Since the mid-1950’s, the Phoenix metropolitan market has grown from less than 500,000 people to over 4.5 million. Current annual population gains are in excess of 100,000 per year, bolstering economists’ forecasts for a market that will exceed 5 million residents by 2020. Of the households that are expected to be created through this growth, over 1/3 are expected to reside in apartments and condominiums vs. single-family homes. At Empire, we see tremendous opportunity in addressing this need through our multi-family development business – Aspirant Development, LLC.
According to CBRE, the number of new potential renters in this market is expected to exceed the delivery of new rental units by a ratio of almost 2:1. To make up for this shortfall, local developers such as Empire/Aspirant must build thousands of units of apartments to meet this demand.
Beyond the trends of rapid population growth and increased demand for multifamily housing, a third equally-substantial trend is at play – a desire among renters to live in Phoenix’s core/dowtown market. Where most older, more mature cities have witnessed this trend towards “downtown living” for the better part of the last 25 years, younger markets such as Phoenix are just now starting to catch onto this movement. With its recently-built light rail transit system, university campuses and professional sports stadiums, downtown Phoenix is experiencing a period of unprecedented growth that we believe will continue for the foreseeable future.