Apartment Market Chills for First Time in Years

PHOENIX-The Phoenix multifamily market has hit its peak and is cooling off, according to a new survey by the Phoenix office of Marcus & Millichap.

“After years of explosive growth in the Phoenix area, the apartment market has begun to cool,” says David Wetta, the regional manager of Marcus & Millichap. “Although Phoenix may have experienced a crescendo in terms of vacancy and rental growth last year, strong market fundamentals will keep demand elevated.”

One of the key indicators is that vacancy rates are inching upward all over the Valley. At the start of the year, the overall vacancy rate was 7.4% and has climbed nearly a half percentage point through the first half of the year.