Read the latest Yardi Matrix Phoenix Multifamily Market Report.
Strong Supply Dominates Fundamentals
Robust supply continues to pressure Phoenix’s multifamily market, restraining rent growth and impacting occupancy, according to the latest Phoenix multifamily market report. Average advertised asking rents fell 3.1% year-over-year, to $1,550 in April, posting the third-lowest performance among Yardi Matrix’s top 30 metros. More recently, however, losses slowed to a 0.2% decline on a trailing three-month basis. New supply also pushed down occupancy in stabilized properties. The rate decreased 40 basis points year-over-year, to 93.0% in March, lagging the 94.4% U.S. average, as reported by the national multifamily market outlook.
Phoenix’s employment market remained on a softening trend, up 0.5% as of February. The metro actually lost 7,500 net jobs over 12 months. Yet, the unemployment rate was 3.1% as of April, outperforming the U.S. (4.2%) and state (4.1%). Phoenix’s main employment sector, education and health services, added 12,600 positions. Professional and business services shed the most jobs (-10,600). While some of these positions were at Intel, the company’s $32 billion expansion across two new factories in Ocotillo is still expected to create 3,000 direct manufacturing jobs.
Following a two-year wall of deliveries, the pipeline is steadily cooling off. Still, figures remain fairly robust, with 3,763 units completed this year through April and an additional 34,937 units underway. Investment totaled $628 million through April, for a
price per unit that stood virtually flat compared to last year.
Read the full Yardi Matrix Phoenix Multifamily Market Report: June 2025
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