I started working for P.B. Bell, one of Phoenix’s most well-known multifamily developers, 10 years ago. Since that time, the multifamily real estate market has undergone significant change.

The Phoenix Metro Area has always been an attractive market, but interest has surged in recent years due to the diversification of the local economy and the unanticipated impact of the COVID-19 pandemic.

The Evolution of the Landscape in Phoenix

Following the Great Recession, Phoenix made a concerted effort to broaden its economy to become less reliant on construction, government and tourism. Those efforts paid off with significant growth in the semiconductor, technology, healthcare, finance, and manufacturing sectors, bringing large numbers of high-paying jobs to the Valley and paving the way for continued growth in the metro area. From 2013 through 2019, Phoenix led the country in metro-to-metro population growth, fueled by affordability and the diversification of our local economy.

This growth sparked a greater need for homes across all real estate markets, with multifamily demand estimated between 10,000 and 12,500 new units annually. However, multifamily developers struggled to keep up with demand. Prior to COVID-19, the Phoenix area averaged around 9,000 multifamily units delivered annually.

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