(Developers can’t keep up with housing demand in metro Phoenix. Pictured is a rendering of Scottsdale-based Greenlight Communities’ 250-unit apartment community expected to break ground this month in Mesa./ Photo provided by GREENLIGHT COMMUNITIES)
By Angela Gonzales | Phoenix Business Journal
With 137 apartment projects under construction and another 99 planned in metro Phoenix, some are beginning to wonder if the market is in danger of being overbuilt.
Not yet, analysts say.
“At this point, with the shortage of housing, the continued strong net migration and the very low vacancy, the short-term answer is no,” said Jim Kasten, associate broker for Commercial West USA in Scottsdale. “Having said that, with more than 12,000 units forecast to be completed in the last half of this year, we expect an increase in vacancy rates and probably some pressure on rental rates for the higher-end apartments.”
During the first half of this year, there were 5,094 units totaling 26 projects completed and 12,469 units totaling 61 projects forecast for completion in the next six months, according to Commercial West USA’s second quarter market update.
