Phoenix 3Q23 Multifamily Market Insights Report: Investment activity accelerates, still lags earlier levels

Highlights:

Image

• Construction has been elevated throughout 2023 in the Phoenix multifamily market, a trend that continued in the third quarter. Renter demand has gained momentum year to date, offsetting some of the supply-side pressures in the region.
• Vacancy rose 30 basis points in the third quarter, duplicating the increase that occurred during the second quarter. The rate has increased 120 basis points in the past 12 months, ending the third quarter at 7%.
• Rents dipped in recent months, dropping to $1,607 per month. Average rents in the Greater Phoenix market are down 2.7% year over year.
• Investment activity to this point in 2023 has been limited, but transactions picked up in recent months, particularly among newer assets. Year to date, the median price reached $264,700 per unit.

Read the report, or contact our Phoenix office to learn more.