Phoenix’s Soaring Multifamily Rent Growth May Prove Unsustainable in 2022

Phoenix and a host of other markets perhaps have seen once-in-a-lifetime multifamily rent growth. Landlords who stuck it out since the onset of the pandemic have been handsomely rewarded with rents increasing by more than 20% annually.

But pushing rents may be more challenging moving forward as incomes fail to keep pace in one of the more development-heavy markets in the country.

Nearly 30,000 apartment units are in Phoenix’s pipeline, about half of which is slated to deliver in 2022. Both these numbers are all-time highs, and any drop off in demand would put upward pressure on the vacancy rate.

Apartment demand in the Valley of the Sun is driven by in-migration, primarily from Southern California. This trend has contributed to Phoenix becoming one of the fastest-growing population centers in the nation. If the steady inflow of new residents continues, supply pressure may likely be mitigated enough to keep the vacancy rate stable.

About Real Estate Intelligent Marketing (REIM):
REI Marketing is an innovative Real Estate Marketing Company that offers distinctive real estate services to developers and multifamily investors.  We are a vibrant, dedicated team of industry professionals with international experience in marketing and multifamily investment.