Apartment Market and Sales Insights
The Forte Apartments (see above) ran into more trouble than typical since the low cap rate (3.75%) purchase in 2022 used very high leverage with only $340,739 (6.38%) down with the balance via a private lender.
We continue to forecast that we are near the bottom of the Apartment cycle. As the new construction pipeline declines and the huge amount of current and projected investment monies start creating JOBS – population and housing demand will increase. To support that we are in the troughs of the apartment cycle – here’s some data from Yardi Matrix (October 2025 report).
- Advertised asking rents slid 0.1% over the past three months (T-3).
- Year over Year (YoY) Phoenix posted the 3rd weakest rent performance of their top 30 metros (down 2.8%).
- YoY occupancy dropped 20 basis points (93.1%).
Positive Growth – Metro Phoenix is well-positioned to have significant growth in our very diversified economy in addition to the huge microchip, AI and robotic investments. For example, industrial (datacenters), healthcare and education (K-12) are experiencing an upward trend with robust growth expected in 2026.