The Phoenix market was hit hard by the housing crash and over the last seven years there has been very minimal new-home construction because of it, reports Skyler Irvine for MarketWatch. With fewer people purchasing homes, the multifamily industry has seen an influx of multifamily developments in the area.
With the expansion of light-rail public transportation in downtown Phoenix already in the works, developers are scrambling to build more apartments with competitive features and amenities. Record high rents have also done their part to spur this multifamily housing boom.
However, Phoenix homes sold in January were at the highest volume since 2013, and third highest since 2006. This year could be a big one for Phoenix real estate. Whether these newly creditworthy renters will decide to buy remains a mystery. But with a seven-year lack of newly built Phoenix homes and an existing seller's market due to lack of supply, it’s anyone's guess how a new batch of potential home buyers might impact the valley real estate market.
The Phoenix housing market is in position to experience the most activity it’s seen in over three years. The only question that remains is whether our current rental market is a boom or a bubble.