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Market Report

Phoenix Multifamily Market Report

1Q 2021

A Recovering Labor Market and Numerous Relocations Justify Elevated Construction

Phoenix starts 2021 on strong footing. The metro’s economic outlook this year is bolstered by a resilient labor market and positive migration patterns. In the early months of the health crisis, the employment base only contracted by about half the national level as less-stringent regulations permitted more businesses to remain open in some capacity. Numerous outdoor activities, coupled with lower population density, encouraged people to move to the area as well. According to U-Haul, Arizona ranked fifth in the nation in destination one-way truck rentals last year. The Phoenix metro area specifically recorded the estimated net in-migration of over 75,000 residents, the second highest total in 14 years. These demographic tailwinds will continue to fuel record-low apartment vacancy in 2021 and nationally leading effective rent growth.
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