Hammers are pounding out a steady rhythm across metro Phoenix as developers — many of them making their market debuts — are constructing thousands more build-to-rent residences.
About 12,100 units are under construction, with another 5,700 planned in various stages, according to Colliers International research conducted exclusively for Phoenix Business Journal.
With around 8,200 homes available for lease today, the average occupancy of these rental communities is around 94.4%, said Thomas Brophy, research director for Colliers International.
These single-family homes are built within rental communities with amenities such as pools, clubhouses and barbecue areas. Many of these homes are detached single-story units with their own backyards, while others are townhome style. But they’re all different from the traditional garden-style apartment, with three or four floors.
Monthly rental rates are averaging around $2,069, a bit lower than the average $2,292 rental rates for a single-family home not built within a rental community with amenities. The overall average rent for metro Phoenix is $1,627, he said.
Developers debut BTR in Valley
• Boca Raton, Florida-based Mill Creek Residential is making its BTR debut in metro Phoenix with the development of Amavi Aster Ridge near Interstate 17 and Anthem Way in Anthem, north of Phoenix.
Mill Creek paid $11 million to K. Hovnanian Homes for 177 lots, according to Tempe-based Vizzda real estate database.
Construction is expected to begin in September, with the first homes to be completed in February 2024.
An amenity center, community pool, ramadas and playground with open space areas will be included.
Sam Griffin, vice president of land acquisition for Mill Creek’s Scottsdale office, said location of the site, strong in-migration to the Phoenix MSA and a growing employment sector in the Deer Valley and Anthem areas are what attracted the developer to the Phoenix market.
• Also new to the BTR niche is Scottsdale Investment Management, which has been focusing on commercial developments in metro Phoenix, such as office and retail since its founding in 1978.
The real estate and development company broke ground on a $50 million BTR project that will include 172 units in Laveen.
Called Legacy at Laveen Village, the 15-acre residential project at 35th Avenue just south of Southern Avenue is expected to be completed in early March 2025. It will include a mix of standalone and duplex units and include a resort-style pool and spa, a gym, play and prep areas, two children’s parks, multiple green belts and a dog park.
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