Apartment Supply Set to Triple in Desert/Mountains Region in 2025

The Desert/Mountains region is still a favored spot for apartment investors, and, increasingly, developers too as supply here is set to triple pre-pandemic tallies. In the year-ending 2nd quarter, roughly 60,000 new apartments were delivered in the Desert/Mountains region, including nearly 20,000 units from Phoenix alone. That was well ahead of the standard supply volumes this region saw in the years leading up to the pandemic, when roughly 20,000 to 30,000 units were competed annually. New supply scheduled to deliver in the year-ending 2nd quarter 2025 is even higher, with roughly 85,000 units slated to come online in the Desert/Mountains region. Even though demand has been sizable, it hasn’t kept pace with historically high supply, and that should be the case in the coming year as well.

For more information on the state of apartment markets in the Desert/Mountains region, including forecasts, watch the webcast Market Intelligence: Q3 Desert/Mountains Region Update.