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They are building a lot of housing in Arizona, it is mostly luxury apartments which contributes to the problem of affordable rents because it tends to increase

They are building a lot of housing in Arizona, it is mostly luxury apartments which contributes to the problem of affordable rents because it tends to increase the rents of neighboring apartments. They also did a bunch of ‘condo conversions’ back in the real estate bubble which took inventory off the rental market and (from my non-scientific survey from driving a cab around the Phoenix metro area for nine years) they haven’t been putting any effort into affordable housing but just build massive, block sized, luxury apartments. After the real estate bubble unless you want an hour commute all new housing is ‘infill’ and there’s a reason that a lot of that land wasn’t snapped up before. Now it’s super expensive, needs rezoning and quite often they’re tearing down multiple buildings to get a large enough lot size to make it worth their while. Plus, they need a lot more water before they build a lot more housing. Phoenix is in the middle of the desert after all.

DoreenMichele 4y ago
The need for more housing, especially affordable housing, is a nationwide issue. It's not just Arizona.
- UncleEntity 4y ago
  Well, TFA was about Arizona and I live in Arizona…
  - DoreenMichele 4y ago
    I think we are speaking past each other. I wasn't criticizing your comment, more like clarifying mine. I've studied housing issues and homelessness. This is a nationwide issue in the US currently.
janalsncm 4y ago
I’m less concerned about the “class” of new apartments that are being built. In any market there are only so many people who can/will pay “luxury” prices. The wealthiest will always move on to the newest, shiniest thing, but as those apartments age they should become more affordable. Whether they do or not is an empirical question. However, if excess supply is being bought up by wealthy landlords, this is a problem because they will be able to drive the price up.
- UncleEntity 4y ago
  > …but as those apartments age they should become more affordable. Unless population grows faster than prices can decrease keeping demand high. And apparently it is the second fastest growing state.
lfodofod 4y ago
> They are building a lot of housing in Arizona, it is mostly luxury apartments which contributes to the problem of affordable rents because it tends to increase the rents of neighboring apartments. This does not make any economic sense whatsoever. From your sibling comment: > Unless population grows faster than prices can decrease keeping demand high. Isn’t it the population growth that’s causing rent increases? Not luxury apartments, unless you think luxury apartments are the cause of this population growth. I suppose that wouldn’t be impossible, but it’s more something you’d expect to see in places like Jackson Hole.

DoreenMichele 4y ago

The need for more housing, especially affordable housing, is a nationwide issue. It's not just Arizona.

UncleEntity 4y ago
Well, TFA was about Arizona and I live in Arizona…
- DoreenMichele 4y ago
  I think we are speaking past each other. I wasn't criticizing your comment, more like clarifying mine. I've studied housing issues and homelessness. This is a nationwide issue in the US currently.

janalsncm 4y ago

I’m less concerned about the “class” of new apartments that are being built. In any market there are only so many people who can/will pay “luxury” prices. The wealthiest will always move on to the newest, shiniest thing, but as those apartments age they should become more affordable. Whether they do or not is an empirical question. However, if excess supply is being bought up by wealthy landlords, this is a problem because they will be able to drive the price up.

UncleEntity 4y ago
> …but as those apartments age they should become more affordable. Unless population grows faster than prices can decrease keeping demand high. And apparently it is the second fastest growing state.

lfodofod 4y ago

> They are building a lot of housing in Arizona, it is mostly luxury apartments which contributes to the problem of affordable rents because it tends to increase the rents of neighboring apartments. This does not make any economic sense whatsoever. From your sibling comment: > Unless population grows faster than prices can decrease keeping demand high. Isn’t it the population growth that’s causing rent increases? Not luxury apartments, unless you think luxury apartments are the cause of this population growth. I suppose that wouldn’t be impossible, but it’s more something you’d expect to see in places like Jackson Hole.