Phoenix Submarkets with Prolific Apartment Construction
Phoenix has dominated the national leader board for apartment construction activity in recent years as deliveries hit a record high in calendar 2022. That growth pattern continues, as Phoenix is the No. 2 market in the nation for units under construction, bested only by Dallas, as of 4th quarter 2022. In the past 10 years, over 75,000 new units have completed in Phoenix, increasing the existing base by 23.8%, according to data from RealPage Market Analytics. With 46,800 units underway at the end of 2022, inventory will increase by another 12% in the near term. From a submarket level, the western Avondale/Goodyear/West Glendale submarket is seeing the most construction. The apartment count there jumped by nearly 62% in the past decade and the submarket has another 12,200 units under way, which is scheduled to grow inventory by another 59.4%. The geographically large Pinal County submarket is also seeing some growth after no development in the past ten years. Now, with over 2,000 apartments under way, this submarket is expected to grow over 53% in the near term. Two other submarkets – Central Phoenix and Gilbert – are set to see increases between 22% and 28%, after roughly doubling inventory over the past decade. North Tempe/University and East Mesa will both grow by about 18%, after deliveries grew inventory by 26% to 47% in the past decade in those areas, respectively.