By Shelley Sakala
Phoenix has been a hot destination for homeowners for many years. And, in 2023, it continues to be a top choice for those looking to settle down in a thriving metropolitan area. Whether it’s for our sunny weather, job opportunities at new businesses like the TSMC, or low taxes, people from all over the country are flocking to Phoenix in record numbers – to the tune of 300 per day in Maricopa County.
However, the surge of new residents coupled with a spike in home prices has caused a shortage of housing options in some areas of the Valley including Norterra and Anthem, which has resulted in increased demand for homes and apartments.
While home builders have been conservative in their new construction projects, the need for multi-family housing has opened up new opportunities for apartments and the new trend of stand-alone homes for lease – marketed as homes that rent like an apartment and live like a home. Also, the new growth has brought several exciting new restaurants, shops, and entertainment to our area.
One common concern among homeowners is how these new apartment buildings will affect their property values. While some studies have suggested that proximity to multi-family residential units can cause home values to fall, others have found no negative impact on single-family home values. The truth is that the impact of apartments on home values depends on a variety of factors, including the quality of the apartments and the overall community.
In North Phoenix, rental communities tend to lean towards luxury, resort-style complexes rather than run-down tenements. It’s interesting to note that the current average rent in 85085 is $2,885 per month. In this sense, high-end apartments may even enhance property values by bringing additional amenities and attracting new businesses to the area. New apartments like the Kalon Luxury Apartments across from the Shops at Norterra provide a live-work-play lifestyle based on their convenient location.
Ultimately, factors such as unkempt neighboring properties, nearby landfills or dumps, or businesses that may create noise or odors tend to have a more significant impact on home values than well-maintained apartment communities. Homeowners can rest assured that their home values will remain stable in the face of new apartment developments that enhance the overall community.
Side note: we share a community with a transfer station, a hospital, a granite quarry, and a shooting range – typically businesses that one could assume would drag home values down. However, as residents of Norterra/ 85085 and 85086, it’s pretty handy having these services nearby. So, when you see that new apartment with fabulous amenities popping up, you can rest easy knowing that your home’s value is more than likely safe.
Shelley Sakala is a local realtor and owner of The Sakala Group Real Estate.