According to the BLS, Phoenix Metropolitan Statistical Area (MSA) was the seventh best performing metro in the Sunbelt in June, having gained back 78 percent of March / April 2020's job losses.
The Phoenix MSA continues to be a nation leader in year-over-year rent growth rising 15 percent to $1,413. This growth rate is nearly four times higher than the National average which increased 4.4 percent, but still $85 below the National average rent of $1,498.
Occupancy rates continued their upward trajectory and increased 130 basis points over-the-year to 96.8 percent, tying the all-time occupancy high set in the late 1970s. This occurred despite delivering over 4,300 new units throughout H1 and marks the 38th consecutive quarter that occupancy has been above the 20-year average of 91.6 percent.
Given the current construction rate, 2021 should prove to be the highest delivery amount since 2009’s 9,315-units. There are 32,693 units currently under construction throughout Greater Phoenix which marked the 29th consecutive quarter where the number of units under construction was above 10,000.
Investment sales volume significantly increased over-the-year by 163 percent to $4.61 billion, with an average PPU (Price Per Unit) increasing 12 percent to $210,895.
Total US non-farm payrolls rose by 850,000 in June, while the unemployment rate increased to 5.9 percent. The job growth was well ahead of Dow Jones estimates for 706,000 and the fastest since the beginning of the year. Since May, U.S. non-farm employment has recouped 70 percent (15.598M) of the job losses stemming from Covid. The Greater Sunbelt area, including Phoenix, has generally recovered faster than the rest of the country with Phoenix, ranking #7 in the Sunbelt, has recouped 78 percent (188,600 jobs) and is on track to recover by YE 2021.