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.

Phoenix’s housing market has rebounded and become an economic success story, with a fast-growing job market and economy. However, challenges such as dwindling water supplies and a rising homeless population remain. The market is stabilizing, with increasing inventory and potential for price cuts and sales incentives in 2023. Despite high demand, there is a risk in water supply for smaller subdivisions and rental properties. The rental vacancy rate is above the national average, allowing room for negotiation between tenants and landlords. Rising mortgage rates may deter potential buyers, while consumer sentiment remains cautious due to inflation concerns. Arizona’s foreclosure and delinquency rates remain low, and home sales may increase if prices continue to moderate. Builder confidence is up in the West Census Region, and the Architecture Billings Index indicates a faster recovery in commercial real estate construction compared to the national average.