A recent Bloomberg Business article came out stating that increased rents for apartments are driving Millennial’s to make their first purchase on a home. Millennials pulled ahead of GenXers as the most active segment of buyers in 2014 according to the National Association of Realtors. Additionally, first time home buyers made up 29 percent of existing-home sales in February.
So, what does this mean for your real estate in the greater Phoenix market?
Look for affordable housing in infill locations to start to be occupied by these millennials. Prime areas of South Scottsdale between Old Town & Tempe, and central Phoenix between Central corridor, Arcadia, Biltmore and Uptown Phoenix. These areas have plenty of opportunity for affordable purchases targeted by Millennials. These particular areas allow for the “live, work, play” environment with easy access to entertainment hubs.
Retail centers will continue to be redeveloped in these areas and provide additional shopping, restaurant, and entertainment opportunities. Local restaurants will thrive as they look for location two, three, four and beyond. These redevelopments will be centered around cool neighborhood restaurant concepts, rather than a traditional focus on the anchor of the development. Look for continued focused on infill redevelopment opportunities and upgrading of tenancy similar to projects that occurred at 16th St & Bethany Home and the current redevelopment of 32nd Street & Indian School and Central & Camelback projects.
For more information contact:
Kalen Rickard – Vice President
firstname.lastname@example.org | 602.778.3832