In 2023, Phoenix and Raleigh emerged as top-performing retail markets in the U.S., boasting over 9% annual asking rent growth due to strong in-migration, rising incomes, and growing economies. Phoenix, particularly, saw a surge in demand following COVID-19, with significant relocation from urban areas, resulting in a 9.7% increase in asking rents, while Raleigh experienced a 9.5% increase. Both markets have consistently outpaced the national average in rent growth over the past decade, driven by population growth and rising incomes. Despite expectations of rent growth deceleration due to macroeconomic factors, including record consumer debt, Phoenix and Raleigh are anticipated to remain attractive for relocation, sustaining above-average rent growth fueled by continued population and job growth.
