Source: Elliott D. Pollack & Company, The Monday Morning Quarterback, October 5, 2026.

ARIZONA (Oct. 6, 2026) — Arizona’s economy gained momentum in the second quarter, but slowing national hiring, persistent inflation and higher mortgage rates are creating a more difficult environment for consumers, businesses and real estate investors, according to Elliott D. Pollack & Company’s October 5 Monday Morning Quarterback report.

Arizona’s real gross domestic product grew at a 2.5% annual rate in the second quarter, up from 0.8% in the first quarter and exceeding the nation’s 2.2% growth rate. The improvement signals stronger economic activity after a sluggish start to the year, although borrowing costs and household expenses continue to constrain the outlook.

Nationally, employers added just 29,000 jobs in September, falling short of expectations for approximately 90,000. Unemployment increased to 4.2% from 4.1% in August, while downward revisions removed a combined 60,000 jobs from the July and August totals. July now shows a loss of 10,000 jobs.

Health care, construction and manufacturing accounted for much of September’s hiring, adding 17,000, 11,000 and 9,000 jobs, respectively. Financial activities lost 7,000 jobs. Average hourly earnings increased only 0.1% during the month and 3.0% over the year.

Despite weaker hiring, the report describes a labor market that is slowing rather than collapsing. Initial unemployment claims fell to 197,000 for the week ending September 26, and layoffs remained at 1.6 million in August. Job openings declined to 7.1 million from 7.3 million in July, suggesting employers are becoming more cautious about expanding their workforces.

Inflation presents the other side of the Federal Reserve’s challenge. The Personal Consumption Expenditures price index, the Fed’s preferred inflation measure, increased 3.4% over the year in August, compared with 2.7% a year earlier. Core PCE inflation, which excludes food and energy, was 3.0%.

Manufacturers also reported mounting cost pressure. The Institute for Supply Management’s manufacturing prices index climbed to 77.9 in September from 71.1 in August. A reading above 50 indicates that more purchasing managers reported rising prices than falling prices.

According to Pollack’s report, the Fed raised its benchmark interest rate in September to a target range of 3.75% to 4.00%, responding to renewed inflation pressure. The weak jobs report now complicates the case for additional increases.

Pollack’s assessment is that policymakers will likely need more evidence of sustained labor market weakness before changing direction. Another disappointing employment report, however, would make further tightening harder to justify.

For Arizona real estate, higher mortgage rates remain a significant obstacle. The average 30-year fixed mortgage rate reached 7.28% last week, up from 7.03% a week earlier and 6.71% at the beginning of September, according to figures cited in the report.

Greater Phoenix home prices were nearly unchanged in July, increasing just 0.05% from a year earlier, according to the S&P Cotality Case-Shiller index. That compares with a 2.5% increase for the index’s 20-city composite.

National home prices rose 1.9% year over year in July, although prices adjusted for inflation have declined for 14 consecutive months. The combination of modest price growth and higher financing costs continues to challenge affordability.

Construction activity showed some monthly improvement. U.S. construction spending increased 0.9% in August to a seasonally adjusted annual rate of $2.20 trillion, but remained 1.7% below its year-earlier level. Residential construction spending rose 1.1% during the month.

Consumers are feeling the pressure. The Conference Board’s consumer confidence index fell to 81.9 in September from 88.6 in August, its lowest level since 2014. Its expectations index declined for a third consecutive month to 63.6.

Household spending nevertheless continued to rise. Personal income increased 0.2% in August, while spending advanced 0.9%, or 0.6% after inflation. With spending growing faster than income, the personal saving rate stood at 4.1%.

Arizona households also face elevated fuel costs. The statewide average price for regular gasoline was $4.77 per gallon on October 1, approximately $1.22 above a year earlier and higher than the national average of $4.41, according to AAA figures cited by Pollack.

Regional employment indicators offered some encouragement. ADP reported that private employers in the Mountain region, which includes Arizona, added 18,000 jobs in September. Arizona’s initial unemployment claims declined by 147 to 2,196 for the week ending September 26.

Pollack does not see the latest figures as pointing to an immediate recession. Revised GDP growth, continued manufacturing expansion and relatively low layoffs suggest the economy is still moving forward. For Arizona’s real estate market, however, stronger state economic growth is arriving alongside financing and affordability pressures that could temper demand.

TUCSON, Ariz. (Oct. 6, 2026) – Tech Parks Arizona has been recognized as one of the nation’s leading innovation districts in a new national report from the George W. Bush Institute-SMU Economic Growth Initiative. The analysis highlights the nation’s strongest innovation districts as powerful economic engines where higher education institutions and leading-edge companies cluster to spur innovative collaborations that significantly contribute to community prosperity and regional growth.

The report, Advancing in the Face of Headwinds: How America’s Innovation Districts are Promoting Prosperity and Opportunity, examined 42 innovation districts and research parks across the United States and identified standout districts in two categories: prosperity metrics and housing and neighborhood stability. Tech Parks Arizona was one of only six innovation districts nationwide recognized for strong performance in housing and neighborhood stability, alongside Research Triangle Park, Pegasus Park, Cleveland Health-Tech Corridor, St. Pete Innovation District, and Winston-Salem Innovation Quarter.

