Renters in the Valley absorbed 12,860 new apartment units during last year, including more than 4,300 units in the fourth quarter.
The overall occupancy rate increased during 2000, even with the introduction of 9,456 new apartment units that came onto the market. There had been concerns that overbuilding and lessened demand would push rates lower, but instead apartment occupancy climbed 1.7% for year-end 1999 to year-end 2000, reaching 95.5%.
"Improved apartment occupancy in Phoenix is encouraging, but the market's leasing environment remains extremely competitive," says Greg Willett, editorial director at M/PF Research Inc., a real estate analysis firm. "During the past year, many property owners and managers had to sacrifice rent achievements in order to maintain healthy occupancy at existing communities and spur lease-up at new developments. Rent concessions remain the norm in many neighborhoods."
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