Thirty years ago, this 730-acre swath of Arizona land was virgin desert, the vast blue sky interrupted only by towering saguaro cactuses.

Today the cactuses have been replaced by construction cranes in what is now a bustling area known as Kierland. On the border of Scottsdale and Phoenix, the area’s urban feel, with walkable access to restaurants and bars, is part of what prompted Morgane Baldwin to move there after graduating from college two years ago. She and her boyfriend pay about $2,300 a month for a one-bedroom apartment...