Source: AZBex / Arizona Builder’s Exchange
In ABI Multifamily’s Q1 2018 market analysis for the Phoenix MSA, Research Director Thomas Brophy writes, “We are living through a tectonic demographic shift pushing us further and further into a more renter-centric society, which started in earnest in 2011/12…. I’ll make no assertions whether this shift is good or bad, but make no mistake that it is happening.”
Brophy cites national estimates from the U.S. Census Bureau that rental households have increased 8 percent since 2000. In the Phoenix metro, those households have increased by an astounding 21 percent from 2000-2016. Renter populations were up 31 percent in Glendale, 21 in Tempe, 20 in Phoenix, 19 in Mesa and 12 percent in Scottsdale.
Year-over-year multifamily property sales have been robust. In the Phoenix area, sales of properties with 10 or more units increased 89 percent. Seventy-five transactions totaling $1.48B and making up of nearly 9,800 units.
Renter Household Percentage in Phoenix is estimated at 37.8 percent, based off Census estimates. “Given Phoenix’s higher than historical occupancy rates, as well as, significant increases in rentership, both at the younger and older end of the demographics spectrum, actual rentership levels should increase to around 40 percent by 2020 if current housing trends hold,” Brophy predicts.
Image source: http://equalityarizona.org/