Phoenix apartment construction rises despite national downward trend

Despite nationwide apartment construction slowing in 2018 after a six-year upward trend, both construction and rent prices in Phoenix continue to climb.

According to a RentCafe report, developers in the Phoenix area plan to build more than 10,300 new apartment units this year, 55 percent more than last year. Phoenix ranks sixth in the top 20 U.S. metros for projected apartment deliveries during 2018, according to the report.

Nationally, approximately 283,000 new apartments are to be completed this year, which is 11 percent less than last year, RentCafe reported.

Florentina Sarac, author of the study, said apartment deliveries are following a downward trend, so renters find themselves in unfavorable situations because rents are expected to keep rising.

Metro Phoenix added 88,000 new residents to its population between 2016 and 2017, which only adds to the pool of potential renters.

Developers in the city of Phoenix alone is planning to add 4,152 new units by the end of the year, compared with 2,316 last year. These construction volumes will consist of 1,915 new apartments in Tempe, 1,075 in Chandler and 1,030 in Scottsdale, according to RentCafe.

Peoria, Gilbert, Glendale and Mesa all are expected to add around 400 to 500 new apartments each by the end of this year, the study noted.

RentCafe is a nationwide apartment search website that allows renters to find apartments and houses across the country.

In its report, the agency analyzed new apartment construction data across 136 U.S. metropolitan statistical areas. The study is based on apartment data with buildings containing 50 or more units, according to RentCafe. Data was also provided by its partner company, Yardi Matrix, a commercial real estate research and data platform.

By Adrian Marsh