Roughly 20,000 new apartments are poised to open in the Valley this year, with 1,200 of those in downtown Phoenix. Within three miles of the 85004 ZIP code, 32 projects are proposed or going up. Could developers be overbuilding? Peter O’Neil, research director for Northmarq, says yes. “So we’ll overbuild in the short term and then demand should catch up with supply in the next few years as we slow the pace of new construction,” he said. He predicts multifamily will peak this year and permits and starts will drop off. This is a “weird market,” said Bruce Hanley, vice president of Commercial Properties Inc. in Tempe, in which demand isn’t keeping up with supply. Meanwhile, some projects have ground to a halt due to funding issues.
Source: https://www.bizjournals.com/phoenix/news/2024/03/12/new-downtown-apartments-raises-concerns.html
