Metro Phoenix will continue to be a robust market for apartment communities
By Peter Madrid
Excellent demographics. Some of the best job growth in the country. Steady, stable increases in population. Affordability.
With a brisk tailwind behind it, Metro Phoenix in 2019 will continue to be one of the most robust markets nationally for multifamily communities.
According to Fannie Mae's Multifamily Economics and Market Research, the Valley’s economy is moving beyond its reliance on single-family construction. It is now ideal for the relocation of financial and professional services. This surge, Fannie Mae reports, is also boosting jobs in the retail, hospitality, construction, and healthcare sectors.
All of this bodes well for the Valley, which has more than 15,737 multifamily units under construction.
“With more job diversification and growth in healthcare, financial, and tech sectors, we are less prone to the significant peaks and troughs economically speaking in years past,” says John Carlson, 2019 AMA Board Chair and President of Mark-Taylor Residential. “We simply have a better economic footing than in cycles of the past.
“Of course, we still face some issues, including affordable land, labor shortages, and increased construction costs. The tailwinds moving forward will continue to be demographics, a strong business climate, and job growth,” he says.
Just look across the Valley and chances are you will see a multifamily construction site. What’s in the pipeline:
By the numbers
$13.1 billion: Since 2000, the amount spent on multifamily projects in Phoenix. According to a report from Apartment List, the Valley ranked 10th highest among all major U.S. metros during the period from 2000 to 2016.
7,500: The number of multifamily units that come online in Metro Phoenix in 2018, according to Yardi Matrix. It represents a 15 percent increase from 2017.
91%: Between 2005 and 2016, this percentage of all newly formed households were renters.
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