How Downtown Phoenix is evolving into a housing hot spot (2)

How Downtown Phoenix is evolving into a housing hot spot (2)

Article Originally Posted by AZBigMedia on May 12, 2023
Prior to the early 2000s, Downtown Phoenix was not the bustling, vibrant city we know today. The area offered none of the great restaurants, entertainment, retail or Downtown Phoenix housing options that citizens now enjoy on a daily basis.  

The downtown area has seen an influx of housing developments with a current focus on multifamily units. They are being built in conjunction with the continued revitalization of Downtown Phoenix as well as to combat the current housing crisis.

Over the last four decades, the City of Phoenix has worked to improve the image of the downtown area. In 1983, the Phoenix Community Alliance was founded and quickly got to work on several projects to revitalize downtown, including the opening of the Arizona Center in 1990 and the arrival of the Metro Light Rail system in 2008.

Prior to the Light Rail’s premiere, Downtown Phoenix also saw the opening of Margaret T. Hance Park, Footprint Center, Chase Field and the Arizona State University downtown campus. Along with all these big projects came restaurant and retail spaces opening to round out the downtown lifestyle.

Phoenix Vice Mayor Yassamin Ansari explains she has seen downtown development “skyrocket” in the two years she has been in office, and she credits the ASU downtown campus with being “one of the major catalysts, if not the biggest catalyst for downtown development.”

Downtown Phoenix housing

Now that downtown is the place to be, it is also becoming the place to live. Developers from across the country have set their sights on Phoenix for their next projects.

Clayco has been working in the Phoenix area for the past several years. The Arizona office started mainly in industrial work but eventually saw the opportunity to jump into the residential construction market.

“In the May 2021 time frame, the large demand for the rental-type property or projects was very high,” says Eric Jaegers, executive vice president at Clayco.

Clayco is constructing several housing developments across the Valley with a few in the downtown area, including X Phoenix Phases I and II, Skye on 6th and PALMTower. Phase I of X Phoenix has already been completed, and the other three projects are projected to be completed within the next two years.

Jaegers sees a future where housing development projects continue to pop up. “The market segment is still very strong,” he says. “The number of renters compared to the number of units available is still a very strong ratio from a needs perspective.”

He expects that Clayco will continue to construct these projects throughout the Valley.