Phoenix Multifamily Market Report – January 2025

High Supply Stifles Rent Growth, Occupancy Stalls

Phoenix’s multifamily fundamentals were a mixed bag at the end of 2024, with lagging rent performance and strong supply growth amid steady economic expansion, according to the latest Phoenix multifamily market report. The average advertised asking rent declined 0.4%, on a trailing three-month basis through November, to $1,564, contracting for six months straight. Meanwhile, occupancy in stabilized properties stood at 93.2% as of October, unchanged year-over-year and behind the 94.7% U.S. rate, as reported by the national multifamily market outlook.

Phoenix job growth was 2.2% as of September, significantly above the 1.4% national average. The metro gained 43,500 net jobs over 12 months. More than half of these (23,600 jobs), were added in education and health services. Three sectors lost 8,100 jobs combined, with the highest losses recorded in leisure and hospitality (-4,100 jobs). Meanwhile, the unemployment rate was at a low 3.3% in October, tighter than both the 4.1% U.S. rate and the 3.6% state average. One of the most notable projects underway in Phoenix is Intel’s $30 billion-plus investment into building two chip factories and modernizing another at the Ocotillo campus.

Deliveries peaked in 2024, with 15,703 units completed through November. Construction remained robust, with 36,842 units underway, nearly half of which broke ground in 2024. Investment totaled $3 billion, behind only Dallas ($3.1 billion) and Denver ($3.4 billion). The price per unit saw a 1.1% uptick, to $274,359, well above the $192,050 U.S. figure.

Read the full Yardi Matrix Phoenix Multifamily Market Report: January 2025