Phoenix 4Q23 Multifamily Market Insights Report: Deliveries picking up, likely to accelerate in 2024

Highlights: 

• An active pace of new apartment construction dragged on property performance in 2023, despite healthy renter demand for units. With the development pipeline totaling more than 42,700 units under construction, supplyside pressures will persist through 2024.
• Vacancy pushed higher throughout much of 2023; during the fourth quarter, the rate rose 40 basis points to 7.4%. For the full year, vacancy rose 100 basis points.
• After mostly holding steady in the first half, rents retreated in the final six months of 2023. Rents ended the year at $1,575 per month, down 2.5% from one year earlier.
• The investment market picked up slightly during the fourth quarter, but transaction volumes were down 68% from 2022 to 2023. Prices ticked lower to $270,300 per unit, while cap rates averaged 5.25%.

Read the report, or engage with our Phoenix office to learn more.