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.