August 28, 2025

Phoenix Rises as Key Apartment Construction Hub

News Summary

The Phoenix metro area has emerged as a leading location for apartment construction, ranking as the 4th busiest builder in the U.S. Significant developments like the luxury Ray Phoenix tower are set to drive this trend further. With over 46,200 apartments under construction, the city is meeting the housing demands fueled by rapid population growth. As build-to-rent homes gain traction, concerns arise regarding water policy implications, but industry leaders assert their necessity in addressing housing needs.

Phoenix – The Phoenix metro area is quickly becoming a notable hub for apartment construction, ranking as the 4th busiest apartment builder in the United States for 2025. This surge places Phoenix among a list of predominantly Southern cities, which have accounted for over half of all expected apartment completions nationwide.

Among these developments, Ray and VeLa have reached a significant milestone with their luxury project, Ray Phoenix, which stands at 401 units in downtown Phoenix. The ambitious 26-story tower is slated for completion by early 2026 and has amassed a construction debt of $200 million. This extensive project is part of a broader trend, as Greater Phoenix currently has more than 46,200 apartments under construction across 180 projects of 50 or more units.

Ray Phoenix occupies a central location at 777 N. Central Ave, strategically situated near bus stops and within walking distance of the vibrant arts district, Roosevelt Row, and the peaceful Japanese Friendship Garden, which spans 3.5 acres. The tower will feature a mix of studio, one-, and two-bedroom apartments ranging from 386 to 1,618 square feet. Each unit will provide expansive floor-to-ceiling windows and access to a range of amenities, including a gym, swimming pool, workspaces, and 4,500 square feet of retail space.

The financial backing for Ray Phoenix includes $120 million in financing provided by RXR last June, along with an $80 million origination from Axos Bank in December 2023. The architectural design has come from Johnston Marklee & Associates and Lamar Johnson Collaborative, while the interiors are being crafted by an in-house Ray team in partnership with Parts and Labor Design. The landscaping responsibilities fall to Grace Fuller Design, with Clayco serving as the general contractor for the undertaking, which commenced construction in April 2025.

Despite the rapid pace of apartment construction in Phoenix, data from Yardi Matrix indicates that multifamily deliveries reached nearly 24,000 units last year, while new construction starts have seen a significant reduction in early 2025, with only 2,200 units beginning construction in the first quarter. Nonetheless, Phoenix maintains its status as the top market for build-to-rent homes, with more than 20,000 units constructed, including 5,000 in 2024 and an additional 1,900 completed so far in 2025.

The increasing demand for build-to-rent homes in Arizona parallels the state’s ongoing population growth, which saw a net gain of over 109,000 residents in 2024 alone. These developments are catering to a diverse range of renters, including families seeking affordable single-family living solutions, while also appealing to those who prefer the conveniences found in apartment living. However, concerns have risen among lawmakers regarding potential exploitation of water policy benefits in areas with existing groundwater restrictions.

Critics have voiced opposition to the build-to-rent model, arguing that it may hinder the prospects for single-family home builders, while some lawmakers are engaged in discussions about new legislation aimed at addressing water policy implications related to these developments. In defense of build-to-rent homes, the Arizona Multihousing Association argues that they fulfill a vital need as Arizona continues to experience rapid growth.

As Phoenix adapts to an evolving housing landscape, the combination of increased apartment construction and the accommodative build-to-rent sector promises to meet the housing demands of its growing population.

Deeper Dive: News & Info About This Topic

HERE Resources

Gilbert, Arizona Ranked 7th Best Real Estate Market in the U.S.
Construction Delays for Arizona’s Tallest Tower Astra
Phoenix Family Struggles After Tragic House Fire
Arizona Player Wins $50,000 in Powerball Lottery
Jersey City Secures $255 Million in Real Estate Refinancing
Metro Phoenix Housing Market Faces Affordability Crisis
Mark Wahlberg’s Beverly Hills Mansion Sold for $55 Million
Fairfield Residential Acquires $244.8 Million Multifamily Portfolio in Phoenix
Tragic House Fire in Phoenix Claims Life of Young Man
Phoenix’s Luxury Apartment Boom: High-End Living Spaces

Additional Resources

Author: STAFF HERE PHOENIX WRITER

PHOENIX STAFF WRITER The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.

STAFF HERE PHOENIX WRITER

Stay Connected

More Updates

A newly built home in Phoenix, depicting sustainable features.

Would You Like To Add Your Business?

Submit