AIM Insight | September 2018

Phoenix Multi-Family Market Report

Welcome to AIM Insight!  An opportunity for us to keep you updated on some of our latest projects
as well as current ideas, tips and trends within the multi-family property industry.

Recent Vacancy Trends for Owners & Buyers

Phoenix Multi-Family Market September 2018

Single Family Homes. The median cost of a single family home in Arizona continues to increase as of September 1, 2018.  The average sold price is $259,500 compared to $237,500 a year ago.  That’s a 9% increase year over year.

Population Change.Arizona has been growing for many years. The change of population to the Phoenix metro area starting 2011 and ending 2015 was estimated at 212,000 in 4 years.  Where do migrating people come from?  13.3% come from California.  12.6% come from non-metro areas of the U.S.  11% move from other locations in Arizona.  4.4% move from Asia.  Texas and Washington are 4.2% and 3.6% respectively.

Vacancy Rates.  Apartments are, on average, in the Phoenix area are seeing steady occupancy rates.  Second quarter of 2018 the vacancy rate average is 5.4% and compares to 5.4% a year ago.
Rental Rates.  Rent is decreasing compared to a year ago.  The average rate of increase is about 4.3% compared to 4.5% second quarter 2017.

Labor Costs. There is a construction workforce shortage and makes it difficult to build units at a rapid pace.  In January of 2008 there were 207,000 construction workers. There were 160,200 workers as of July 2018, and 151,200 January 2018 according to the U.S. Bureau of Labor Statistics.  That’s a 2.9% increase Year to July.  January 2018 Average hourly earnings for construction was $25.60 while in July the Average was $26.40.

Employment. Arizona unemployment rate, seasonally adjusted was 4.6% in July 2018.  Phoenix area unemployment rate for the same period was 4.3% according to the U.S. Bureau of Labor Statistics.  This continues to indicate a strong economy in Arizona as well as the Phoenix area. The Phoenix area is seeing a shortage of skilled and non-skilled workers and causing a migration from other locations in the U.S.  This is good news for housing and multifamily.

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Multi-Family/Commercial Property Management Services

By Arizona Investment & Management LLC

Arizona Investment & Management is much like larger companies from the point of having access to technology such as CoStar®, LoopNet® and even MLS®.  Marketing a property is accomplished using the same tools and methods.  Our strength and difference is that AIM is focused on each client and their needs verses the needs of national executives or abstract goals.

For buyers, AIM has extensive knowledge and understanding of the Phoenix metro area from a Property Management and ownership perspective.  We understand servicing multifamily projects through managing tenant leasing, property operations, unit turns, and value add improvement to increase income and cash flow.

Our team is small and effective.  Because we work to understand buyer and seller requirements and have intimate understanding of the Phoenix area, AIM guides your investments through knowledge and quality information.  Unlike the larger companies our team has something to prove and show our brand is worth your time.  We look forward to providing you an open and honest experience.

Recent Transaction by AIM

Patios @ 23rd
6201 N 23rd Avenue, Phoenix Arizona 85015
An impressive makeover on a 10 unit property in Phoenix. Planned for completion November, 2018.
  • Sold price: $795,000.00 – $79,500.00/unit
  • Property sold as a value add opportunity.

New Color Scheme

new paint color investment property

Projects in Progress – Revere Apartments

AIM Professional Real Estate Services

AZ LICENSE: LC645202000

2720 E. Thomas Road, Suite B270
Phoenix, AZ 85016
Phone: (602) 277-7368
Drew Gibson | Principal
Email: drew@aimlease.com

Please call us at (602) 277-7368 or complete this form to request information on our property management services.

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