By Corina Vanek | Phoenix Business Journal
Housing affordability, the fate of office work and the demand for industrial space in Phoenix were among the themes covered during the IREM CCIM Economic Forecast held January 14.
Robert Hicks, executive vice president for Portico Property Group, said the Valley is expected to see another 22,000 apartment units come into the market in 2022, following a year of double-digit rent growth and an average of 4 to 5% vacancy, illustrating the need for housing.
Rent growth in Phoenix is outpacing the cost of construction, leaving a long runway for new development, said Jay Ramos, vice president for Leon Capital Group.
However, the process to get a new development approved has gotten longer, Ramos said, adding that there sometimes appears to be a “disconnect” between municipalities’ perceptions of the need for housing and the true need. As neighborhoods and residents have organized more on social media and have pushed back on developers at the city level, the process for rezonings has slowed, he said.
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