Despite Strong New Construction Activity, Phoenix MSA Maintains High Occupancy Rates

PHOENIX - July 25, 2016 - PRLog -- ABI Multifamily, a dedicated multifamily brokerage and advisory services firm, is pleased to announce the release of the Phoenix MSA's 2Q 2016 Multifamily Construction Pipeline Report.

"The Phoenix Metro multifamily market delivered approximately 2,645 project based units by the end of 2Q 2016 which represents a 29% increase over 2Q 2015." states Thomas M. Brophy, Director of Research at ABI.  "Additionally, total planned units as of 2Q was 21,081 or 36% increase over 2Q 2015.  Scottsdale led the Metro in total project unit deliveries with 910 units delivered.  Phoenix, although 2^nd in project units delivered, retained top spot for both total units under construction and planned at 4,041 and 6,399 units respectively.  Tempe was 3^rd with 2,806 units under construction and 3,959 units planned."

Mr. Brophy goes on to state, "despite elevated levels of construction the Metro's overall occupancy rate has continued its upward trend nearing 96% which is some 6% above historical norms.  There are multiple forces at play fueling multifamily's construction cycle including:

(1)   Population Growth: Although lower by historical standards which trend 10%+, the Phoenix Metro has grown nearly 7% to 4,474,800 gaining approximately 282,000 persons.

(2)   Renter Households: Even more fundamental than population growth has been the absolute explosion of the 'Renter Household' since 2005.  From 2005 to 2013, Renter Household formation skyrocketed 34%, which if current population estimates hold true we're now closer to 45%, this impacts over 175,000 households representing a combined population of approx. 450,000 persons.

(3)   Job Growth: Especially in Downtown CBD's, i.e. Downtown Phoenix, Old Town Scottsdale, North Tempe and Mesa's Fiesta District, have witnessed 11,000+ job announcements (many of which pay $45,000+ per year), corporate relocations and aggressive courting by economic development officials.

To read/download the report go to http://abimultifamily.com/abinsight-abi-multifamily-phoenix-msa-construction-pipeline-2q-2016/