As more cranes begin to light up the Valley’s skies at night, it’s clear that metro Phoenix is among the hottest areas of the country for apartment construction activity.
Article originally posted here.
A new study released by RealPage Inc. found that Phoenix ranks seventh nationwide for total units under construction, with 22,055 apartment units under construction as of the third quarter.
Projects totaling 7,500 units have begun the permitting process and another 38,000 units are planned in projects that have not yet begun the permitting process, according to the RealPage report.
These apartment unit counts are for professionally managed, market-rate apartments and do not include all multifamily product, according to the report.
A rapidly growing population, robust talent pipeline, a low cost of living and a business-friendly regulatory environment are contributing to demand in metro Phoenix, said Jessica Morin, director of market analytics for CoStar Group Inc. in Phoenix.
An average of 200 people are moving to metro Phoenix on a daily basis, she said, driven by the affordability factor.
Median rents in Phoenix are $945 for a one-bedroom apartment and $1,154 for a two-bedroom apartment, according to Apartment List’s latest report.
Here’s a look at the top 10 metro markets across the country with the most apartment units under construction:
- Dallas/Fort Worth: 40,058
- Washington-Arlington-Alexandria, DC-VA-MD-WV: 30,986
- Los Angeles-Long Beach-Glendale, CA: 30,265
- Newark-Jersey City, NJ-PA: 27,215
- Houston-The Woodlands-Sugar Land, TX: 24,790
- New York-White Plains, NY: 22,125
- Phoenix-Mesa-Scottsdale, AZ: 22,055
- Seattle-Bellevue-Everett, WA: 20,642
- Austin-Round Rock, TX: 17,705
- Atlanta-Sandy Springs-Roswell, GA: 16,653.