Phoenix has Surpassed Core Markets such as New York and Los Angeles

Phoenix has surpassed core markets such as New York and Los Angeles in terms of investment volume, becoming one of the top markets in the country. In the past 12 months, approximately $17.8 billion worth of apartments has traded hands in Phoenix. In 2021, sales volume reached an all-time high and ranked second in the United States, behind Atlanta.

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Phoenix remains one of the top markets in the country for rent growth as rents continue to rise. In the past five years, rent increases have consistently outpaced the national average, but Phoenix remains an affordable market in the Western region.

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Population growth, economic diversification, relative affordability, and business-friendly regulation have strengthened Phoenix's value proposition. There are minimal corporate taxes, access to national and international markets is provided by the local infrastructure, and the City's numerous colleges and universities provide businesses with an educated talent pool. Consequently, dozens of companies have relocated to Phoenix. With digital technology, financial services, aerospace, defense, and electronics, the City's capital investment is staggering, and job opportunities have skyrocketed, attracting tens of thousands of ambitious workers.

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The price of single-family homes has skyrocketed despite the robust population growth over the past several years. In recent years, Phoenix has been a leading market for home price appreciation. This low inventory and unrelenting price hikes continue to compel some would-be homeowners to remain renters, resulting in record-low vacancy rates and accelerated rent growth. Less than 10% of communities offer discounts, a decrease from 25% a year ago.

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Even before the pandemic, fundamentals were strong and supported by some of the country's strongest employment and household growth, which fueled demand and resulted in a low inventory of single-family homes. In 2021, net absorption reached a record high and vastly outpaced new supply.

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1 Information provided by CoStar.

2 Information provided by Axiometrics.