Multifamily developers continue to build at a vigorous pace in the Phoenix metropolitan area, but a unique segment of the market, single-family rentals, is gaining traction in the suburbs like the West Valley submarket. Of the 1,660 units currently underway in the submarket, about 42% is attributed to single-family rentals.
Christopher Todd Communities is the developer behind the three single-family rental projects currently underway in the West Valley submarket. Two of the projects are in the city of Surprise and one in Goodyear. Floor plans range from 660 to 1,020 square feet and rents are from $1,130 to $1,490.
This hybrid housing option is not new to Phoenix but has gained traction in recent years, especially in this part of the metro area. The West Valley achieved tremendous population growth throughout the expansion but was largely ignored by multifamily builders from 2010 to 2017, who were more focused on growth submarkets with above-average rents. Since then, vacancies fell to record lows and motivated developers to ramp up production.
For-rent, single-family homes are a response to the strong demand for housing and low levels of residential home building. While single-family rentals have the interior layout and backyard that a residential home provides, they still perform like a multifamily rental with no required down payment, more mobility and fewer maintenance worries. These communities typically attract renters by choice.
Christopher Todd, in addition to other active developers such as NexMetro and BB Living, will compete with more-traditional apartment communities moving forward. NexMetro delivered two Avilla single-family rental developments in the submarket this summer: the 127-unit Avilla Meadows in Surprise and the 136-unit Avilla Camelback Ranch in Phoenix. Avilla Camelback Ranch leased at a strong rate, and, as of the third quarter, is 94% occupied, according to CoStar data.
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