With real estate development surging across America, StorageCafe conducted a study on construction in the 50 largest metros — and among them, Phoenix-Mesa-Chandler ranks fourth for growth. The industry blog analyzed construction in U.S. cities across six sectors (single-family, multifamily, office, industrial, retail and self-storage) over the last decade to determine the list.
As one of the country’s fastest growing metros, expansion in Phoenix was powered by new industry in fields like tech manufacturing. Since the start of 2012, 97 million square feet of industrial space was added. At the same time, the conception of Phoenix as a retirement location has shifted with a surge of young people moving to the city; the median age in the area is now 34 (compared to the national average of 38).
As such, 207,000 permits for new single-family homes were issued during the last 10 years. The multifamily sector also grew, with more than 95,000 building permits issued. Additionally, about 21 million square feet of office space and more than 15 million square feet of retail space was built.
Commenting on the findings in the study, Jacob Sagi, a real estate scholar at the University of North Carolina at Chapel Hill, said that anticipation of demand is driving development. “This is highly correlated with job growth and demographic shifts. In the last few years, we’ve seen both favoring the Sunbelt,” he said. “This is thought to be largely driven by a lower cost of living, lower taxes, lower regulatory constraints on development and the increasing high-skill labor pool in certain Sunbelt [metropolitan areas].”
The full list, as determined by StorageCafe, is as follows:
3. New York City
6. Los Angeles
7. Washington, D.C.