Post-recession apartments follow new luxury trend - Ahwatukee Foothills News: Money

default avatar
Welcome to the site! Login or Signup below.
|
||
Logout|My Dashboard

Post-recession apartments follow new luxury trend

Print
Font Size:
Default font size
Larger font size

Posted: Friday, May 11, 2012 8:04 am

Many industries are rebounding from the Great Recession by producing more modest versions of their product to meet consumer demands, but the Valley’s resurgent apartment sector is bucking that trend with new units that feature everything from Roman soaking tubs to granite countertops.

The trend reflects a big shift in who lives in apartments, as many former homeowners can’t afford a single-family house now but have a family that doesn’t fit comfortably in a traditional apartment.

One example of the shift can be seen at 224-unit San Marquis Apartments in Tempe, the largest large-scale multifamily property to open in the Valley in more than two years.

Owner Mark-Taylor included resort-style pools, clubhouses, stainless steel appliances, granite countertops, kitchen islands and upscale designs and finishes not typically found in apartments. The privately-held developer is marketing its Tempe complex as “luxury homes cleverly disguised as apartments.”

Mark-Taylor President Dale Phillips said the trend is a response to former homeowners but also to a large number of condos built in the real estate bubble that have since become apartments. Those units had more upscale features than rental properties and are now forcing apartment builders to position new properties with more house-like amenities.

“If you’re going to build an A-product now, you have to be aware of the competition and in a lot of cases, your competition is something that was intended for sale,” Phillips said.

The company is incorporating the same features in a 383-unit Chandler community that’s scheduled to open this summer. The amenities have allowed Mark-Taylor to set rents about $150 above the rest of the market, he said.

Rates range from $995 to $1,854 for one-, two- and three-bedroom units.

Phillips said about 19,000 multifamily units are planned in the Valley in the next three years, and he expects about 2/3 of those have a strong chance of actually being constructed. Hardly any new apartments came online in the last few years, despite historic construction levels of about 10,000 units a year.

The multifamily industry has shifted because the residential real estate crash created a change in who lives in apartments, said Mark Stapp, the executive director of the Master of Real Estate Program at the W.P. Carey School of Business at Arizona State University.

Many families with children and pets will be in apartments for some time because of reduced incomes, damaged credit and a shrinking supply of homes on the market, he said.

“Now you’ve got apartments that are actually competing with single family homes. You weren’t having to worry about that before,” Stapp said. “Apartments were a step before you got into a home.”

He expects the multifamily market will respond with options beyond the more house-like designs.

Stapp said there’s also a growing number of smaller apartments that are more cost-effective while still offering high amenities. He expects apartment communities will become less homogenous than in the past as each location caters to niches, such as access to Metro light rail.

On the downside, Stapp is concerned about a shortage of affordable housing because the housing industry may have trouble meeting future demand. Builders face limitations because of tight credit and the loss of many construction workers who left the Valley during the economic downturn, he said.

“This does put pressure on the lower-income level market,” Stapp said. “They get priced out of the market and that can become a real issue.”

  • Discuss

Protests Over Western Troops Threaten Libyan 'Unity' Government

Print Libya's UN-backed Government Condemns France Following Crash Three French Soldiers Killed During Operation in Libya Islamist-backed demo…

Published: July 25, 2016 - 9:36 pm @ http://www.voanews.com/content/libya-un-backed-uni…

Phoenix Serial Street Shooter likely using multiple vehicles

PHOENIX - Phoenix police said they are getting new details and tips about a serial shooter connected to seven murders . But investigators can’…

Published: July 25, 2016 - 8:58 pm @ http://www.abc15.com/news/region-phoenix-metro/wes…

Group behind $12/hour minimum wage initiative wants lawsuit dropped

Arizona Healthy Working Families, the group behind a ballot initiative to make the state's minimum wage $12 an hour by 2020 , wants to dismiss…

Published: July 25, 2016 - 8:35 pm @ http://www.abc15.com/news/state/group-behind-12-an…

Larry Fitzgerald remembers Dennis Green in essay

Dennis Green was more than just a football coach. In a Player’s Tribune piece written by Larry Fitzgerald, the wide receiver recalls his longt…

Published: July 25, 2016 - 8:28 pm @ http://arizonasports.com/story/744945/larry-fitzge…

Praising Kaine: How Clinton's choice of a widely respected senator drives a deep wedge into the GOP

Hillary Clinton announced her selection of Virginia Sen. Tim Kaine as her running mate late on Friday evening, and something incredible has al…

Published: July 25, 2016 - 8:27 pm @ http://www.dailykos.com/story/2016/07/23/1551229/-…

Arizona becomes the last state to provide health insurance to low-income children

Arizona is rejoining a children's health insurance program for low and middle-income families, becoming the last state in the union to provide…

Published: July 25, 2016 - 7:58 pm @ https://www.washingtonpost.com/news/to-your-health…

The WNBA’s Black Lives Matter Protest Has Set a New Standard for Sports Activism

This month, the WNBA has become the site of one of the most united, persistent political statements in sports history. In recent weeks, entire…

Published: July 25, 2016 - 7:31 pm @ http://www.slate.com/blogs/xx_factor/2016/07/25/th…

In Opinion: Chances of survival for a Democratic Senate are slim

This article first appeared on the Dorf on Law site. Many Democrats are anticipating a big night on November 8.   Although the inevitable nois…

Published: July 25, 2016 - 7:30 pm @ http://www.newsweek.com/chances-survival-democrati…

Bernie Sanders Supporters Chant ‘Lock Her Up’ in Philadelphia Protest Against Clinton

PHILADELPHIA — It’s not just Republicans that want presumptive Democratic nominee Hillary Clinton in prison. At a lively Sunday march in suppo…

Published: July 25, 2016 - 7:28 pm @ http://blogs.wsj.com/washwire/2016/07/24/bernie-sa…

Tribal leaders call on next president to include Native voices

By Kelsey DeGideo | Cronkite News PHILADELPHIA – Edward Manuel ticks off the issues – water shortages, federal approval of mining projects, al…

Published: July 25, 2016 - 7:27 pm @ http://cronkitenews.azpbs.org/2016/07/25/arizona-t…

Facebook

ahwatukee.com on Facebook

Twitter

ahwatukee.com on Twitter

RSS

Subscribe to ahwatukee.com via RSS

RSS Feeds

Spacer4px

Most Popular

Online poll

Loading…