Phoenix Q1 Market Report: Sales Activity Spikes as Rents Continue to Rise
Highlights:
- The Greater Phoenix multifamily market started 2019 with a continuation of the prevailing trends from 2018. Renter demand for apartments was strong, construction continued at a fairly steady pace, and rents posted another quarter of sizeable increases.
- Vacancy fell 40 basis points during the first quarter, reaching 5.3 percent. The rate is unchanged from one year ago.
- Asking rents rose by nearly 3 percent in the first quarter, and at $1,105 per month, are up 9.5 percent year over year. The Phoenix metro area is forecast to lead the country in rent growth in 2019.
- Developers delivered nearly 2,000 apartment units during the first quarter, and approximately 10,500 additional units are currently under construction.
- Apartment property sales accelerated in the first quarter, and activity is well ahead of last year’s pace. The median price pushed higher to start the year, and the average cap rate has compressed to approximately 5 percent.
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