Intense construction activity puts Phoenix, Atlanta among best development markets in the nation
Ranking 4th and 5th respectively in terms of overall new construction during the past decade, both the Phoenix and Atlanta metros seem to be punching above their weight. With populations of around 5M and 6M, respectively, the two metros come ahead of Los Angeles and Chicago, showing remarkable real estate growth over the past decade.
Phoenix is one of the country’s fastest growing metros, with new residents attracted by a low cost of living and a strong employment sector. In fact, Phoenix is experiencing a surge in technology jobs — in the semiconductor and electric vehicle manufacturing industries, for example. Moreover, while Phoenix has traditionally been seen as a desirable destination for retirees, it has now become a hotspot for young people: the median age in the metro area is now 34, compared to the national average of 38, according to the US Census.
From 2012 to 2021, the Phoenix-Mesa-Chandler metro had building permits issued for approx. 207K new single family homes, with the activity in the sector picking up steam in each of those years. While 12K new single family homes were planned in 2012, by 2021 that number almost tripled, to 35K new homes. The multifamily sector has also expanded in Phoenix, with over 95K building permits issued for new multifamily units in the last ten years.
Roughly 21M square feet of new office space and 97M square feet of industrial space have been built in Phoenix over the last decade.