Positive demographic trends and one of the most active economies in the U.S. continue to support growth in the metro’s multifamily market
By Alex Girda | Multi-Housing News
With rent growth rebounding to nearly double the national rate, Phoenix is experiencing a sudden sprint in rent improvement, as positive demographic trends and one of the most active economies in the U.S. prop up the metro’s multifamily market. Rents were up 5.4 percent year-over-year through September, to an average of $1,085. Despite high completion rates, average occupancy in stabilized properties actually rose to 95.2 percent in August, up 40 basis points year-over-year.
Employment growth continued at an elevated rate, with 61,300 jobs added in the 12 months ending in July. Improvement was widespread, with all but one sector recording net job gains. Construction added 12,900 positions, as the sector continued to benefit from an expanding multifamily pipeline, with 15,700 units underway as of September. The metro’s office pipeline also remains strong, as more than 4.2 million square feet of space was underway as of October.