The correlation between the economy, employment and home ownership doesn’t pencil out the way it used to, and multifamily apartments is still dominating the housing market. In multifamily, the East Valley has been the area delivering the majority of the units, according to Morrow, with 2019 to represent 55 percent of all new multifamily inventory. Steele points to downtown Phoenix as an area experiencing an unprecedented amount of multifamily growth, noting there are more multifamily units under construction now than in the history of the city. “This is especially true for Class A high-rise projects, which is not new to downtown but is new at this high level of construction,” he says. “Much of this activity is being driven by the rising number of students attending Arizona State University’s downtown campus and wanting to live downtown for convenience and as a lifestyle opportunity. As a result, we’re also seeing more demand for restaurants and bars and will soon have downtown’s first full-service grocery store — a Fry’s Food Store being built as part of the Block 23 office building in CityScape.” Significant new multifamily construction activity is now peppering Phoenix’s central corridor, Morrow points out. This year, nearly a quarter of all new units (24 percent) will be in this area. The location-location-location factors for this popularity are the light rail, ASU’s downtown campus and many new non-residential projects — and, as discussed previously, the millennials’ preference for an urban lifestyle.
“North Tempe is another market experiencing significant growth, again a direct correlation to jobs and student demand from Arizona State University. Here, though, new construction activity is much broader — everything from conventional multihousing to student and senior housing,” Steele says. Observing that cost and demographic trends are pushing more renters into the multifamily market than ever before, Steele says, “We expect this to continue as the price of single family homes keeps rising.” He notes again the proven shift among millennials to rent versus own, “particularly in projects that are near points of transit. They want to be able to access their places of employment easily and like areas that score high on a walkability scale to nearby dining, shopping and entertainment. “That Phoenix can provide this demonstrates our continued commitment to become a first-class city,” Steele says. Alliance Bank of Arizona http://bitly.com/alliancebank Arizona Office of Economic Opportunity oeo.az.gov Beacon Economics beaconecon.com Brookfield Residential brookfieldresidential.com Camelot Homes camelothomes.com Colliers International colliers.com/en/United-States/Cities/Phoenix JLL us.jll.com Marcus & Millichap marcusmillichap.com NAI Horizon naihorizon.com RED Development reddevelopment.com Toll Brothers tollbrothers.com
Brookfield Residential Master-planned community in Avondale Developer Brookfield Residential (Arizona) LLC broke ground on its next master-planned community in Avondale, Arizona, on Thursday, April 4, 2019. “Brookfield Residential looks for opportunities to build communities located in close proximity to good schools and strong employment centers, with convenient access to transportation corridors,” says Brad Chelton, senior vice president of Brookfield Residential’s Arizona market. “Eastmark currently enjoys all of these characteristics, which is why it has been so successful over the last five years. Alamar in Avondale is quickly moving in that same direction, and we expect that we will experience the same success as the south Avondale submarket grows into a destination community much the same way that east Mesa has.” Noting that the developer expects its builders at Alamar to offer homes priced from the low to mid $200s to the mid to high $300s in a variety of styles, sizes and floorplans, Chelton continues, “We believe offering premium housing choices along the entire spectrum of price ranges allows economic development within a city to remain balanced and strong. By design, master-planned communities create value by offering a wide range of amenities and lifestyle components which have always equated to a premium within the market in terms of home values, appreciation and pricing. Providing housing choices for executives, growing families as well as young adults provides a diverse base of employees and customers that are necessary for a healthy economy.” brookfieldresidential.com