According to The Newmark Opportunity Index: Identifying Commercial Real Estate Opportunities and Challenges in Major U.S. Markets, a new white paper released recently by Newmark, Phoenix is one of the five hottest national real estate markets.
The index assesses and ranks various geographic markets through property-specific metrics, providing insights on how to gauge potential opportunities and challenges among various asset classes poised for growth in these areas. When compared to other national markets, the report ranks Phoenix fourth overall.
Takeaways for Phoenix’s real estate market presented in the index include:
• Phoenix ranked first overall when using hospitality metrics, third overall when using multifamily metrics, and fourth overall when using economic metrics.
• Phoenix saw the strongest change in 2020 multifamily sales volume when compared to the previous five year annual average with a 13.72% increase.
• Phoenix saw the strongest change in effective multifamily rental rates between Q1 2020 and Q 2021 with a 5.40% increase.
• Phoenix saw the strongest change in unemployment rates between the February 2020 baseline and “the nadir of the COVID downturn” with a -10.87% change.
• Phoenix was one of the areas least impacted by pandemic restrictions, allowing it to rank second across the change in mobility metrics and aiding a quicker economic recovery – employment was down only 3.1% from the region’s pre-pandemic level as of Feb 2021.
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