Multifamily markets have seen a series of tectonic shifts over the past two years, but growth nationally remains strong as new leaders emerge in key progress indicators.
Our VP of Client Success shared the latest data from two of the Southeast’s fastest growing housing markets: Phoenix and Las Vegas. As demand shifts, these markets have seen incredible growth in the past 90 days alone, and our shared data ecosystem has been able to capture these trends in real time.
Compared to national numbers, occupancy in these markets averaged at a range of 50 – 125 basis points higher. Over the last 90 days, while rent growth was 9.25% nationally, which is a significant overall increase, rent growth in Phoenix and Las Vegas was 9.9% and 10.4%. Some of the key factors driving this growth include low inventory, demand increase due to favorable affordability in these markets, and the need for increased space following the new “work from home” dynamic. Particularly, the demand for 2 and 3 bedroom units in these markets have seen the rent growth exceed that of the national average. This has fuelled the growth of built-to-rent trend as it is meeting tenants’ needs – something they wouldn’t have unless they moved to single family foresale products.
The occupancy growth has leveled off in these markets as operators are testing higher rent. There is also a little slowdown as tenants stay put due to recurring economic factors. Consequently, vacant units are in the lower 3 or 4%, which only signifies that occupancy can probably stay high for longer. The eviction moratorium that expired on 30th July had little impact in these two markets following the strong economic preset for the multifamily communities here.
For more info on the Radix data Phoenix and Las Vegas markets, check out the full episode below.