In a time when most apartment markets across the nation are seeing rent growth performances hit historic highs, Phoenix is leading the surge. Effective asking rents in Phoenix were up 26% in the year-ending September, which was the best showing among the nation’s largest 50 apartment markets. Among the largest 150 markets, only two small Florida beach towns – Naples and North Port – performed better in the past year. Phoenix is no stranger to the rent growth spotlight. This market was a pricing leader before the pandemic downturn in 2020. And when operators in most markets resorted to rent cuts, pushing the U.S. average into negative territory starting in May 2020, Phoenix remained in the black. When rent growth returned to the rest of the nation by historic measures in 2021, the increases in Phoenix were stunning. Annual price hikes crossed the 10% threshold in April and then into the 20% zone by July. Today’s growth is the strongest this market has ever seen. In fact, the peak rent growth pace Phoenix achieved before now was back in 2006, when annual price hikes reached 12%.
