Phoenix, AZ Multifamily Market Report | Cushman & Wakefield | Q4 2025

Market Overview

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Phoenix absorbed 16,569 multifamily units in 2025, the second-strongest annual total on record and 171% above the market's historical average. Demand exceeded 3,500 units for the eighth consecutive quarter, a streak that has meaningfully offset a historically large delivery slate: developers completed 20,645 units during the year, 162% of the 10-year annual average, yet vacancy rose only 30 basis points to 12.8%. Asking rents moderated for a third straight year, averaging $1,584 per unit, down 3.1% annually, with concessions averaging 2.3% of effective rent. With 20,124 units under construction and deliveries projected to taper, stabilization is within reach. The metro's economic engine remains intact: 31,200 jobs added over the past year, median household income up 4.0%, and GDP growth of 2.2% outpacing the national rate.

‍About Cushman & Wakefield

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Cushman & Wakefield is a global commercial real estate services firm with approximately 52,000 employees across 60 countries and $9.4 billion in revenue. Their Phoenix Q4 2025 multifamily MarketBeat tracks vacancy, asking rents, net absorption, and construction activity across 15 submarkets to help owners and investors assess Metro Phoenix market conditions. To read the full report, click here.