Arizona continues to be one of the most active multifamily markets in the country, driven by sustained population growth, evolving renter preferences and ongoing economic pressure points. As BSB Design continues to expand its presence in the Southwest, Zach Hall joins the firm as Director of Architecture and Engineering Development, bringing eight years of experience in the commercial and residential construction industry.
Zach’s background includes working closely with architectural product manufacturers and dealers, partnering with the AEC industry to drive specifications and deliver large scale commercial projects from concept through completion. His experience managing regional and national sales teams, combined with a strong focus on client relationships, positions him to support strategic growth and collaboration across markets.
His perspective on Arizona’s multifamily landscape highlights five key trends shaping development today.
1. Build to Rent Maintains Strong Momentum
Build to rent remains a significant contributor to new supply, accounting for approximately 30% of all deliveries. This product type continues to resonate with new and young families who have been priced out of homeownership due to elevated interest rates. It offers an alternative that bridges the gap between traditional apartments and for sale housing, delivering a single family lifestyle within a rental model.
2. Townhomes and Garden Style Gain Preference
Lower density product types such as townhomes and garden style communities are becoming more prevalent. These formats integrate more easily into existing neighborhoods due to reduced building heights and lower density per acre. In contrast, mid rise and podium construction is largely concentrated in urban infill locations where higher density is required to support land costs.
3. Supply and Demand Are Beginning to Align
After several years of rapid development, supply is starting to catch up with demand. In 2025, approximately 22,000 units were delivered, while absorption reached 17,000 units. While demand still exceeds supply overall, the gap is narrowing, resulting in more stabilized rent growth across the market.
4. Outdoor Amenities Are Now Essential
Arizona’s climate continues to influence design priorities, making functional outdoor spaces a necessity rather than a premium feature. Communities are increasingly incorporating shaded gathering areas, pools, pet amenities and open turf spaces to support year round usability. These elements are now expected across a broader range of asset classes, not just Class A developments.
5. Financing Constraints Continue to Impact Development
Although lending conditions have improved slightly from peak interest rate levels, financing remains a key challenge. Higher borrowing costs continue to delay or halt some projects, requiring more disciplined planning and coordination. This environment places greater emphasis on efficient design solutions that align with evolving financial parameters.
