Over 135,000 apartments could join the Phoenix housing market, according to the Q2 2023 Construction Pipeline report from Berkadia.
In addition to the 13,007 apartment units that have launched in the past year, 26,700 units are under construction in Phoenix. The area with the most new construction activity is Downtown Phoenix and the surrounding neighborhoods.
Furthermore, 30,637 units are in the planning stages, meaning their respective projects have received approval from planning and zoning authorities. Builders and developers have also expressed intent to construct another 64,828 units, although no formal plans have been submitted for these projects. Most of these prospective units are located in the Surprise area.
When you look at the number of apartment units, the time for approval and off site improvements must be considered. Proposed project can be on hold if the market does not absorb the new units. The number of new jobs should support the new projects under construction.