Apartment Renters are Absorbing the High Number of Units Coming to Market
Nearly 200,000 rental units came online during the first half of 2023, a whopping 51 percent more than in the same span of 2022. Tenants gobbled up almost half of them, which was almost four times as many occupied in the first half of 2022. Demand shows no sign of slowing in the near term, but it could take years to fill all of the new apartments and vacancies are creeping up. In 2023 and 2025, however, Phoenix looks poised to absorb the increase two to three times faster than historic norms. And although expenses continue to rise for owners, “multifamily net operating income is expected to rise slightly above its long-term growth average of 2.3% to 2.7% in 2027, reversing a 7.7% drop from 2022 to 2023.”