Researchers found that neighborhoods surrounding innovation districts continue to outperform their broader regions in population growth, educational attainment, income growth, and housing development. The study also found that innovation districts across the country experience increased demand for housing and quality-of-life amenities as they grow.

In a press release announcing the findings of the report, author Dr. J.H. Cullum Clark, Fellow at the George W. Bush Institute-SMU Economic Growth Initiative, shared “Almost half the district leaders in our survey say that housing availability and price are constraining the growth and success of their innovation districts.”

Tech Parks Arizona’s recognition in the housing and neighborhood stability category underscores the region’s ability to support innovation-driven growth while maintaining strong community outcomes.

Innovation districts have been one of the nation’s most effective economic development strategies, generating large concentrations of knowledge-based jobs nearby and delivering higher incomes than comparable places elsewhere.

“As innovation districts continue to drive economic growth across the nation, Southern Arizona is uniquely positioned to compete and grow,” said Carol Stewart, CEO & President of Tech Parks Arizona. “This recognition affirms that our region has the talent, partnerships, and infrastructure needed for businesses to scale while creating opportunities that benefit both industry and the broader community.”

As a major employment hub, Tech Parks Arizona creates pathways from education to employment by connecting University of Arizona students and graduates with internships and high-quality jobs, helping keep skilled talent in the region and strengthening brain remain. Tech Parks Arizona hosts approximately 100 companies, ranging from startups to tech giants. As a major employment hub, the parks are home to 9,205 knowledge workers whose average annual wage of $75,600 exceeds that of the Tucson metro area. With an annual economic impact of $2.6 billion, it plays a vital role in building a future-focused economy by attracting new businesses, supporting the growth of businesses, launching new companies, and creating high-paying jobs.

By Keith Pomonis 

PHOENIX (Oct. 6, 2026) — When people think of Metro Phoenix, they usually picture a sprawling desert valley that goes on forever. But if you look toward downtown, you’ll find a unique architectural skyline shaped by a surprising rule.

Even though Phoenix is the fifth-largest city in the U.S., it technically doesn’t have a single official “skyscraper.” According to the Council on Tall Buildings, a skyscraper must stand at least 492 feet tall. Because Phoenix Sky Harbor International Airport sits right next to the urban core, strict FAA height restrictions have kept the skyline beautifully capped.

Despite these limits, the Valley has some incredible high-rises. Here are the top five tall buildings defining the Phoenix skyline, along with the history and quirks that make them special.

1. Chase Tower: Oh, so close (483 feet)

Since 1972, Chase Tower has held the title of the tallest building in Arizona. Originally built as the Valley Bank Center, its distinct cloverleaf shape occupies an entire city block.

• The History: It was built during a major 1970s downtown corporate boom. For decades, locals and tourists could ride up to the 39th floor to view the entire Valley from its public observation deck.
• Fun Fact: The tower sits on a massive underground pedestrian concourse that once bustled with shops. While the building has been entirely vacant since 2021, plans are currently underway to breathe new life into the giant by converting it into a mix of apartments and hotel rooms.

2. The Maeve Central Station: The new kid on the block (424 feet)

The newest addition to the upper limits of the skyline is The Maeve Central Station, which officially wrapped up construction in 2025.

• The History: This 33-story tower completely reshaped the former transit hub at Central Avenue and Polk Street.
• Fun Fact: It represents a massive cultural shift in Phoenix. For decades, the city grew outward; this tower proves the city is now aggressively growing upward, packing a vibrant mix of residential apartments and retail spaces right into the urban core.

3. U.S. Bank Center: The trailblazer (407 feet)

Completed in 1976, the 31-story U.S. Bank Center stands as a testament to late-70s corporate ambition.

• The History: It was built during a time when high-rise safety laws were still evolving across the country.
• Fun Fact: It secured a permanent spot in local history by becoming the very first high-rise building in Arizona to feature an automatic fire sprinkler system.

4. CenturyLink Tower: The neon crown (397 feet)

Finished in 1989 and known natively to many locals as the Qwest Tower, this Midtown landmark brings a bit of artistic flair to the desert.

• The History: Built right at the tail end of the 80s boom, it was designed to anchor the commercial stretch of Central Avenue north of downtown.
• Fun Fact: It is easily the most recognizable building at night. Its roof features a decorative, pyramid-shaped crown lit with turquoise neon that illuminates the desert sky.

5. Alliance Bank Tower: The modern landmark (385 feet)

Part of the bustling, modern CityScape development, the Alliance Bank Tower was completed in 2010.

• The History: It was built to revitalize downtown Phoenix, successfully bringing street-level energy, dining, and nightlife back to the city center.
• Fun Fact: Wrapped in sleek blue glass, its highly reflective exterior mirrors the intense Arizona sun, making it look completely different depending on the hour of the day.

While these five hold the records today, Phoenix’s horizontal legacy is about to meet a massive vertical shift. Developers have broken ground on the upcoming Arro project, a stunning mixed-use development. Its north tower is slated to reach 541 feet. Once it is finished, it will officially break the FAA glass ceiling and become Phoenix’s very first true skyscraper.

Keith Pomonis is the President of Mesa-based EHS Restoration. For more information call (480) 306-5777 or visit ehsrestoration.com.