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Phoenix Rising: The Enduring Appeal of the Multifamily Market

Updated: Apr 8

Phoenix skyline

Phoenix, Arizona’s multifamily real estate market is witnessing a surge that is more than just a temporary spike. This growth spurt is underpinned by a confluence of encouraging economic metrics and demographic trends, painting a picture of a city where the multifamily sector is not just booming but has a strong foundation for sustained growth.

Sustained Occupancy Rates Signal Ongoing Demand

One of the standout features of Phoenix’s multifamily market is the robust average occupancy rate, which has been consistently high at 94.5% from Q1 2011 to Q4 2023. A slight dip to 92.8% in Q4 2023, although noticeable, doesn’t detract from the overall trend of enduring demand. This is a clear indication that Phoenix continues to be a magnet for new residents and that its housing market is keeping pace.

occupancy and rent growth by quarter chart in Phoenix

Source: Axiometrics; CBRE Research

Phoenix Tops Rent Growth Charts

Notably, Phoenix has led the charge in rent growth, both during and after the pandemic. The city boasts a post-pandemic 5-Year Compound Annual Growth Rate (CAGR) for rent of 6.5%, marginally higher than the pre-pandemic figures. This robust growth is a testament to the city's expanding economy and its increasing desirability as a place to live and work.

Record-Breaking Absorption and Strategic Pipeline Development


The year 2023 marked a milestone with the highest annual absorption rate on record for Phoenix, an unequivocal sign of the multifamily market’s vigor. This aligns with the strategic pipeline development that judiciously balances supply with market demand, ensuring the city avoids the pitfalls of over-saturation.


Economic and Demographic Forces Fuel the Market

The city is not only leading in household income growth but also shows a considerable 8.5% increase in the employment base compared to pre-pandemic levels, signaling a healthy demand for multifamily real estate. Moreover, Phoenix ranks among the top five fastest-growing metros in the U.S., projecting to welcome approximately 900,000 new residents over the next decade, thereby underlining the potential for a burgeoning housing market.


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Largest announced employment investments

Source: CBRE

Population growth forecast in phoenix

Source: Bureau of Labor Statistics; CBRE Research

Financial Incentives and Tax Advantages

From an investment perspective, Arizona offers compelling financial incentives. With insurance costs that are notably lower than the national average and tax advantages that present a cost-effective environment for real estate operations, Phoenix positions itself as an alluring destination for real estate investors.

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A Comprehensive Look at Phoenix's Market

Phoenix's multifamily market is more than just strong; it's vibrant and forward-looking. Its robust economic vitality, demographic expansion, and favorable financial climate serve as a strong backdrop for the multifamily sector's appeal. This multifaceted growth story suggests that the city is on a trajectory of sustained success, making it a prime location for long-term investment in real estate. With strategic market insights and a focus on the future, Phoenix's multifamily housing market emerges as a beacon of potential for investors, developers, and stakeholders alike.

As always, Be Bold, Be great, and Keep Pushing Forward!

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P.S. If one of your priorities, like mine, is building and preserving your wealth through multifamily real estate investments, click here to download my new eBook: The Ultimate Guide to Creating & Preserving Your Wealth.


Source: CBRE Research

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If you are an accredited investor interested in learning more about passively investing in multifamily properties, click here to complete our investor form and schedule a call with our Investor Relations team.

About Ellie Perlman

photo of ellie perlman

Ellie Perlman is the founder of Blue Lake Capital, a commercial real estate investment firm specializing in multifamily investing throughout the United States. At Blue Lake Capital, Ellie partners with both institutional and individual investors to grow their wealth by achieving double-digit returns by investing alongside her in exclusive multifamily deals they usually don't have access to.

A defining factor of Blue Lake Capital’s strategy is founded in utilizing machine learning/artificial intelligence throughout the course of all acquisitions and asset management. This advanced technology enables the company to produce accurate and data-driven forecasting for all assets on a market, property, and even tenant basis. In doing so, Blue Lake is able to lead commercial investments with the full capabilities of today’s technology.

Ellie is the founding host of REady2Scale, a podcast that highlights the assets, processes, and strategies for the multiple approaches to successful real estate investing.

She started her career as a commercial real estate lawyer, leading real estate transactions for one of Israel’s leading development companies. Later, as a property manager for Israel’s largest energy company, she oversaw properties worth over $100MM. Additionally, Ellie is an experienced entrepreneur who helped build and scale companies by improving their business operations.

Ellie holds a Masters in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.

You can read more about Blue Lake Capital and Ellie Perlman at

*The content provided on this website, including all downloadable resources, is for informational purposes only and should not be interpreted as financial advice. Furthermore, this material does not constitute an offer to sell or a solicitation of an offer to buy any securities.


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