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Hybrid Build-to-Rent Construction Ramping Up Across Metro Phoenix

By February 3, 2021November 14th, 2022No Comments

By Angela Gonzales | Phoenix Business Journal

Nearly two dozen build-to-rent projects representing more than 3,800 units are under construction across metro Phoenix, as this hybrid model of single-family homes built in a rental community grows in popularity among renters, builders and investors.

With more than 3,750 units already existing in the market, another 4,700 units are in various planning stages, said Thomas Brophy, national director of research and analytics for Colliers International.

He’s seeing most of these build-to-rent projects stabilizing in the 96% occupancy range, which is about 40 basis points above current market averages.

“You get the general benefits of less dense living with varying degrees of backyards in addition to community amenities, such as pools,” Brophy said. “Given the robust response from renters regarding this emerging market segment, and even after accounting for projects under construction, the build-to-rent segment will represent less than 3% of total inventory. As such, this segment should continue to evolve and remain in high demand in the near to medium terms.”

Cavan Cos. LLC, a Scottsdale-based developer, has 1,664 units under construction in metro Phoenix, with another 155 nearly completed in Flagstaff.

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Related: Scottsdale Investor Buying Up Land for Single-Family Hybrid Rentals