Published August 18, 2024
Phoenix among best in nation for real estate growth since 1980
Phoenix among best in nation for real estate growth since 1980
A new study ranks Phoenix as one of the nation's best real estate cities over the past several decades.
Phoenix ranks as the second-best performing city in the country for real estate development between 1980 and 2023, according to the analysis from StorageCafe. The Valley trails only Houston on StorageCafe's rankings, which include the 100 largest cities in the U.S.
The report pulls information from the U.S. Census, Commercial Edge and Yardi Matrix. It considers real estate activity across single family, multifamily, industrial, office, retail and self-storage projects.
Phoenix, which has long been a hot spot for homebuilders, dominated the single family category over the 43-year span of the study. The metro registered 215,281 single-family housing permits since 1980, nearly 50,000 more than the next highest city. The rest of the top 5 included three Texas cities: Houston (166,268 permits); Jacksonville, Florida (163,852); Fort Worth (161,446); and San Antonio (158,406).
Apartment construction has also been a growth sector for Arizona's capital over the decades. Phoenix ranks No. 7 for multifamily development since 1980, with 187,518 units permitted. New York dominated that category with 679,361 units permitted, nearly doubling No. 2 Los Angeles (364,612).
The Valley proved consistent in the StorageCafe rankings, landing among the top 10 cities in all six of the key sectors identified in the study. It ranked No. 3 for industrial construction with more than 127 million square feet of development since 1980 — second only to No. 1 Houston (nearly 292 million) and No. 2 Fort Worth (138 million).
More recent data shows Phoenix now ranks as the No. 1 city in the nation for industrial construction, with nearly 40 million square feet underway as of June. East Valley cities are continuing that momentum with an influx of advanced manufacturers flooding into the region.
Phoenix also ranked No. 6 for self-storage development with roughly 11 million square feet; No. 7 for retail development with more than 48 million square feet; and No. 9 for office development with 71 million square feet over the past 43 years.
The study also compared how national real estate trends have evolved over the past 40-plus years. For instance, the study found that in 1980 new office supply amounted to 227 million square feet — a figure that dipped 69% to under 70 million square feet in 2023. New retail supply was down 89% over the same span, from more than 191 million in 1980 to roughly 21.4 million in 2023.
Self storage development has spiked 153% since 1980, a higher increase than any other sector. Industrial development jumped 39%, single family has increased 30% and multifamily development has seen a 23% bump.
Final thoughts:
Phoenix's remarkable real estate growth over the past several decades highlights the city's resilience and adaptability in an ever-changing market. From leading the nation in single-family housing permits to becoming a powerhouse in industrial construction, Phoenix has proven itself a top contender in real estate development. As the Valley continues to attract advanced manufacturers and expand its industrial footprint, the city's consistent ranking across all key sectors underscores its pivotal role in shaping the nation's real estate landscape. With a bright future ahead, Phoenix remains a beacon of growth and opportunity in the real estate industry.
