Phoenix Multifamily Report – Winter 2019
- Mar 25, 2019
A diversified economy, coupled with a business-friendly environment and a skilled workforce, is driving employment and population gains in Phoenix, while boosting multifamily demand.
The metro added 86,800 jobs in the year ending in November, a 3.6 percent increase, well above the 2.1 percent U.S. average. Growth was led by professional and business services (19,700 jobs), followed by construction (17,600 jobs), and education and health services (12,900 jobs). This trend will likely continue as more companies expand in Phoenix, especially in the East Valley. In Gilbert, Deloitte announced the creation of 2,500 high-wage technology jobs, while Chandler could soon see the addition of 1,200 Wells Fargo Co. jobs as well as 2,500 Allstate Insurance Co. positions. Voya Financial also announced an expansion and 1,000 new jobs, in addition to the 200 employees who work in the company’s Scottsdale office.
Attracted by the market’s strong fundamentals, investors closed $5.9 billion in multifamily sales in 2018, a new cycle peak. Developers also marked a high point with the delivery of 8,162 units, while occupancy climbed 50 basis points year-over-year to 95.3 percent as of December, indicating a rapid absorption of new product. In 2019, intense construction activity is expected to continue, leading rent growth to a more moderate 3.9 percent.