While multifamily permitting activity has fallen in Phoenix recently, approvals are still near record levels on an annual basis. Despite permit volumes coming down in the wake of the COVID-19 pandemic, nearly 12,500 multifamily units were permitted in Phoenix in the year-ending April 2020. That was one of the biggest tallies in the market’s history, second only to the March 2020 figure. This near-record level of multifamily permitting indicates that the Phoenix supply pipeline will remain robust for the foreseeable future as developers look to capture some of the market’s strong renter appetite. However, concerns for widespread overbuilding remain generally mild, as overall housing permits are still well below the 2000s-decade norm. Pulling the overall numbers down, single-family approvals are now being issued at about half the peak pace of permitting from 2005.
