Nimble homebuilders shun the sprawl, search for infill gems within Valley cities

By Angela Gonzales

Homebuilders are finding small parcels of Valley to build boutique communities like Encanto at Bell Park near 12th Street and Bell Road in Phoenix.

Sold Rem Photography

Density is the magic word for a growing number of homebuilders who are scouring metro Phoenix for small parcels of land on which to build boutique communities.

For example, Encanto Living and Tidestone Partners just opened Encanto at Bell Park, an infill community of 35 homes on 2.5 acres of land at 12th Street and Bell Road in Phoenix.

With floor plans ranging from 1,323 to 1,912 square feet, prices start in the $400,000s, said Keith Mishkin, CEO and president of Cambridge Properties who is listing agent for the development.

"These types of infill communities typically do well," Mishkin said.

There is some price elasticity to where new product can go for 10% to 30% more than existing product in the area, but Encanto at Bell Park is priced equal to existing homes, he said.

While it can be difficult for developers to find these gems and rezone them, they are rewarded for their investment, Mishkin said.

"There are probably 10 to 15 in the Valley at any given time," he said. "Density is often eight to 15 units per acre, with either smaller lots or townhome style."

These boutique communities can be attractive to homebuyers as more of the bigger homebuilders focus on developing larger communities on the periphery of the Valley.

"People generally prefer to be closer to their work," Mishkin said. "It is also predictable for a homebuilder as they know what they can sell individual homes for versus being on the far outskirts."

Many national production homebuilders aren't attracted to infill because they prefer larger parcels, he said.

"It is the same amount of work to create a 100-lot development versus 10 to 40 lots," Mishkin said. "This creates a great opportunity for smaller, niche, boutique builders."

Dozens of Valley sites would fit the bill

Greg Vogel, founder and CEO of Land Advisors Organization, is tracking about 80 sites across metro Phoenix with active zoning cases that would be a fit for boutique developers and homebuilders.

That's not even counting the parcels under five acres, which he doesn't actively pursue.

"In nearly all cases, developers are pursuing rezonings to achieve higher densities — typically moving from lower-density residential to something between four units per acre for traditional single-family and up to 15 units per acre for higher-density townhome or similar product," Vogel said.

This trend of infill development is a natural progression in a maturing market like Phoenix, Vogel said.

"These smaller projects will continue to complement large-scale redevelopments such as Metropolitan, PV Mall and the few remaining large infill opportunities across the MSA," Vogel said.

Meisterwerk Fine Homes is building 17 homes on a 4-acre parcel near Central and Northern avenues in Phoenix on land that used to have three single-family homes on it, said Alexander de Faria e Castro, founder of Meisterwerk Fine Homes.

Called 100 Northern, the community offers homes ranging between 2,300 and 3,700 square feet and are priced from $1.15 million to $1.995 million, he said.

Of the 17 homes, nine are completed and one is under construction with an expected completion date in August.

100 Northern is a gated community with 17 modern homes being built by Meisterwerk Fine Homes.

Meisterwerk Fine Homes

"Infill is hard to find," he said. "I would love to find more in the north Central, Arcadia and Scottsdale area."

But it can be a lengthy process to go through city approvals, he said.

"You bind a lot of capital before you can put a shovel into the ground," de Faria e Castro said.

Dallas Peagler and Breena Westfall with The Brokery are listing agents for 100 Northern.

While the big production homebuilders are able to offer incentives such as rate buy-down packages, 100 Northern offers an option for a 4.99% interest rate, Westfall said.

"We're seeing a steady traction of people," she said. "As buyers have wrapped their heads around what interest rates are, more are coming forward."

Scottsdale builder: It's all about the 'why' question

Camelot Homes, a Scottsdale-based luxury custom homebuilder also has found several infill parcels.

Kevin Rosinski, COO for Camelot Homes, said it always starts with the "why" question.

"Why does someone want to live in that infill area," he said. "People want new, but people want the blend of being in a central location."

When he started seeing more people interested in moving back toward the city within the past couple of years, his team started looking for parcels of land to capitalize on that trend.

His team found a 1.5-acre vacant lot at 15th Street and Bethany Home Road, where eight luxury homes are being built in a community called Viridian.

With homes ranging between 2,700 and 3,000 square feet, prices start around $1.5 million for these two-story homes boasting iconic butterfly roofs and contemporary designs.

Camelot Homes is building eight of these homes in a boutique community called Viridian, with prices starting at around $1.5 million.

That community is getting ready to kick off home sales.

Camelot Homes has another boutique community near 15th and Glendale avenues with one lot remaining to be sold out of 14, Rosinski said.

Rosinski said Camelot Homes also is working on entitlements and zoning for a 2-acre parcel near Seventh Street and Palm Lane and another acre around Central and Missouri avenues.

"It's not for everyone, but we love doing it," Rosinski said.

These homebuilders are getting homebuyer traction at a time when nationwide homebuilders experienced a 12% decline in sales year over year in February, according to a Zonda report.

"The new home market in Phoenix was categorized as average in February, inline with the national average," said Ali Wolf, chief economist for Zonda.

"Local housing affordability and shaky consumer confidence is holding the market back from reaching its full potential," Wolf said.

Final Thoughts: The Rise of Boutique Infill Communities in Phoenix
As Phoenix matures, boutique infill developments are shaping the Valley’s housing market by offering modern, high-density living in prime urban locations. Unlike large-scale suburban sprawl, these small yet thoughtfully planned communities cater to homebuyers who prioritize proximity to city amenities, workplaces, and established neighborhoods.

With builders like Encanto Living, Camelot Homes, and Meisterwerk Fine Homes leading the way, infill projects provide an attractive alternative to traditional master-planned communities, blending new construction with the convenience of urban living. Despite the challenges of rezoning, land acquisition, and city approvals, demand for these developments remains strong—especially among buyers seeking luxury and centrally located homes.

Looking ahead, Phoenix’s real estate landscape will continue evolving as more developers capitalize on underutilized land to create unique, high-end residential enclaves. As affordability concerns and changing buyer preferences drive interest in urban living, boutique communities are poised to play a pivotal role in the Valley’s housing future.