Four Areas Lead the Way in Phoenix Region’s Apartment Building Boom
Brand-new data on the Valley’s apartment building boom indicates supply might be overtaking demand, due to 3,500 new units under construction being added to the 16,500 units that came on the market in 2022. This is happening as demand is slowing, probably because of inflation and jitters about the economy. Vacancies were the lowest in a decade in Q3 of 2021 at 5.3 percent but now stand at 9.3 percent, and annual rent growth is negative in most areas of the Valley. The regions with the highest number of new units are downtown Phoenix (5,600 units), Tempe (4,400 units), Chandler/Gilbert (7,800 units) and the West Valley (over 6,600 units), the latter of which has seen a surge in single-family rentals, with more than 3,600 added since 2019 and 1,300 on the way.