Phoenix Multifamily Market: Surging Demand

1️⃣ Rent Growth: 2.0%(core) → 2.5%(value-add)
Slight rent recovery as job growth and migration stabilize after recent cooling.
2️⃣ IRR Target: 8.50–9.50% → 10.00–11.50%
Sharply higher returns show strong value-add upside as pricing resets.
3️⃣ Going-in Cap Rate: 4.00–4.50% → 4.75–5.50%
Initial yields improve meaningfully, reflecting more favorable acquisitions.
4️⃣ Exit Cap Rate: 4.75–5.25% → 5.25–6.00%
Higher exit caps indicate conservative expectations amid elevated supply risk.
5️⃣ Risk/Return Profile = High-Growth With Volatility
Strong upside but more cyclical exposure than mature markets.