Northmarq’s latest report on the Build-to-Rent sector predicts uneven performance in 2023 due to increasing vacancy rates as deliveries outpace market absorption. The tight capital market is causing developers to focus on finishing existing projects while delaying new developments. However, the long-term outlook for the sector remains favorable as the labor market performs well and high single-family home prices deter potential first-time buyers. Renter demand is expected to support rent growth, despite a 35% premium on Build-to-Rent units compared to traditional apartments. Construction financing is becoming more challenging to obtain, particularly from regional banks, and investment activity has slowed. Phoenix leads the Build-to-Rent construction market with nearly 6,000 units in its pipeline.

Rockefeller Group has acquired two sites in Phoenix’s South Mountain corridor for the development of 152 build-to-rent townhomes. The sites cover a total of 16.5 acres and are fully entitled, with first occupancies projected for Q1 2025. Both developments will offer amenities such as pools, hot tubs, and dog parks, with construction set to begin in summer 2022.

A recent RentCafé report shows that Metro Phoenix maintains its leadership position in the Build-to-Rent (BTR) and Single-Family Rental sector despite a nationwide boom. In 2022, 14,541 new units were delivered across the US, a 47% increase from 2021. Phoenix has delivered 6,071 BTR units between 2017 and 2022, with a 2022 inventory of 8,239 units, representing a 280% increase during the study period. The city also leads in units under construction with 5,473 units.

Rockefeller Group has acquired two sites in Phoenix’s South Mountain corridor for the development of 152 build-to-rent townhomes. The sites, totaling 16.5 acres, are fully entitled with first occupancies projected for Q1 2025. Groundbreaking ceremonies are planned for this summer. The townhomes will range from 1,126 to 1,525 square feet and include various amenities such as pools, hot tubs, and dog parks.