Phoenix Multifamily Market Stats

4 Replies

Interesting stats on the Greater Phoenix Multifamily Market by NorthMarq for those thinking about investing here.

- Vacancy ended 2019 at 5.6%

- Asking Rents increased 9.4% in 2019, ending up at $1,175/month

- Median multifamily price spiked at $138,600 per door, approaching $150,000 per door at the end of the year

- Cap rates averaged 5% in 2019

- The number of properties sold in 2019 was the highest annual total since 2006

*Stats from NorthMarq's Q4 2019 Greater Phoenix Market Report

I would assume that vacancy number is physical?

How about new units coming online this year, is that expected to have any significant impact?

@Taylor L.

Hi Taylor,

Not sure what you mean by 'physical'. There is high demand in the Phoenix area so we have an overall low vacancy rate and increasing rents. In some cities like Gilbert and Surprise, rent on a 2-bed apartment (ApartmentList.com) is higher than rent on a 3-bed, 2 bath single family home (Rentometer.com).

The incoming under-contruction units help but they will push the average rents up even higher (because new build) and they simply aren't enough to keep up with demand.

Originally posted by @Amber Boskers :

@Taylor L.

Hi Taylor,

Not sure what you mean by 'physical'. There is high demand in the Phoenix area so we have an overall low vacancy rate and increasing rents. In some cities like Gilbert and Surprise, rent on a 2-bed apartment (ApartmentList.com) is higher than rent on a 3-bed, 2 bath single family home (Rentometer.com).

The incoming under-contruction units help but they will push the average rents up even higher (because new build) and they simply aren't enough to keep up with demand.

 Physical vacancy it the percentage of units with nobody living in them. Economic vacancy is the number of units that are not being paid for, but may have someone living in them.