Phoenix MF Shows “Extreme” Variances by Submarket

PHOENIX-As a whole, the multifamily market here is in recovery mode, but the variance in neighborhood-level performance is “as extreme as you’ll see anywhere across the country,” according to Greg Willett, vice president of research & analysis for MPF Research.

The performance differential is illustrated by rent growth, Willett notes. Most of metro Phoenix’s rent growth is occurring in the upscale east side suburbs, where occupancy is at or approaching essentially full levels. “For those areas it certainly makes sense to start building again, as long as land was acquired at prices that make total development costs feasible,” he tells GlobeSt.com, adding that Chandler’s occupancy is 95.6%, and the rate is above 94% throughout Scottsdale, Tempe and Gilbert.