really, really BIG payout.

Exaggerated? Maybe a little…but the speed of transformation of Chandler into a “bedroom community”, as well as a significant hub for employment (with Motorola and Intel in the forefront) earned the town the fastest growing city in its size category several years running. Growth is not unknown to the Valley of the Sun, but the rate of growth is always new, as we manage to outpace seemingly nonsustainable growth figures year after year. Like a set of dominos (laid correctly, that is), each growth story leads to another even more eye-opening. Predictably, Gilbert and east Mesa followed Chandler in its population explosion. Predictable, but still surprising, the affordable housing in the early part of this decade was forced out to Apache Junction as the earlier growth cities continued to improve on the vacant infills at premium prices. This pattern, becoming more and more of a sure thing and overly predictable, has begun to seduce a larger number of developers and investors (seasoned and amateurs, alike) with ever deeper pockets and arriving from more and more diverse locations. The latest series of jockeying for the best return occurred in, what was the rural area of Maricopa, known for cheap horse land four years ago and is now fully established as one of the newest bedroom communities of the Valley; and Casa Grande, which survived independently in the past as its own economy, is slowly being roped into the “already-crowded-family” of Phoenix suburbs---each jockeying for position to be  the “greatest place to live on earth”,  or “the highest per capita income in the Valley”; or “The world’s Largest Cul-de-Sac”(maybe that one wasn’t sought out). Other new names, in what could arguably be considered additional east valley suburbs, are Eloy and Florence. Silent land purchasing battles have been underway for years. In fact the true land acquisition professionals have already moved on to new opportunities while the “greenies” fight for the leftover scraps of land.

There's Something About Chandler...

Stealing an outdated Phoenix tourism slogan developed during the days of Rose Mofford, in 25 years, Chandler has gone “From Cow Town to Wow Town”. Unlike the farm days, in which all outside perceptions of Chandler were pretty consistent and included: 1) a great place to take a field trip to a farm; 2) a stinky little cow town; 3) long stretches of endless roads that never seem to end and often where the bodies of missing persons could be found.

Today, the name “Chandler” brings forth so many different perceptions to different people…only emphasizing the growing diversity and maturity of the city. Common perceptions are:

1. Home of the ever popular Kyrene School District
2. The perception of a “bedroom community” has long ago been offset by an image of having a strong employer base and being a serious contender in the fight against other Valley cities for employer relocations. Chandler is favored by Intel, with an employee base of approximately 10,000.
3. The home of the Ostrich Festival. I personally have never met anyoe who attends this long-time Chandler tradition of Ostrich races, but it is well known and gains more popularity each year.
4. The home of The Chandler Fashion Show Mall and a good shopping and dining destination.
5. A great place to live a wonderful quality of life in modern and affordable homes
6. Easy Access with 4 major Valley freeways
7. Popular city of choice for the young urban professional newly or only several years out of college

            Public perception can be altered over time and Chandler is an excellent example of this as an image of a strong agricultural town altered within a decade into one with high emphasis on chip and high-tech production. Chandler is meeting its goal as a viable player in the Valley with an emphasis on quality...starting from the schools and moving up. Much of the public’s perception of Chandler is a direct result of what area of Chandler the respondent is most familiar. Chandler can be divided into 5 distinct zones: West Chandler, The Dobson Ranch Area; The Ocotillo Area; and the Chandler/Gilbert Newer Home Region.

West Chandler

By far the area of Chandler that carries its image of quality schools (in fact, Kyrene Schools are only located in this area of Chandler); the higher quality shops and dining is also located here; not surprisingly, this is also the area of Chandler with the highest per capita income. West Chandler generally falls neatly into Area 504; its boundaries are I-10 to the west, roughly Ray to the north (actually goes as far north as ½ miles in most areas); east to Hwy 101 (Price Freeway); and south to Pecos Rd. West Chandler is isolated from the rest of Chandler by jutting out west. The unusual “handle-like” shape of West Chandler is due to the Queen Creek Indian Reservation to the south; Ahwautukee/Foothills to the west (separated by the I-10 and also part of the Kyrene School District); South Tempe to the north (also part of Kyrene School District).

Types of Home Inventory

Homes in West Chandler are smaller and older in the far southern fringes, which would have been built by the tract home builders of the day serving these early Chandler pioneers of the late 70s and early 80s. The area is best known for some of the highest priced tract homes in the east valley, south of the US60. The prices and home selections would be comparable to its sister regions of South Tempe and Ahwautukee/Foothills. Since the bulk of construction occurred in the mid 80s to late 90s, the majority of the houses have the “most popular features” of Valley Homes including: tile roofs, vaulted ceilings, rounded corners, etc. The quality of homes, like most areas of the valley, depends on the growth cycle of the area. When building just began and the area was considered a long drive and plenty of land was still available, smaller, more affordable homes would have been built on small lots to accommodate the first time home buyer. The end of the building cycle in this region occurred, for the most part, in the late 90s. These homes tend to be larger, single story homes on bigger lots (i.e., semi-custom “Estate” homes).

