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September 30, 2016

Apartments: 10,000 units being built, $1B in Q3 sales, 2-bedroom costs $2K in Scottsdale

Phoenix Business Journal

Mike Sunnucks

Apartments: 10,000 units being built, $1B in Q3 sales, 2-bedroom costs $2K in Scottsdale

Apartments keep getting built, complexes keeping being sold and traded and rents keep on rising (mostly) in Phoenix and other U.S. markets.

That is according to new data from real estate firm Kidder Mathews and Zumper, an online apartment rental company.

Kidder Mathews' analysis of Phoenix's multifamily market during the third quarter shows:

  • 102 multifamily complexes were sold for more than $1 billion. That translated into almost $97,300 per unit, up 22.5 percent from last year.

Some real estate investors continue to be bullish on multifamily while others are taking advantage of tax rules related to real estate sales.

  • 10,100 new apartments are under construction with a continued development focus on Tempe and central and downtown Phoenix.

Apartment rents also continue to increase in the Phoenix metro area.

Real estate firm Zumper looked at two-bedroom rents in scores of U.S. cities.

The median rent for a two-bedroom in Scottsdale is $2,020 per month. That is up 10.4 percent from 2015, according to Zumper.

The median price for a two-bedroom is $4,780 in San Francisco, $3,470 in New York and $1,710 in Denver.

The median price for a two-bedroom apartment in Gilbert is $1,200 per month. In Chandler it is $1,130 and Phoenix $1,000 per month.

Rents in Gilbert are down 4.4 percent but they are up 8.7 percent in Phoenix and 10.8 percent in Chandler.

For the full story, go to Phoenix Business Journal.

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