Apartment Market and Sales Insights
History: Housing demand started increasing in 2016 – driving rents and apt. values up. As a result of our annual rental rate growing to 18.8%, developers increased new construction – almost doubling previous annual completions to 16,016 units in 2022, and this has continued. The increased supply has created higher vacancy rates and driven the annual rental rate into the negative.
The GOOD NEWS is that once the 2024 and 2025 new apt. completions are absorbed, the projected new apt construction will be significantly reduced. With our very strong economics, available energy, plenty of water, huge investments and proximity to California, our projected increased population will create a critical housing supply shortage. In fact, Metro Phoenix has the future potential to have one of the strongest increases in apt. values in the US.
With interest rates jumping in mid-2022, the number of apt. sales has been significantly less in 2023, 2024 and YTD. With the 10 Yr T-bills and lending rates showing no indication of declining, loans adjusting to market rates are providing opportunities for investors. See our Q1 2025 Apt. Owner’s Newsletter – link below.
Note that we also provide Interactive Maps and Downloadable Lists for currently advertised Apts For Sale, details of Prior Apt Sales and the New Apt Construction Pipeline. Use the Construction button below to show the location of the new projects. IT’S NOT Central Phoenix!