After a big bump late in the year, Phoenix joined Las Vegas as the nation’s leader for apartment rent growth in 2018, according to RealPage, Inc. In the last 12 months, apartment rents have climbed 7.4% in Phoenix, matching the increase in Las Vegas.
By comparison, apartment rents rose an average of 3.3% across the nation in 2018.
Despite the fast-rising rents, Phoenix renters are still filling up apartments at healthy rates. Occupancy across the market is 95.4%. Even considering the high growth rate, Phoenix rents are still affordable at an average of $1,075 compared to the national rate of $1,353.
Phoenix had trailed Las Vegas for rent growth throughout most of 2018. But the 1.3% bump in Phoenix rents during the last three months of the year was enough to close the gap. It also ranked as the nation’s largest rent increase during the fourth quarter, a seasonally slow period for housing markets. Nationally, apartment rents fell 0.6% in the fourth quarter, on average.