AZ Real Estate 08-28-2016

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CATHERINE REAGOR REAL ESTATE

Apartment boom in the Northeast bolsters home building market, while the West slips

CONSTRUCTION OF NEW HOMES AT 6-MONTH HIGH

10K new apartments to come as rents rise It’s getting pricier for the convenience of calling your landlord when the AC breaks, the internet is down or the swimming pools needs cleaning. Rents are on the rise in metro Phoenix, particularly in infill hot spots in Phoenix, Scottsdale and Tempe. The Valley’s average apartment rent has climbed 22 of the past 23 months, according to national research firm Axiometrics. The average apartment rent in the Phoenix area is now $924, according to the rental data firm RealPage. That’s about $70 more than it was a year ago. Demand for rentals surged during the housing crash when so many people lost homes to foreclosure and had to rent. Adding to that already big pool of renters are Millennials who aren’t ready to or don’t want to buy homes. But higher rents are also bringing more apartment construction.

JOSH BOAK ASSOCIATED PRESS

WASHINGTON - Apartment construction in the Northeast fueled a jump in home building in July as the pace of housing starts nationwide reached the strongest pace in six months. The rate of overall construction rose 2.1 percent to a seasonally adjusted annual rate of 1.21 million from 1.19 million in June, the Commerce Department said recently. That was the highest level since February. Most of the gain came from an 8.3 percent acceleration in the construction of multifamily buildings. Construction of single-family houses edged up just 0.3 percent. “Continued recovery in housing will be supported by historically low mortgage rates, coupled with a firming labor market that has begun to spur on wage gains for workers,” said Neil Shankar, an economist at TD Bank.

Apartments leading the way for homebuyers Tempe launched the Valley’s latest apartment development spree a few years ago, when new high-end complexes started going up around the city’s lake and Arizona State University. Now, long-vacant prime parcels in downtown and midtown Phoenix are sprouting new apartment complexes. And older buildings in central Phoenix and Scottsdale are being torn down to make way for new apartments and condominiums. Tom Simplot, CEO of the Arizona Multihousing Association and a former Phoenix councilman, told me apartments lead the way for people to buy homes in an area. “People first became comfortable living in central Phoenix by renting,” he said. “Those of us living downtown are no longer urban pioneers, and we welcome all the new people and growth, whether rental or homeowners.” Rents are climbing in many big U.S. metros, but Phoenix saw the fourthbiggest U.S. increase in rents during the summer, per RealPage stats. Sacramento was No. 1 with an almost 10 percent jump. Portland and Se-

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FIVE-STAR UDC BUILD IN KIERLAND. Elegantly finished, MLS# - 5480348 the generous plan has distinctive architectural touches, soaring Bedrooms - 4 ceilings and speakers inside and out. Picture windows span the Bathrooms - 3 back of the home overlooking the yard. Gorgeous caramel-hued Pool - Yes granite, double wall ovens, artisan tiled backsplash and beautiful cabinetry complete the island kitchen. Granite surround fireplace. Sq. Ft. - 2,852 Double doors reveal the king-sized sitting room master with Garage - 3-Car private exit, custom shelved walk-in closet and lavishly redone Lot Size - 9,220 sq. ft. bath. Fourth bedroom set up as an office with built-ins. Tropical ZIP Code - 85254 paradise oasis. Pretty palms, spa, pool with picturesque waterfall, emerald lawn and colorful hibiscus. In the Magic 85254 Zip Code. Online Pics - ThoseCallaways.com – Joseph Callaway Price - $699,900

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PHOENIX | 2570 East Ocotillo Road | Open Today 1–5PM

VIEW-RICH HIDEAWAY IN BILTMORE MOUNTAIN MLS# - 5460415 ESTATES. Featuring a panorama of magnificent mountain and Bedrooms - 4 city lights views, this hillside hideaway is located on a quiet culde-sac inside the exclusive guard-gated community of Biltmore Bathrooms - 3.5 Pool - No Mountain Estates. Nestled next to the pristine Phoenix Mountain Preserve w/gated access to hiking trails. Stunning stone finishes, Sq. Ft. - 5,209 beamed ceilings, wood floors, skylights. Sleek/chic ultra-modern ZIP Code - 85016 kitchen. Sun-kissed family room w/soaring arched windows. Executive office. Hot tub, romantic fire-pit patio overlooking city Online Pics - BaldwinTeam.com Price - $1,950,000 lights. Wow setting for entertaining and/or easy peaceful living: secluded and private, yet very in-town and close to everything. Visit tourfactory.com/1592824. Inside: details, directions.

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