Peak 16 is located near the Camelback Corridor in uptown Phoenix. Construction started on the luxury apartments in November. (Photo courtesy of VanTrust Real Estate)
Report: Average Phoenix rents reach new high
Phoenix’s average rent reached a new high this past February at $976 compared to 2016’s February average rent at $935, according to Axiometrics an apartment and student housing analytics firm.
The Phoenix annual effective rent growth for February is at 4.4 percent, with a 94.6 percent occupancy rate in Phoenix, according to the report. The average rent increased $8 in February, the largest month-over-month change in the Phoenix market since April 2016.
Rent growth has fallen in the Phoenix area between January and February by .7 percent, according to Axiometrics.
The national average rent in February is $1,285, with occupancy at 94.5 percent and rent growth at 2.3 percent, according to the report.
“Job growth rebounded to 2.4 percent for the 12 months ending in January, and is predicted to stay near 2 percent this year,” said Jay Denton, senior vice president of analytics for Axiometrics. “That steady level of demand should keep market performance strong, though new supply coming in later this year will cause growth to slow.”
Axiometrics forecasts the Phoenix market to see the average 2017 annual effective rent growth at 3.5 percent in the Phoenix market.
The top five Phoenix submarkets for annual effective rent growth in February 2017:
- Central Phoenix North: 8.1 percent
- Glendale South: 8.1 percent
- Maryvale: 7.3 percent
- Sunnyslope: 7.1 percent
- South Mesa: 7 percent