New data from the Colliers International real estate firm indicates the recent surge in new apartment development may be cooling off and laggard homebuilding maybe gaining some steam.
The real estate firm looked year-end 2015 land sales and permitting activity. Some of the key findings included:
- Landlords and developers took out 5,700 apartment permits last year, according to Colliers. That is a a 28 percent drop-off in permits for new multifamily/apartment in 2015 from 2014.
- Conversely, homebuilders took out 17,000 building permits in the Phoenix region last year. That is up 45 percent from 2014.
Both permitting indicators show a market that appears back in pre-recession modes.
Colliers Research Director Pete O’Neil said an uptick in land sales in the second half of 2015 could carry over into this year.
“The primary driver of land sales will be the housing market, with single-family permitting likely to see an increase of more than 40 percent in 2016,” O’Neil said.
Land sales for commercial uses rose 36 percent in the last two quarters of 2015 compared to the first half of the year. They rose 12 percent residential construction and 25 percent for industrial uses.
By: Mike Sunnucks at Phoenix Business Journal