Phoenix, AZ Multifamily Market Report | Cushman & Wakefield | Q1 2026

Market Overview

‍Phoenix's multifamily market delivered a landmark quarter in Q1 2026, with net absorption reaching 6,261 units, the strongest quarterly performance in at least 26 years. Total inventory reached 396,021 units following 3,854 deliveries, marking an over four-year low and a 20% decline from the prior quarter, with 18,763 units remaining under construction. The combination of record demand and slowing supply helped interrupt a near five-year span of rising vacancy, with the rate declining 70 basis points quarter-over-quarter to 12.1%. Demand was broadly distributed, with 13 of 15 submarkets recording net absorption of 200 units or more. Southwest Valley (955 units) and East Valley (836 units) led the metro, while North Phoenix (662 units), Deer Valley (571 units), and Downtown Phoenix (535 units) also posted strong gains. Average asking rents rose 0.4% quarter-over-quarter to $1,588 per unit, though rents remain 3.0% below year-ago levels as the market continues absorbing prior-cycle supply. Concessions averaged 3.9% of yearly effective rent, near an all-time high. On the investment side, five notable transactions closed in Q1, including Cortland Biltmore (253 units, $125M) and Avant at Fashion Center (335 units, $109M).

‍About Cushman & Wakefield

‍Cushman & Wakefield is a leading global commercial real estate services firm with approximately 53,000 employees across more than 350 offices in nearly 60 countries, reporting $10.3 billion in revenue in 2025. Their quarterly Phoenix Multifamily MarketBeat report tracks vacancy, absorption, asking rents, deliveries, and construction activity across 15 submarkets to help owners, developers, and investors assess market conditions and opportunities. To read the full report, click here.