Tower Capital, which connects apartment developers and buyers to financiers, predicts a potentially “challenging, wonky year” for the multifamily market in Phoenix due to various factors. Phoenix has a growing job market and population, which keeps housing demand high. There was a significant amount of new construction in 2023, which is likely to create downward pressure on rents as supply is delivered. The softening in the market has made it challenging for developers to get new projects capitalized. In some cases, multifamily housing developments, such as The Grid in downtown Mesa, have stalled construction. As the market navigates these complexities in the second half of 2024, Tower Capital is optimistic about what’s to come for the multifamily market, encouraging everyone to push through as good things are on the horizon.
