Arizona HOA high-rise living: What boards should know about trends, infastructure, and more

The growing popularity of high-rise living in Arizona

High-rise living is no longer a niche in Arizona. It is becoming a defining part of the state’s housing future, and with it comes a new level of complexity for HOA boards.

From Midtown and Downtown Phoenix to the Biltmore corridor, vertical and mixed-use development is accelerating as land becomes scarcer and demand grows for walkable, transit-connected communities. The City of Phoenix projects continued urban density growth over the next decade, reinforcing a clear shift toward vertical living. 

For HOA boards, this is more than a development trend. It is a structural shift in responsibility.

Today’s high-rise boards are overseeing multimillion-dollar assets with increasingly complex infrastructure, tighter financial margins, and heightened homeowner expectations. At the same time, they remain volunteer-led and are making decisions that carry real financial, legal, and safety implications.

To better understand what this moment demands, we spoke with Holly McNulty, vice president of Arizona urban high-rise at FirstService Residential.
 

Why now feels different

"High-rise boards have always had a lot on their plates. What feels different right now is the level of urgency and visibility."

Holly McNulty, vice president of Arizona urban high-rise at FirstService Residential

Many of Arizona’s high-rise buildings are entering a critical phase of their lifecycle. Core systems such as mechanical, structural, and life safety components require more proactive oversight instead of reactive fixes. At the same time, new towers are coming online, raising the standard for resident experience and operational professionalism.

Add rising insurance premiums, escalating construction costs, and ongoing labor constraints, and the margin for error becomes smaller.

Holly notes,

"There is much greater awareness around building safety and long-term planning. Even when something is not legally required in Arizona, boards understand it is still the responsible thing to do."

That mindset shift has led many boards to plan ahead rather than react when something breaks.
 

Special assessments are a lagging indicator, not the problem

Few issues create more friction in high-rise communities than special assessments. However, focusing on the assessment itself often misses the bigger picture.

Holly says,

"Special assessments are usually a symptom, not the root issue. They reflect decisions, or delays, that happened years earlier."

Arizona does not mandate reserve studies, but in high-rise environments they are essential. Without a clear understanding of long-term capital needs, boards risk underfunding reserves, deferring maintenance, and compressing large expenses into short timeframes.

She adds,

"When reserves are underfunded, boards lose options. That is when decisions feel urgent, and costs feel sudden to residents."

Well-funded reserves do more than reduce the likelihood of special assessments. They give boards flexibility, predictability, and credibility with homeowners.
 

Transparency is no longer optional, it is operational

Legislative updates, including Arizona’s Senate Bill 1039, have reinforced what many residents already expect: open governance, accessible records, and clear financial visibility.

Beyond compliance, transparency is becoming a defining characteristic of well-run communities.

Holly notes:

"Residents want to understand not just what decisions are made, but why. If boards do not communicate proactively, residents will fill in the gaps themselves."

High-performing boards are responding by:

• Improving the clarity and frequency of financial reporting
   
• Documenting decisions more thoroughly
   
• Creating more consistent communication rhythms

This is not just about trust. It is also about risk management. Clear documentation and communication help protect the association and the board members themselves.
 

Why high-rise expertise is no longer interchangeable

One of the clearest trends Holly sees is boards moving away from generalist management models.

She explains,

"Managing a high-rise is fundamentally different. You are dealing with vertical infrastructure, continuous operations, and significantly higher resident expectations."

Boards are increasingly prioritizing:

• Structured preventive maintenance programs
   
• Depth of staffing and operational redundancy
   
• Consistency in resident communication
   
• Accuracy and usability of financial reporting

Holly adds:

"High-rise buildings never pause. Boards need to know there is depth behind the on-site team. Service continuity is critical."

The financial piece boards cannot ignore

As high-rise communities grow more complex, so do their financial needs.

Holly says:

"Many board members are not accountants, yet they are responsible for reviewing detailed financial statements and making long-term decisions."

This is where specialized financial support plays a critical role. FirstService Financial, Inc. (FFI), which partners exclusively with FirstService Residential clients, works alongside boards to provide a full range of cash management, treasury and investment solutions tailored to high-rise HOAs.

She adds,

"Financial clarity builds confidence. When boards understand their numbers, they make better decisions and communicate more effectively with residents."

That education is especially important as Arizona’s urban housing market continues to expand. Phoenix remains one of the most active multi-family markets in the country, driven by population growth, job expansion, and sustained demand for urban living.
 

The questions forward-thinking boards are asking

According to Holly, the most effective boards are shifting from tactical to strategic questions:

• How are we forecasting major capital expenses over the next 5 to 10 years?
   
• What systems are in place to track and verify preventive maintenance over time?
   
• How resilient is our staffing model if key personnel change?
   
• How are financial insights being translated into decisions the board can confidently make?

She explains,

"These questions get to the depth behind the operation. It is not just about what is happening today. It is about how the community is being supported long term."

Why this matters for Arizona’s evolving skyline

Arizona’s natural push toward higher-density, urban living is not slowing down. As more residents move into vertical communities, HOA boards will play an increasingly important role in maintaining not just individual buildings, but the broader perception of urban living across the region.

Holly notes,

"Governance, maintenance, and financial planning all directly impact property values and resident experience. Well-run buildings set the standard for everything that follows."

What high-rise boards should focus on next

• Treat preventive maintenance as a long-term asset strategy, not a line item
   
• Use reserve studies to drive decision-making, regardless of legal requirements
   
• Elevate financial literacy at the board level
   
• Prioritize transparency as a core operating principle
   
• Partner with teams that bring true high-rise depth and continuity

Final thought

High-rise communities offer a compelling vision for Arizona’s future. They are vibrant, connected, and amenity-rich. At the same time, they demand a higher standard of governance.

Boards that embrace proactive planning, financial clarity, and operational discipline will be best positioned to protect their communities and the residents who call them home.
 

Want to learn more?

If your high-rise board is evaluating its long-term strategy or looking to strengthen operations, financial planning, or communication, connect with our team to explore resources designed specifically for high-rise communities.

Contact us today to learn more.