[quote=spdrun]
Apparently, Phoenix’s rental vacancy rate is close on 20%, so the vacant foreclosures were just replaced with vacant rentals. How is it efficient to be building outward when a lot of housing closer to job centers sits vacant?[/quote]
It’s funny, because I’ve heard the same things. A lot of the building is NOT a log way from job centers. A developer out of Chicago just finished the first building in this development:
They recently sold out another development just a few blocks away with probably more than 1,000 units in like 13 buildings. The development in the link is currently all rentals, the 1st building is complete, with 4 more to go. First building went from breaking ground to occupancy in less than 15 months. In less than 3 months on the market, it was 60% leased and more than 50% occupied. I viewed the units about a month ago. I thought rents were very high, more than $2,000 for under 1000 sq ft units. They haven’t announced yet whether the 2nd building (currently under construction) will be sold or leased. There are at least 3 other large condo developments that I’m aware of along the E. Camelback corridor.
I strongly suspect the high vacancy is on the much lower priced west side of the valley. In my more than 2 years here, I’ve never been to the west side.
