Smaller Developers Turn to Infill Opportunities in Phoenix

As greater Phoenix grows, boutique home builders are targeting small parcels of land for high-density infill developments.

The compact infill developments offer homebuyers a central location closer to work than the sprawling developments preferred by larger developers, while allowing builders to maximize space efficiency, the Phoenix Business Journal reported.

Encanto Living and Tidestone Partners recently launched Encanto at Bell Park, a 35-home development on 2.5 acres at 12th Street and Bell Road in Phoenix.

The homes, priced in the $400,000s, range from 1,323 to 1,912 square feet. Keith Mishkin, CEO of Cambridge Properties and listing agent for the project, noted that infill complexes generally perform well, often priced comparably to existing homes.

Despite the challenges of finding and rezoning suitable land, developers see strong returns.

According to Mishkin, metro Phoenix has around 10 to 15 such projects at any time, featuring densities of eight to 15 units per acre. The appeal lies in proximity to employment hubs, contrasting with large-scale developments on the city’s outskirts.

Larger home builders typically prefer expansive sites, as the effort required to develop a 100-lot subdivision is similar to a smaller 10- to 40-lot community, said Mishkin. This gap creates opportunities for niche builders.

Greg Vogel, CEO of Land Advisors Organization, tracks about 80 metro Phoenix sites with active zoning cases suited for boutique projects. Many developers are seeking higher densities, transitioning from lower-density zoning to four to 15 units per acre.

Luxury infill projects are also gaining traction.

Meisterwerk Fine Homes is constructing 100 Northern, a 17-home community on a 4-acre site in north Phoenix. Homes range from 2,300 to 3,700 square feet, priced between $1.2 million and $1.995 million.

Founder Alexander de Faria e Castro highlighted the lengthy city approval process, which ties up significant capital before construction begins.

Camelot Homes, a Scottsdale-based luxury builder, is embracing the trend with Viridian, an eight-home community on a 1.5-acre site at 15th Street and Bethany Home Road. Those modern homes, featuring butterfly roofs, start at $1.5 million.

Additional projects are underway near 15th and Glendale avenues, Seventh Street and Palm Lane, and Central and Missouri avenues.

The boutique home building trend emerges as national builders face a 12 percent decline in year-over-year sales, according to a Zonda report.

— Dana Bartholomew