An aging population, international immigration and fewer home purchases are resulting in an increased need for new apartments. The Phoenix metro area is expected to need 150,302 new apartments by 2030 to keep up with local demand, according to a new study commissioned by the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA). The study found that, nationally, 4.6 million new apartments are needed by 2030. This growth would increase economic activity in Phoenix and across the country.
It’s important to note that locally:
- An average of 3,280 investment-grade units were built annually between 2011 and 2016, according to data from Axiometrics. Phoenix will need to average 10,736 units (5+) per year in the coming years to meet the expected demand.
- The Phoenix metro area will need all types of apartments and at all price points.
- Phoenix will need to increase its existing number of apartments by 38 percent by 2030, and ranks #6 out of 50 metro areas in terms of the percent increase in demand for new apartments by 2030.
- Hoyt estimates that there are currently 406,008 apartments in the Phoenix metro area, with residents that span the age and income spectrum.
- Phoenix apartment developers, owners and managers and their residents contribute $9.9 billion to the local economy annually.