Thread: Many new apartment complexes in Phoenix and Atlanta

Phoenix renters finally seeing better deals, thanks to the many new apartment complexes

Catherine Reagor, The Republic | azcentral.com
Published 6:00 a.m. MT June 3, 2018

What is the average rent paid by Phoenix-Metro residents? Wochit


(Photo: Crescent Communities)

STORY HIGHLIGHTS

• Rents have already dipped a bit in central Phoenix and Scottsdale this year
• About 17,900 apartments are under construction or planned in the Valley now
• About 69 percent of recent renters in metro Phoenix came to the Valley because they felt more likely to be able to find a job and afford an apartment

Renters looking to move into one of metro Phoenix’s new, deluxe apartments could be in for a pleasant surprise.

Many of the Valley’s newest rental complexes are offering renters deals to help them fill vacancies before other new apartments under construction open and lure them away.

Phoenix ranks ninth among big U.S. cities for the most apartment concessions currently being offered, according to a new report.

Greg Willett, RealPage’s chief economist, said it's typical for renters to get about three weeks of free rent now at new Valley apartments.

That's a discount of about 6.3 percent on a lease, according to the national apartment research firm.

Atlanta leads the nation for the most apartment concessions now with about a 9.1 percent rebate on a year-long lease. But the Georgia city has had more apartment construction than the Valley so far.

MORE: For the first time in years, metro Phoenix apartment rents didn't rise

Apartment building boom

About 21,500 new apartments, mostly in central Phoenix, south Scottsdale and Tempe, have gone up since 2015, according to RealFacts.

That compares to 33,700 in Atlanta.

Metro Phoenix’s apartment building spree is far from over. About 17,900 apartments are under construction or planned in the Valley now, according to Phoenix-based ABI Multifamily.


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Phoenix homes to be torn down for apartment complex
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Fences surround the homes at Third Street and Earll Drive in Phoenix on May 17, 2018. Patrick Breen/The Republic

That list includes a new 329-unit complex to go up on a central Phoenix block where almost 20 old homes will be demolished to make way for it.

Despite the Valley’s many new apartments, the area's vacancy rate hasn't shot up and is hovering around 5 percent, according to several apartment researchers.

Metro Phoenix's strong population growth is a big reason why.

MORE: Block of homes in central Phoenix to be demolished for apartment complex

Relocation, relocation, relocation

About 69 percent of recent renters in metro Phoenix came to the Valley because they felt more likely to find a job and afford an apartment here than other big U.S. cities.

A new survey from national firm Apartment List tracked "location-first movers" who search apartments in multiple cities away from their hometown and pick the place where they have the best chance to find a job.

Phoenix tied with Portland to rank second on a list of the top large U.S. cities for location-first movers. Las Vegas was No. 1.


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Optima Sonoran Village luxury apartments in Scottsdale
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The Optima Sonoran Village apartments opened in 2013 near Scottsdale and Camelback roads. Parker Leavitt/The Republic

The other group tracked, "jobs-first" renters, typically move to more expensive cities when they already have a job.

More people are definitely moving to the Valley. Last year, Maricopa County led the nation for population growth by drawing 74,000 new residents, according to the U.S. Census. That’s about a 1.7 percent jump from 2016.

Jobs drew many new Valley residents. Phoenix-area job growth climbed 2.7 percent last year, with 54,000 jobs added.

Population and job growth are driving apartment developers, but concessions and slower rent increases show builders may be a bit ahead of those two key indicators.

Goodbye to rent spikes?

After a few years of heady rent increases, Valley apartment costs are dipping, flattening out or at least not climbing nearly as fast.


Overall, the average metro Phoenix rent climbed about 6 percent last year. That came on the heels of increases of 8 percent or more in many parts of the Valley during 2015-16.

This year, some apartment researchers are calling for the Valley's average rent increases to slow again. Peoria, Surprise, Gilbert and Chandler, where apartment development has lagged compared to other parts of metro Phoenix, could see the biggest rent increases.

Rents have already dipped a bit in parts of central Phoenix and Scottsdale this year, particularly when concessions are added in.

With concessions and the many new apartment projects still underway in those parts of the Valley, renters should be able to find better deals this summer.

https://www.azcentral.com/story/mone...xes/653085002/

U.S. Needs 4.6 MILLION New Apartments by 2030

WE NEED TO DEPORT 20 MILLION ILLEGAL ALIENS, REFUGEES, TPS, ASYLUM LIARS AND VISA OVERSTAYS

PLENTY OF HOMES WILL OPEN UP!

This Week in Atlanta Real Estate: New skyscrapers, Atlanta’s segregated amenities and more

by LAUREN CLOHESSY JUNE 8, 2018



City Lab released a report on the segregation of Metro Atlanta’s amenities. The report focused on areas around Atlanta, with a specific interest in DeKalb County. Currently, DeKalb County the wealthiest and white residents live on the north side of the county and South DeKalb is a majority-black area.

City Lab discovered that downtown Atlanta and northern DeKalb County have the most amenities, like banks, healthy food choices, grocery stores and fitness and recreation centers. South DeKalb is fighting back and lobbying to for the right to start their own city, Greenhaven. Greenhaven would help residents fight for more amenities.

In other Atlanta real estate news:

• Buckhead may be seeing a new residential tower. According to Curbed, PM Realty Group is in working on a deal to buy land to build a skyscraper in Buckhead. At this time, the location is still unknown. The deal is still in the air, but PMRG Chairman Rick Kirk said the multifamily structure would resemble The Confluence in Denver, which is also a PMRG development.
• The Atlanta City Council adopted the Westside Land Use Framework plan in December, leaving residents’ minds at ease because they thought the development would improve their community. Brock Built Homes’ newly presented plan now has residents worried the development will threaten affordability, reported the Atlanta Business Chronicle. Adam Brock from Brock Built Homes is trying to ensure residents the plan will stay within the city’s guidelines for affordable housing.
• Residents are also worried about affordable retail areas.
• GJ Enterprises Acquisitions is the most recent company to pitch multifamily homes on the Atlanta’s Upper Westside. According to Bisnow, the company has over $37 million to finance a 271-unit apartment complex off Marietta Boulevard. Bisnow reports Atlanta’s Upper Westside area is one of the more affordable areas for renters, because there’s no need for parking decks.
• Robert Mullice, managing partner of Air Realty, received permanent funding for his two-phase apartment project. Mullice’s plan, The Pad on Harvard, is a $41 million development in College Park that began in 2015, according to CoStar. Deutsche Bank gave Mullice a permanent, interest only loan for $13 million. The Pad’s first phase was finished in early 2017 as a five-story apartment building off Harvard Avenue. The plan for Pad II is now underway.

https://atlantaagentmagazine.com/201...ted-amenities/