Market Snapshot Phoenix Q1 2025

Market Overview

Phoenix posted one of its strongest quarters on record, with 5,149 units absorbed in Q1 2025—more than double the 10-year quarterly average and the second-highest total ever recorded in the metro. Despite this demand surge, effective rent growth remained negative (-2.3%) due to high levels of new supply and elevated concessions, especially in submarkets like Tempe and South Phoenix. However, construction activity is tapering off, with Q1 deliveries down 36% from the previous quarter, and the overall pipeline now nearly 50% below its recent peak. With demand finally outpacing completions and signs of rent contraction slowing, Phoenix could see improved fundamentals by late 2025.

About MMG

MMG Real Estate Advisors is a national investment sales and multifamily advisory firm that blends transactional expertise with detailed market intelligence. Their quarterly reports analyze key fundamentals like absorption, rent trends, construction pipeline, and investor activity across major U.S. metros. In Phoenix—one of the most active and volatile Sun Belt markets—MMG’s research helps owners, operators, and investors track performance across urban and suburban submarkets, assess risk, and plan for long-term growth with real-time, data-backed insights.