Phoenix—Deco Communities has opened two properties in Arizona—one in Phoenix, the other in Tempe. They are the latest apartment communities that the company is branding Cabana Modern Apartment Homes; it has already opened two others in greater Phoenix and one in Las Vegas. Each is located in a pedestrian-friendly urban environment, where Deco hopes to attract Gen Y renters.
The 180-unit Cabana at the Pointe is in the 16th Street Corridor in North Central Phoenix, with rental rates starting at $574 per month for a one-bedroom unit. The 167-unit Cabana on Mill follows up on Deco’s first Tempe project, Cabana on McClintock. According to Deco, the property will appeal to post-college professionals, with rental rates start at $699 per month for a one-bedroom unit. Amenities at both properties include a hotel-style leasing center, “vintage-inspired” laundry facilities known as “Sudzy’s,” a bike storage area, pet walks, fitness centers, and pools with resort-style furniture.
“Overall, studies have shown that Generation Y has the same desire for home ownership as their parents did,” Deco Communities partner Pat Watts tells MHN. “They may rent for longer than their parents did for a couple of reasons. First, because Gen Y is forming households later than their parents and having children later. Second, Gen Y will take longer to save for a down payment due to slow economic recovery and tightened credit requirements.”
When Gen Y does purchase a home, their demand for location and type of home will be significantly different than their parents, Watts adds. “Gen Y is less interested in the age of the home than they are in the location and authenticity of the home,” she says. “Access to light-rail and other public transportation, as well as proximity to restaurants, shops and entertainment, are of primary importance. Gen X wanted a new home in the suburbs, but Gen Y wants an older home in an urban location.”
The properties also plan to take advantage of economic growth in the area. In 2013 alone, metro Phoenix is on track to experience a 3.5 percent growth in employment, bringing about 65,000 new positions to region.