Phoenix Multi-Family Report – Winter 2021

Phoenix Rent Evolution, click to enlarge

Phoenix’s proximity to denser, more expensive cities had fueled the migration of residents and businesses in the second part of the last cycle, and the pandemic has exacerbated that trend. This has benefited the subway’s multi-family market and increased demand for apartment buildings, which caused the median rent to rise 0.8 percent to $ 1,259 in the three months to November. Even so, the number was below the US $ 1,465 average, which was unchanged for the fourth straight month.

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Phoenix sales volume and number of properties sold, click to enlargePhoenix sales volume and number of properties sold, click to enlarge

Employment growth in the twelve months to September fell by 4.2 percent and was thus well above the national level of -9.3 percent. The unemployment rate fell to 6.2 percent in September after the number of coronavirus cases rose in midsummer. Preliminary data from October indicated an increase to 7.5 percent. Two sectors created new jobs in the year through September, including the metro’s largest – commerce, transportation and utilities – which grew 2.6 percent. The sector benefited from its ability to adapt to the current situation and from the planned expansion of Amazon, which is expected to create 3,000 new jobs before the holiday season.

The development was able to keep pace with 8,218 units delivered in 2020 to November and a further 26,483 units under construction. Meanwhile, nearly $ 4.4 billion in assets traded, a unit price up 12.8 percent year over year to $ 182,669.

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