Rents Still Cooling in Phoenix
Yardi Matrix reports that Phoenix was the most anemic rental market in the country over the past year. Rent slumped 2.8 percent in Phoenix year-over-year from April 2022 to 2023 to an average of $1,608 a month, while nationally, rents decelerated by a positive 3.2 and averaged $1,709. Occupancy year-over-year ending in March in Phoenix was down as well, to 94 percent, and investment slowed to $667 million year-to-date through April. While the price per unit dipped to $241,227, it was still head and shoulders above the national average of $178,275. The numbers can be traced to a building boom that provided a healthier supply along with an easing up of in-migration in this hot market, as well as the fact that a slowdown was in the cards after unprecedented growth. Even though Phoenix’s unemployment remains flat, job openings were up 3.1 percent and the economy continues to diversify, so the area is still seen as a solid market with 1.5 percent rent growth expected in 2023.
