Phoenix Apartment Pipeline Heats Up as Demand Outpaces Supply

Article originally posted on Phoenix Business Journal on September 9, 2019

Even with nearly 14,000 apartment units under construction in metro Phoenix, builders still can’t keep up with demand.

According to research conducted by Kasten Long Commercial Group exclusively for the Phoenix Business Journal, metro Phoenix has 13,631 units within 54 projects under construction. Of those, 23 totaling 5,054 unites are within the city of Phoenix.

Jim Kasten, founder of Kasten Long Commercial Group, is forecasting 47 projects totaling 10,811 units completed during 2019, an increase of 32% from 2018.

Fueling that demand is the Valley’s job and population growth, he said.

“With the overall population boom, the number of good-paying jobs and corporate expansions or relocations into the Valley, absorbing the new units will be easy,” Kasten said.

Housing demand nationwide far exceeds supply, said Doug Ressler, manager of business intelligence at Santa Barbara, California-based Yardi Matrix.

“We see that in all 130 markets nationwide we deal with,” he said. “Phoenix obviously needs more. The growing population for renters far exceeds the current capabilities right now.”

A low market supply of single-family homes and a demographic shift toward more people seeking a “lock-and-leave” lifestyle is causing more demand for apartment rentals, Ressler said.

“We see Phoenix as being one of the most robust markets,” Ressler said. “We see that continuing for a number of months. It is a very strong market right now.”

Even with all the apartments under construction, Phoenix isn’t the top producer of new units, according to a RentCafe study based on Yardi Matrix data.

Find the Complete Article Here: https://www.bizjournals.com/phoenix/news/2019/09/09/phoenix-apartment-pipeline-heats-up-as-demand.html?iana=hpmvp_phx_news_headline

Metro Phoenix has 58,278 units in the pipeline, including 14,631 under construction, according to Kasten Long Commercial Group.

Metro Phoenix has 58,278 units in the pipeline, including 14,631 under construction, according to Kasten Long Commercial Group.

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