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Updated almost 2 years ago,
Q1 Phoenix, AZ Market Update
In the first quarter of 2023, the average rent for a one-bedroom apartment in Phoenix was $1,398 per month, representing a 5.4% increase from the previous year. Additionally, the vacancy rate for multifamily properties in Phoenix remained low at just 4.1%, indicating continued high demand for rental units.
One of the key drivers of the multifamily market in Phoenix is the city's booming economy. Over the past few years, Phoenix has seen significant growth in industries such as technology, healthcare, and finance, which has led to an influx of high-paying jobs and a growing population. In fact, Phoenix was recently named one of the top 10 cities in the U.S. for job growth and has been attracting both young professionals and retirees.
As the population continues to grow, demand for rental properties is expected to remain high. This has led to an increase in new multifamily construction projects throughout the city, with developers looking to meet the demand for new and updated rental properties.
In addition to new construction, there has also been a trend towards renovating and updating existing multifamily properties in Phoenix. Many landlords are investing in upgrades to their properties in order to attract higher-paying tenants and stay competitive in the market.
Overall, the multifamily market in Phoenix, Arizona is expected to continue to grow and remain strong in the coming years. With a growing population and strong job market, demand for rental properties is likely to remain high, leading to continued growth in rents and low vacancy rates.
Leading Performance Indicators as of Week of March 12 (Phoenix MSA)
Occupancy: 93.6% (+.4% last 30 days)
Traffic Per Week: 7.5 (+.2 last 30 days)
Leases Per Week: 2.1 (+.1 last 30 days)
Concessions: $20 (+5.3% last 30 days)