The multifamily industry groups also said there are an estimated 11.6 million apartment units nationally in need of renovations to stay competitive.
“The Phoenix metro area will need all types of apartments and at all price points,” said Tom Simplot, president and CEO of the Arizona Multihousing Association. “Phoenix apartment developers, owners and managers and their residents contribute $10 billion to the local economy annually, and that number is expected to rise with increased demand.”
The Phoenix metro area will add 150,000 new units by 2030, according to the NHCA and NPA report.
The region’s population could grow to 6.3 million by 2030. Los Angeles will have 14.5 million people. New York City will have a regional population of 21.1 million, according to the study.
The Valley has seen a build-up of new and renovated apartments since the last recession and real estate crash. That has seen new complexes and units landing in Scottsdale, Tempe and the East Valley as well as central and downtown Phoenix.
Demand has been driven by former homeowners who went through foreclosures and short sales in the last market downturn, millennials putting off home purchases, downsizing empty-nesters and those without incomes and credit scores to qualify for tougher-to-get mortgages.
The industry groups’ report projects 664,000 new apartments being built in California, 127,000 in New York, 749,000 in Texas and 669,000 in Florida.
Close to 39 million Americans live in apartments.
But many new apartments that have landed in submarkets such as downtown Phoenix, Tempe and Gilbert have been more high-end. That creates some concerns about affordable housing, Simplot said.
“For many families, locally and nationally, the shortage of affordable rental housing creates significant hurdles that can hamper their future financial success,” added Simplot. “This is not just a problem for today. By 2030, the affordable housing crisis will become even more severe unless public and private sector leaders take bold, innovative action.”