Economic growth underpins strong apartment absorption in Phoenix, AZ.
Corporate expansions continue to drive in-migration as companies and job seekers seek refuge from the high costs found in other major metros.
Allstate Insurance is building a new corporate campus that will provide employment for approximately 2,500 people. Other companies like Voya Financial and Nationwide Insurance have brought new jobs to Phoenix, supporting the second-highest net migration level in the country last year. Strong in-migration, when paired with job growth at 3.3 percent over the past four quarters, should prove favorable for household formation in the market.
The increased rental demand tightened vacancy and bolstered one of the nation’s best annual rent growths.
Marcus & Millichap 3rd Quarter report 2019