The loft/condo craze of Phoenix and Tempe was not completely forgotten here. The demographics of this region, with a high per capita GNP and large population of single working professionals are the perfect market for this type of housing product. Unfortunately, this skyscraper (the tallest and first of its kind in Chandler) got off to a “not so stellar” start. Construction halted in early 2005 and the unfinished steel structure now sits as an eyesore in the midst of Chandler’s greatest point of pride (the mall) with no definite dates for resumption or even whether the project will resume construction.

Things to Do

This is home to the Chandler Fashion Square which appears to have with a ton of shopping and dining still cropping up to fulfill a high demand.

 Opportunities for Appreciation

Significant home design features introduced to production builders in the later 80s have still not lost their functionality or appeal. Hence, you should expect a well cared for home in this area will sell significantly higher than a similar type of home in other areas of Chandler. The quality of inventory of homes; proximity to four major freeways;  more central location (further west); and its inclusion to the Kyrene school district all promote a healthy demand for homes and keep the prices at a premium. Be careful when/if the price disparity between West Chandler and other Chandler regions becomes more significant than normal. This could be an indication that the homes have hit a price ceiling and will need to let other home market areas catch up before prices continue to appreciate.

“The Dobson Ranch Area”

This name applies to that area of Chandler defined by the northern boundary, ½ mile north of Elliot Rd., west to Hwy 101 (Price Frwy), south to Pecos Rd. and east to Arizona Ave. This name is loosely used when discussing this area, since Dobson Ranch is the largest single entity dominating this region, covering approximately 3 square miles (north to US60, south to Guadalupe, west to Hwy 101 and east to Alma School Rd. For our purposes, “The Dobson Ranch Area” refers to surrounding neighborhoods in Mesa, heading north from Elliot, where Chandler leaves off, along Arizona Ave., and north to US 60.

Types of Home Inventory

All of these houses were built during the 70s and low to mid 80s and generally share many of the same architectural traits of the time; such as arched windows and entry ways, partially stuccoed, slump block, block walls around property line, 2 car garages, predominantly ranch style between 1200sf and 3000sf homes. The major difference with the Chandler homes is they are further south, but they hold their value (condition being equal) well against more centrally located Dobson Ranch because of the more popular “Chandler” address and the Chandler homes tend to be newer with a larger selection of homes with vaulted ceilings, more open and well lit floor plan designs that became popular in the mid to late 80s and even some tile roof subdivisions. The most recognized community in this area straddles Ray Rd. to the north and south and sits just west of Dobson Rd. and is called Anderson Springs. These homes, built in the late 80s, were ahead of their time and include the contemporary features still popular today in the master planned community design most sought after by Valley home buyers.

Things to Do

There’s no limit what you can do with a car and a 10 minute drive north, south, east or west on US60 or Hwy 101. In close driving proximity is a water/golf park, downtown Tempe and downtown Scottsdale, the Chandler Fashion Square. Two new malls were recently built roughly 1mile apart from each other and centered around the intersection of Hwys 101 and 202; both jockeying for more sales tax revenue with the last undeveloped land in the area. It will be interesting to see if demand can support such a significant jump in additional retail. This has always been considered pretty family oriented, so many businesses fill this niche close by including Chucky Cheese, Peter Piper Pizzas, bowling alleys, movie theatres, etc. Also, you’ll be hard-pressed to find any area in the valley that offers such a wide range of international restaurants. These gems are hidden in unpretentious and often overlooked strip mall locations throughout.

Opportunities for Appreciation

This whole area has solidly stood the test of time and seems to be resilient to real estate cyclical dips. Anderson Springs, due to its contemporary features, unique for this central location, will always retain a very significant premium price point relative to neighboring houses without tile roofs and other contemporary features. Providing these features retain their popularity, the structural nature of the homes, combined with the design of the community, and its central location will continue to make this neighborhood an excellent investment, significantly higher priced than the less contemporary neighborhoods directly north, east and south.  However, that’s not to undermine the investment opportunities in these “lesser” homes. They proved excellent investment properties for many. The vast inventory keeps competition healthy and prices reasonable; yet, due to its very central location, rental rates can be attractive for the “cash flow hungry” landlord. Traditionally a very safe bet with “solid-to-above-average” appreciation…and an excellent option for home buyers and investors.

