Is Phoenix apartment market a candidate for overbuilding?

|

AZRE (September 12, 2017) – The Phoenix apartment market has notched a strong two years, as occupancy has remained essentially full and rent growth levels have trended well above national norms.

A key factor shaping this performance is that deliveries to date in this cycle haven’t been over the top. But this is a spot where the building pace can escalate rapidly, and there has been a run-up of activity lately.

A total of 13,356 units were under construction at the end of 2nd quarter 2017, the fourth straight quarter in which construction volumes topped the 13,000-unit mark. Those levels are in line with the ongoing construction highs seen in the previous cycle’s peak in 2007 and 2008.

Read more here.