Phoenix, AZ Multifamily Market Report Q3 2025

Market Overview

‍The Phoenix multifamily market entered a reset phase during Q3 2025 as an elevated pipeline and strong in-migration collided. Rent declined roughly 2.8% year-over-year to about $1,600 per unit while roughly 6,500 units delivered during the quarter and 22,100 remained under construction. Despite healthy annual absorption of about 17,000 units, vacancy climbed above 12% and competitive pressure is mounting. That said, slower new-starts point to a potential inflection toward stabilisation in 2026.

‍About Matthews

‍Matthews Real Estate Investment Services is a national advisory and research firm specialising in multifamily investment sales, debt and structured finance. Their Q3 2025 Phoenix multifamily market report combines supply/demand metrics, rent trends and investment-market activity to inform owners, developers and capital-markets participants. To read the full report, click here.