Phoenix Multifamily Market Report – January 2025

Market Overview

Phoenix’s multifamily market faced ongoing challenges in early 2025, with rent growth down 2.3% year-over-year and occupancy softening to 94%. Supply pressure continues to weigh on fundamentals, with over 29,000 units under construction—one of the largest pipelines in the nation. Submarkets such as Tempe, Central Phoenix, and Chandler remain hotbeds of development, leading to widespread concessions and increased lease-up timelines. That said, population growth and affordability relative to coastal markets continue to support long-term rental demand. While short-term performance is under pressure, developers are beginning to slow new starts, signaling a possible market recalibration later in the year.

About Yardi Matrix

Yardi Matrix is a premier provider of commercial real estate intelligence, offering detailed data across multifamily, office, and industrial sectors. With coverage spanning over 160 U.S. metros, Yardi delivers granular insights on rent trends, occupancy, ownership, and development pipelines. Their multifamily market reports distill complex datasets into actionable intelligence for institutional investors, developers, and asset managers. In rapidly evolving markets like Phoenix, Yardi Matrix helps stakeholders monitor submarket-level performance and adapt investment strategies with precision.