By Anda Rosu | Multi-Housing News
Multifamily demand continued to stay elevated in 2023 despite major economic headwinds, although overall the sector was underperforming compared to 2022 during the first six months of the year. According to Yardi Matrix data, 154,366 units came online nationwide between January and June 2023. The volume of multifamily deliveries accounts for a 60 basis points increase from the 153,314 units that were delivered last year during the same period.
In the ranking below, we showcase the top ten markets for deliveries in the first half of 2023 by the number of units, based on Yardi Matrix data. Combined, a little over 53,500 units came online in these metros, accounting for roughly 35 percent of the national volume.
1. Phoenix
Bolstered by strong in-migration from more expensive metros, Phoenix keeps delivering new multifamily housing, now being number one on our list. Developers managed to bring online 8,062 units in 36 properties in the first six months of the 2023, accounting for 2.8 percent of total stock. In the first six months of 2022, only 6,398 units came online, making Phoenix the only metro to have more deliveries in the first half of 2023 than in the first half of 2022. Roughly 97 percent of new deliveries belong in the Lifestyle sector, with the rest of 3% bein RBN.
Another 42,678 units were under construction in Phoenix in June, out of which 10,886 broke ground this year. In the first six months of 2022, developers started working on only 8,606 units.
Tempe–North with 1,031 units in multifamily deliveries, Phoenix–Midtown with 1,020 units and Glendale–South, with 987 delivered units led the way in volume of deliveries in the first half of 2023. The second phase of Camden Tempe represents the largest property delivered in the first six months of 2023. The 397-unit property is owned by Camden Property Trust and is located in Tempe–North.
