Phoenix rents rose 6.3 percent year-over-year in the 3rd quarter of 2018, following a comparatively moderate increase of 4.8 percent in the 2nd quarter, ranking the city’s performance third best among the nation’s largest markets, and well ahead of the 4 percent average price increase the Phoenix area has seen throughout the current economic cycle.
According to RealPage, a leading global provider of software and data analytics for the real estate industry, the standout was the Class A stock, which built upon the already strong price increases Phoenix rentals have seen recently, despite record competition levels. Submarkets, where rent growth jumped significantly in the 3rd quarter, included East Mesa, South Phoenix and Deer Valley.
The nation’s apartment market saw a reversal in rent growth trends in the 3rd quarter of 2018, as previously slowing price positioning suddenly rose again. While nearly all top 50 markets picked up some momentum in recent months, a handful progressed at an especially solid pace, according to RealPage,
U.S. apartment rental rates climbed 3.0 percent year-over-year as of the 3rd quarter, notably above the 2.5 percent increase from the 2nd quarter. This was the first time in roughly four years that rent growth momentum took such a significant upward turn of 50 basis points (bps) or more.
Phoenix rent growth