The multifamily housing sector in Phoenix was marked by decreasing concessions and higher rents, GlobeSt.com reports.
According to the source, experts predict the trend will continue while ground is broken for new construction of additional apartment rentals. About 5,000 units are currently in the pipeline at the beginning of a year in which improving operations and sales are predicted.
Experts tell the source that a number of factors are responsible for the change, primarily the high interest in renting. Demand has pushed rents up to the point where they are expected to remian stable, according to executive Jack Hannum, with net effective rents climbing about 12 percent since lows reached in 2009. This is particularly true in higher-end properties.
According to Hannum, the current conditions represent a significant opportunity for rental owners, and the slow return of the homeownership market is contributing to that situation. Value-add investment is playing a substantial part, pushing rents up by reasonable amounts.
Investors in the area may wish to hire rental property management companies to operate their assets, whether they are looking to join in the new construction or pursue value-add deals.