IRR-Phoenix Mid-Year Viewpoint 2015 Local Market Report - Multifamily
The Phoenix multi-family market is in the midst of an expansion period. At the end of 2014, there were 264, 916 apartment units in the metropolitan area. As of the first quarter of 2015, there were 3,921 units in 16 properties which had been completed within the past 12 months and 13,321 units under construction in 56 properties. In addition, there were 62 properties in the planning stages with a total of 15,947 units. Absorption for these new units as been strong as the valley saw nominal construction in 2011 and 2012 while the market was slowly starting to recover.
However, this pent-up demand may be satisfied quickly and vacancy rates could start to rise as more units come online. The local housing market has remained in the doldrums, but signs in the second quarter of 2015 show it heating up. If this happens, tenants could opt for a home and leave these new, highly amenitized apartment communities, scrambling for tenants.
Class B communities have remained strong in most areas, however, there are certain isolated pockets in the metropolitan area where Class B units are selling on a "price per pound basis in the $25,000 to $29,000 per unit range. However, overall, Class B is performing well as some tenants are being priced out of the Class A market.
Download the full version PDF of this Local Market Report below to see the charts, graphs, and tables not included above.
IRR Mid-Year Viewpoint 2015 comprises a National Overview report and 300+ two-page Local Market Reports for all key property types as well as additional resources, including metrics methodology, graphs, and tables; these free reports may be downloaded from IRR’s site here.