Phoenix Quietly Triples Affordable Apartment Construction | Here’s What That Really Means

By Scott Bryant | Bryant Real Estate

Affordable housing construction in the U.S. has officially hit a turning point and Phoenix is very much part of that story.

According to a new RentCafe.com analysis using Yardi data, more than 91,000 affordable apartments were completed nationwide in 2024 alone, marking the highest annual total of the past decade. Even more striking: nearly 310,000 affordable units were delivered nationwide between 2020 and 2024, a 73% increase compared to the previous five years.

And here in Metro Phoenix? The growth has been dramatic.

Phoenix by the Numbers

Between 2020 and 2024, developers completed 4,625 affordable apartments across the Phoenix metro area.

That’s:

• Triple the number built pre-pandemic
• A 206% increase over the 2015–2019 period
• Enough to rank Phoenix 19th nationwide for affordable housing construction

To put that in context, Phoenix added 73,758 total apartments during the same five-year window meaning 6.27% of all new apartment construction was income-restricted.

Rapid Growth But Still a Small Share

Here’s where the story gets more nuanced.

While Phoenix’s growth rate in affordable housing is among the fastest in the country, the share of affordable units remains relatively low compared to other major metros.

• New York City and San Francisco allocate roughly one-third of all new apartment construction to affordable housing
• Seattle dedicates about 24%
• Phoenix sits at just 6.27%, one of the lowest shares among the top 20 markets
• Only Dallas ranks lower, at 4.9%

In other words: Phoenix is moving fast, but it’s still playing catch-up.

Why Affordable Housing Is Finally Scaling

This surge didn’t happen by accident.

Several forces converged to push projects across the finish line:

• Low-Income Housing Tax Credits (LIHTC) continue to be the backbone of affordable development
• Income averaging rules gave developers more flexibility while preserving long-term affordability
• American Rescue Plan funding injected billions into state and local housing pipelines
• State-level tax credits helped offset rising construction and financing costs

The result? Projects that had been stalled for years finally penciled.

A National Shift — And Phoenix Is Right in the Middle of It

Nationwide trends show this isn’t a one-off cycle:

• Nearly 14% of all apartments built in 2024 were income-restricted (up from under 9% a decade ago)
• One-third of all affordable units delivered since 2020 came online in 2024 alone
• High-growth metros like San Antonio, Phoenix, and Charlotte are leading the charge in percentage growth

Phoenix ranked second nationwide for fastest growth in affordable apartment construction, trailing only San Antonio.

What This Means for Phoenix Renters, Buyers, and Investors

For renters, this adds real relief, especially for working households squeezed by rising rents.

For buyers, especially entry-level and first-time purchasers, expanded rental supply helps ease upward pressure on the broader housing market.

For investors and developers, the data sends a clear signal: policy-backed affordability is now a permanent lane, not a temporary trend.

The Bottom Line

Phoenix doesn’t always get credit for its progress but tripling affordable apartment construction in five years is no small feat.

That said, the data also makes one thing clear: there’s still plenty of runway. As population growth continues and affordability remains top-of-mind, expect this sector to play an even larger role in Phoenix’s housing future.

If you want to understand how these trends affect your neighborhood, your investment strategy, or your buying power, that’s exactly the conversation we should be having.

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Scott Bryant
Bryant Real Estate
Phoenix, AZ