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Valley's Multifamily Market Makes Q2 Gain

PHOENIX-The good news is properties with 100 units or more made modest gains for the second consecutive quarter. Occupancy registered 90.5%, a 0.3% climb from a year ago, while rent rose $3 for an average of $714 per month.

By Beverly Ford | Updated on July 16, 2003

PHOENIX-Valley multifamily owners saw apartment occupancy levels and rental rates rise during the second quarter, reflecting a modest upward trend that indicates the housing market may be on the verge of stabilizing.

According to a report by multifamily housing specialist RealFacts, Phoenix was the only market in the Western US to show a positive increase in both average rental and occupancy rates in March for complexes with 100 or more units. A modest recovery in the second quarter allowed other markets in southern California and Greater Houston to share that distinction.

“For two quarters in a row, occupancy and rents have gone up in Phoenix, which is good news for a beleaguered market, but the occupancy rate is still low,” Caroline Latham, owner of RealFacts tells GlobeSt.com. “At around 90%, it still has some distance to go before there’s real pressure on rents. When occupancy gets to 95%, you can be pretty certain that competition for vacant apartments will be stiff enough to permit landlords to increase their prices.” Latham predicts occupancy rates and rents could make larger gains as soon as 2004 due to a slowdown in construction projected for the next three years.

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