The Phoenix multifamily sector finds itself in a renter's market as 2023 winds to a close.
Phoenix rents have declined by 4.7% year-over-year, according to one recent study by ApartmentList. Rent prices dropped 1% in October, more than the national average of 0.7%. The drop brought the Valley's median rent down to $1,422, roughly 5.1% higher than the national average. Phoenix is the No. 52 most expensive large city in the country, wedged between Jacksonville, Florida, and Norfolk, Virginia, according to ApartmentList.
The decrease in Phoenix rent prices follows a period of rapid price growth in the metro and across the nation. For example, citywide rents have risen a total of 25.6% since the start of the Covid-19 pandemic in March 2020, ApartmentList data shows.
That post-pandemic rent growth has created a "pretty tough period" for renters, said Peter O'Neil, research director for commercial real estate firm Northmarq. That is now shifting, as rents are expected to remain relatively steady in the months to come.
