‘A Challenging, Wonky Year.’ Does Distress Loom in Phoenix Multifamily Market?

Article originally posted on Phoenix Business Journal on May 6, 2024

Apartment market conditions continue to weaken amid worsening financial conditions nationwide.

Momentum is picking up in the Phoenix multifamily market compared to a year ago, said Adam Finkel, co-founder and managing partner of Scottsdale-based Tower Capital, which connects apartment developers and buyers to financiers. But Phoenix and other Sunbelt markets that saw the most multifamily construction in 2023 are now beginning to see those units delivered, which is going to create a softening in those markets, he said.

“It’s still gonna be a challenging, wonky year this year. Everyone needs to continue to push through and I think there’s good things on the horizon,” Finkel said. “What we’re seeing right now in Phoenix and in other places such as Texas and Florida, there’s certainly going to be some downward pressure on rents as new supply is being delivered.”

Read complete article here: https://www.bizjournals.com/phoenix/news/2024/05/03/distress-looms-in-the-multifamily-housing-market.html