The Ocotillo Area

This rivals West Chandler in its higher socio-economic demographics base. Started as a master planned community in the early to mid 90s, it centers on a series of lakes and a golf course. At its initial introduction, there was no “Ocotillo Area”; just a gathering of retirement communities with names like “Sunbird”, “Get-Off-My-Fake-Green-Grass Village”, and the “Active Adult” community of Sun Lakes that from most resident and outsider’s viewpoint might as well have been in Casa Grande. With no freeways, only narrow farm roads with no traffic lights, and no reason to drive to this area, residents enjoyed many years of quiet rest and relaxation away from the real world. Their only neighbors were a series of rural horse properties on acre lots scattered in groups further northeast, along Germann and Ocotillo…all the way out to Val Vista. Long viewed as an exclusive and progressive community out in the “boonies”,  Ocotillo magically gained its ranks as being considered “centrally located” when Hwy 101 (Price Frwy) made its last stop at its entryway. The San Tan Frwy (loop 202) added more appeal to the area when its pavement was laid just south of Pecos, an easy connection from Ocotillo using the Price access Rd. Investors in the early part of this decade saw great returns on building new homes in area 507, which quickly became known as the “closest” new build construction option and prices quickly followed the crunch for demand. The last 10-15 years have been spent trying to pave over all of the old farm land north of Ocotillo to Pecos Rd., and east and south to the borders of the Indian reservation at US101 and Hunt Highway; respectively. They’re doing a good job at it and, if analysts are correct will be finished with the “paving” of all of Chandler in about 10 more years. The last major developments to replace the old farmlands have been announced.

Types of Home Inventory

 Chandler, consistent with most new “bedroom communities”, grew quickly at first due to its affordable prices for brand new single family detached homes with all of the latest “bells and whistles”. As the cycle ran its course and demand continued to grow along with land, construction and developer’s profit margins, the affordable housing market dropped out. Luxury homes began to replace those affordable homes geared towards the first-time home buyer market. These popular tile roofed subdivisions and master planned communities sell at a premium to most of Chandler and rival only those that have been maintained condition and upgrades in the West Chandler area.

The past 6-7 years have seen the proliferation of the relatively recent concept of the cluster home developments (i.e., less than 4000sf lots, usually two or more stories, community pools) throughout new areas of Chandler; but the Ocotillo area was the first to see apartment style condominium projects begin to sell. . The first introduction of condominium and townhouse living options in Chandler reared their head in the form of an exclusive community in Ocotillo. Acceptance wasn’t immediate since 5 – 8 mile drives to equally priced starter homes still existed. But as this area became known for being central and entry level homes in Southeast Chandler gave way to luxury homes, these condos are beginning to make sense to those who see the value over commuting from Queen Creek This has since been followed by a series of condominium and townhouse projects.

A discussion of this area would not be complete without discussing the original dwellings in Area 507; namely the horse properties. Mostly outdated homes on acre-plus lots, these homes continue to appreciate at higher than average rates as the ever increasing population puts pressure on demand and the high price and dwindling supply of land limits the supply of these “oldies but goodies”. 

Things to Do

The original Ocotillo residents had to be extremely patient. It took close to 10 years to fill in the 3 miles of land between Chandler Blvd.  and Queen Creek Rd. (effectively, the northern border of Ocotillo). Only in the last 4 has there been any real attention on more than the basic supermarkets and gas stations. The Chandler Fashion Square is only a hop, skip and jump away. For the most part, if people are living here for proximity to recreation, they’re probably golfers; otherwise, West Chandler entertainment hubs near the I-10 are the closet options.

Opportunities for Appreciation

Still considered one of the more central east valley locations for contemporary tile roof homes; the finished neighborhood retail is the icing on the cake. Although the jumps in appreciation are not likely to come anymore, now that the area boasts two newer freeways, and no more planned anytime in the near future, the appreciation will come with maintaining the quality of the neighborhood and the image of Chandler to create demand for the address. So far, this is exactly what Chandler has been able to achieve. The name, arguably, adds demand and dollars to comparative homes across the border in Mesa and Gilbert.

The Chandler/Gilbert Area

The identities of both of these cities tend to get lost in the shuffle along the border of these towns where most of the inventory is newer; namely east to McQueen, west to the step-tiered border (only adding to the confusion), north to Chandler’s northern boundary at Elliot and south to the Indian Reservation at Hunt Highway. In these areas from north to south Chandler and Gilbert, to an uninformed eye, would almost seem to have been competing for which jurisdiction can fill in all of the empty farm land first. Chandler, having had a head start from being further west and, hence, first in the way of development and with a natural head start by having a northern border two miles short of Gilbert’s, is the sure winner. They have consistently been about 1-2 miles further south in development projects than across the border in Gilbert.