Phoenix MSA Nears 50% Unit Turnover
By: Rue Bax, Senior Managing Partner, and Thomas M. Brophy, Director of Research, ABI Multifamily
Beginning in 2010, and rapidly increasing in 2011/12, the Phoenix MSA multifamily market experienced tremendous growth from $42,741/unit ($54.16/sf) to $82,138/unit ($102.72/sf) as of November 14, 2014. We wanted to take a deeper look into the price/unit and price/SF metrics and what we found was quite surprising. The Sales Velocity graphic, enclosed, tracks unit sales turnover for 100+ unit properties across the Phoenix MSA.
Unit inventory turnover, expressed as a percentage of units sold, has steadily increased since 2010 which saw 9,796 of 238,828 units sell which equates to a 4.1% total unit turnover rate. We expect that rate to increase to 12% by the end of 2014.
From 2010 through November 14, 2014, 105,973 units have been sold; stated another way, close to 50%, 44.7% to be exact, of the entire Phoenix MSA’s 100+ unit inventory has changed hands.
During this same 5 year time period, and referenced above, average sales price/unit increased 92% to $82,138/unit (YTD 2014).