Phoenix, AZ Multifamily Market Report | Colliers | Q4 2025

Market Overview

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Greater Phoenix closed Q4 2025 with fundamentals under measured pressure as new supply continued to outpace absorption. Occupancy edged down to 93.3%, sitting about 140 basis points below the 10-year average, while effective rents fell 2.3% year-over-year to $1,581 per unit. With the exception of North Scottsdale, every submarket posted negative annual rent growth. On the capital markets side, investor conviction held firm: Q4 sales volume reached $807 million, up 45% year-over-year, and full-year volume rose 14.5% to $4.04 billion. The construction pipeline continued to contract, with units under construction falling to 25,208 from 37,332 a year prior, pointing toward improving supply-demand balance as the delivery cycle winds down.

‍About Colliers

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Colliers is a global real estate advisory and investment management firm serving owners, operators, and investors across major U.S. markets. Their Q4 2025 Greater Phoenix multifamily report tracks occupancy, rents, absorption, deliveries, and investment sales activity by submarket to help owners, developers, and investors assess market conditions and timing. To read the full report, click here.