Multifamily prices are surging in Phoenix, according to research from Colliers International. For the last several years, Phoenix multifamily sales have been largely driven by value-add deals. In the second quarter of this year, there was a shift with more new construction, class-A assets trading hands. As a result, the average price per unit has increased from $100,000 in 2017 to $164,000 in the second quarter.
“We have had this huge increase in pricing. Part of that was because we have built a lot of new complexes in the last few years, and those complexes have sold. We are building a lot of very expensive class-A apartment buildings,” Pete O'Neil, research director in greater Phoenix for Colliers International, tells GlobeSt.com. “The median price in the second quarter was $164,000 per unit and year to date we are up to $131,000 per unit. Last year, we were at $100,000 per unit. Activity has accelerated in the second quarter by about 10% and we are seeing a change in the mix of the product that is selling. This is a good indicator for our market.”
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