Colliers
- The Greater Phoenix multifamily market continued to strengthen in the third quarter, with vacancy dipping below 6 percent and rents rising at a healthy pace. The outlook for the remainder of this year and 2016 remains quite strong.
- Vacancy is being driven by healthy renter demand for units. This net absorption is being fueled by an expanding employment market and a homeownership rate that is well below the pre-recession peak. Employment growth is forecast to accelerate in 2016, which should support continued renter demand for apartments.
- Average asking rents ended the third quarter at $867 per month, 7.4 percent higher than one year ago. Every submarket in Greater Phoenix has recorded year-over-year rent increases.
- Sales velocity accelerated by 7 percent in the third quarter, and activity for 2015 is on pace to reach the highest total since 2006-2007.
- Prices rose and cap rates compressed during the third quarter. With property revenues strengthening as rents rise and vacancies tighten, prices have followed suit.
Click here to read the full Q3 2015 Multifamily Report.
