By Angela Gonzales | Phoenix Business Journal (abridged)
Developers are closing on vacant land to prepare for a shortage of multifamily housing units as existing supply dwindles over the next couple of years.
The peak of the supply wave for all types of multifamily product, including apartments and build-to-rent units, likely is in the rearview mirror, said Connor Devereux, director of market analytics at CoStar Group/Homes.com.
“A slowdown in construction starts over the past 18 months has contributed to a thinning multifamily pipeline and a more manageable delivery schedule in 2026 and 2027,” Devereux said.
Phoenix leads the nation in build-to-rent stock, with nearly 29,000 units of existing BTR and townhome inventory, according to CoStar. Another 3,800 units are currently underway, the most of any market in the United States.
Meanwhile, 27,300 traditional apartment units are under construction in the metro, which is down 29% from this time last year and 35% lower than the peak at the end of 2023, according to (Peter O’Neil, national director of research at) Northmarq.
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