By ABI Family | AZBEX
ABI Multifamily has published its Q1 2020 Phoenix Multifamily Quarterly Report. And while the start of 2020 was strong, with rent growth, healthy occupancy rates, lower cost of living, and high renter demand all pointing to another extraordinary year, the future has yet to tell how the multifamily industry will be impacted by the COVID-19 global pandemic. With a development pipeline full of planned and under-construction properties, the timeline for the completion of these projects is unclear.
The real effects will be highlighted in Q2 2020 data. However, it is expected the Coronavirus Recession will be shaped more like a “V” or a small “U” rather than an “L,” with a path to normality optimistically expected to return around the start of 2021.
Phoenix Market Metrics
- Q1 2020 witnessed a healthy start in the first two months with a poor finish in the month of March as a result of the initial effects of COVID-19.
- For 10-99-unit properties, Q1 saw a transaction volume of approximately $186M, which represented a 54.3 percent year-over-year increase from Q1 2019. In the 100+ unit category, Q1 brought in $1.21B, down