Phoenix Q1 Multifamily Market Insights: Investment Activity in 1Q Ahead of 2021 Pace


  • Apartment properties posted mixed performance in the first quarter with rents rising, investment activity elevated, but a rise in vacancy. The mixed conditions followed a year of unprecedented growth in 2021, and the market is forecast to remain healthy throughout the remainder of this year.
  • After vacancy trended lower throughout nearly all of 2020 and 2021, the rate has risen in each of the past two quarters. During the first quarter of this year, vacancy rose 50 basis points to 4.8 percent. Year over year, vacancy is up 30 basis points.
  • Rents in Greater Phoenix continue to trend higher, increasing 2.5 percent in the first quarter to $1,624 per month. In the past 12 months, rents have spiked 27 percent, one of the most rapid increases of any market in the country.
  • The investment market remained active during the first quarter. More properties sold in the first three months of this year than during the same period in 2021. Prices continue to push higher at a rapid clip, with the median price reaching $270,800 per unit. Cap rates have begun to level off, averaging 3.25 percent in the first quarter.

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