Despite the thousands of new apartment units opening for lease across metro Phoenix each quarter, a RentCafe study shows 57.9% of renters aren't budging and instead are renewing their leases.
Phoenix's occupancy rate dropped to 92.4% at the start of the summer rental season, down from 93.5% last year, according to the report on the nation's hottest rental markets. The Phoenix metro saw its apartment unit supply grow by 1.18% at the start of the rental season, RentCafe found.
Occupancy actually is holding up better than most forecasters expected because demand is strong, said Peter O'Neil, research director for Northmarq. More than 40,000 units currently are under construction in metro Phoenix, he added.
"Eventually, that number will tick lower as properties are completed," O'Neil said. "Multifamily permitting and starts have slowed in recent quarters."
