One source of information we use to track and forecast our apartment market is Yardi Matrix. This was formerly Pierce-Eislen and has now expanded to cover the US. In a recent report by Yardi, they covered apartment absorption across the US. Absorption is the net change in occupied units. On a National level, absorption dropped 12.0%, but in Phoenix, we had a positive 3.2%. Only Denver, Inland Empire and Charlotte had slightly higher numbers! The strong absorption for Metro Phoenix is also the reason for our decrease in vacancy – now at an historic 4.5%. Vacancy and absorption obviously go hand-in-hand.
Another significant point made in the Yardi report was the fact that our average rent ($1,266), as of year-end, was less than 15 major metros, including: San Diego, Sacramento, Inland Empire, San Jose and San Francisco. Part of our net positive population, especially from California, is being driven by our affordability. It also shows that our rents have room to increase as well as apartment values.
Read the press release Multifamily Absorption Surprisingly Strong in 2020, Says Yardi Matrix
Download the Matrix Bulletin-Absorption Paper-March 2021