By Jay Parsons | RealPage
What’s going on in Phoenix? No other apartment market is decelerating right now at the pace we’re seeing in Phoenix – which not long ago consistently ranked among the national leaders in rent growth. But a lot has changed so far in 2022.
Here are four jarring statistics from Phoenix:
One: Apartment occupancy in Phoenix has fallen in each of the past five months and is now at the lowest levels since 2017 at 94.4%, according to data from RealPage Market Analytics. Occupancy dropped at least 220 basis points since February 2022 in all 23 Phoenix submarkets and in all asset classes. Phoenix occupancy now ranks below the U.S. average by 166 basis points, the largest gap since 2014.
Two: In July 2021, 56% of Phoenix apartment renters with an expiring lease chose to renew. In July 2022, that number plunged to 47.2%. Both the year-over-year decline and the resulting rate ranked as the lowest in the nation.
“Some multifamily operators report that in-migration has dramatically slowed in 2022, while at the same time, some who relocated to Phoenix in 2020-2021 have since left.”
