Per a recent RentCafé report, approximately 420,000 new apartments are expected to be constructed across the nation by the end of 2022. Metro Phoenix has taken the sixth spot nationally in terms of new development, with a 90% increase in apartment construction compared to 2021.
The report shows that while metro Phoenix saw 8,421 new units in 2021, there are an estimated 16,600 apartments on the way in 2022. Municipal Phoenix will see the majority of the new apartments at approximately 5,009 units. Coming in second place is Scottsdale with 1,866 units, followed by Gilbert at 1,795, Mesa at 1,769, and Glendale in the fifth spot with 1,581 new units projected.
The drive behind the recent boom in apartment construction comes from the growing demand for rental apartments nationwide. This demand is fueled by rising inflation and interest rates, which have made homeownership impossible for many renters.
Doug Ressker, manager of business intelligence at Yardi Matrix, pointed out one of the big reasons that many metropolitan areas, including Phoenix, are set to break records this year is that, “people who lived with family or friends during the pandemic formed independent households as employment and savings surged.”
Phoenix currently ranks eighth in the nation for new apartments built in the first half of 2022 with 2,240 units constructed and nearly 2,800 more expected by the end of the year. (Source)