Phoenix Among U.S. Leaders For 2020 Apartment Construction
Phoenix was one of the top markets in the U.S. for apartment construction in 2020 as developers attempt to meet residential demand in the fast-growing region.
The city ranked second nationally with 17,215 apartments construction starts, according to RealPage Inc., a Richardson, Texas-based real estate software firm.
Dallas landed in the top spot, and Phoenix, Washington, D.C., Newark, N.J., and Austin, Texas, rounded out the top five.
New construction is an important driver of the local economy, generating both temporary and permanent jobs, as well as bringing homes into the market to support a growing population and commercial space to support area businesses.
Here’s more from RealPage:
While some industry observers theorize that construction could cool in the urban core and rise in the suburbs, the actual start figures so far don’t back up that theory. That could change in 2021, but the recent rollout of Covid-19 vaccines makes it unlikely to. While 2020 urban core apartment demand proved weaker than it was previously across the country, some product absorption continued in most cities. Manhattan, downtown San Francisco and select neighborhoods in Los Angeles are really the only spots that registered sizable drops in the number of apartment renter households.
The December 2020 rent index from Apartment List indicates Phoenix-Mesa-Chandler rents have gone up 0.6% over the past month, and are up by 4.5% in comparison to the same time last year. Currently, median rents in in the metro stand at $1,053 for a one-bedroom apartment and $1,258 for a two-bedroom. This is the sixth straight month that the metro has seen rent increase after a decrease from April through June. The metro’s year-over-year rent growth lags the state average of 4.7% but far surpasses the national average of -1.5%. The metro’s median two-bedroom rent of $1,258 is above the national average of $1,090.