The housing market in Phoenix is growing in many directions. The growth has been noted not only in the renting of apartments, but also in the market of purchasing apartment complexes.
The state of Arizona is expected to grow by 1 million people by the year 2027. This is according to the Arizona Office of Economic Opportunity. With the projected increase of new residents in the valley, the demand for housing is up. There is a strong chance that many relocating to the area may rent upon first moving to the city, which could entail a long process of deciding if they are inclined to a certain area of residence. Even if the influx of people is able to afford to buy a home, they are sure to follow the path of trying out different neighborhoods, and renting apartments in the area, to see if they feel at home. Because of this, apartment development is growing.
Over 9,000 new apartments are expected to be built in the Valley alone, with another 16,000 planned. Investors are also buying out Valley apartment complexes almost every day, and for large price tags. Just this past week, New York based Blackstone Group bought six apartment complexes for $311 million dollars. They also purchased five other complexes in the Valley just last year. Many out-of-state buyers have poured $1.5 billion dollars into the economy during the second quarter, according to ABC Multifamily. This is a 13% increase from the same quarter last year. The growth is sure to cause even more of a surge in development, residence, and hopefully, a large increase in the lucrative residential market for Phoenix.