Growth Challenges Across Fundamentals
Robust supply growth continued to challenge Phoenix’s multifamily market, marking the third-weakest rent performance among the top 30 metros tracked by Yardi Matrix. Average advertised asking rents fell 2.7% year-over-year, to $1,553 in July. On a trailing three-month basis through July, rates in the metro were down 0.2%. Phoenix’s occupancy rate in stabilized properties slid 20 basis points year-over-year, to 93.1% in June.
Employment growth was 0.2% year-over-year through May, slower than the 0.8% U.S. rate, as reported by the national multifamily market outlook. Phoenix’s workforce grew by 14,300 net jobs. Gains were recorded in only four sectors, led by education and health services (20,300 jobs) and government (4,800). Six sectors lost 13,100 jobs combined, with the largest losses in transportation and utilities (-4,200). Meanwhile, the metro’s unemployment rate stood at 4.0% in June, 10 basis points below the U.S. and state figures. The metro had several projects underway that will sustain its economic development, including Mayo Clinic’s $1.9 billion expansion at its Phoenix campus and Amkor Technology Inc.’s $2 billion chip packaging and test facility.
Developers delivered 9,850 units in 2025 through July and, while new construction moderated, the pipeline remained high, with 32,840 units underway. Investment activity remained slow, reaching $2.1 billion in 2025 through July, while the price per unit fell 1.1% year-to-date, to $267,475.
Read the full Yardi Matrix Phoenix Multifamily Market Report: September 2025
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