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Market Reporting that Matters

2 Years of Increased Rent for Phoenix Apartments

Job Growth Increases Demand

By Dave Sorter | Wednesday, August 31, 2016

Average rent at Phoenix apartments increased in July for the 22rd month out of the past 23, as the metro’s emergence into the elite of U.S. apartment markets continues, according to Axiometrics.

Two years of almost nothing but increases in average rent level is just about unheard of, given seasonal cycles and volatility in most metros. But the robust job growth has increased the demand to absorb the manageable new supply.

Phoenix employers added 67,300 jobs in the 12 months ending in June, while developers are expected to deliver 6,697 new units to the market this year and another 4,421 in 2017.

In researching Phoenix as compared to the national market, Axiometrics reported data as follows:

The rolling two-year data for Phoenix signal moderate slowing of effective rent growth since its cyclical peak in May 2016.

Of the 18 Phoenix submarkets with more than 1,000 units, the following areas comprise the top five for annual effective rent growth in July 2016.

Dave Sorter

Dave Sorter

Journalist

Dave Sorter is an award-winning journalist who spent 30 years as a newspaper reporter and editor before joining Axiometrics. He oversees all Axio blogs and newsletters and serves as senior editor of all Axio publications.

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