The good news just keeps coming for apartments. New resident rents rose 5.2 percent over the 12 months that ended in the second quarter. That’s the biggest rent hike since 1999-2000, according to the latest data from MPF Research, based in Carrollton, Texas.
Economic recovery is driving most of the surprising numbers. Lower turnover and construction delays also helped grow rents and fill vacant apartments. Demand for apartments is even stronger than experts anticipated. Younger Millennials in their early-to-mid-20s still make up the biggest block of new renters. But older Millennial renters in their early-to-mid-30s are staying in their rental apartments longer—even after they have coupled up and had children.
Brian Smuckler and Jeff Seaman of CBRE’s Multifamily Investment Group completed the following sales transactions totaling $4.55 million across three properties throughout the Valley:
* Catalina, a 33-unit community located at 3001 North 36th Street in Phoenix, sold for $2.2 million ($66,666 per unit). The buyer was Pacifica-GSPT, LLC of Los Gatos, California. The seller was Catalina of Arizona, LLC of Phoenix, Arizona.
* Setting Sun, a 28-unit property located at 6923 North 80th Avenue in Glendale, sold for $1.35 million ($48,214 per unit). The buyer was Ding Tran and Tyet Le of Gilbert, Arizona. The seller was Eightysun, LLLP of Vancouver, British Columbia.
* Oberon Place, a 24-unit community located at 1822 North 32nd Street in Phoenix, sold for $1 million ($41,666 per unit). The buyer was Oberon, LLC of Los Angeles, California. The seller was Arizona Palms Holdings, LTD of Surrey, British Columbia.