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Market Report

Phoenix Multifamily Market Report

2025 Investment Forecast

Record New Supply Met With Equivalent
Demand as In-Migration Continues

Perimeter areas seeing strong demand amid population growth. After a record 2024, net absorption will rise further this year, aided by the third largest in-migration total among U.S. markets. This influx of residents will help keep renter demand ahead of the market’s largest annual supply wave since at least before 2000. This trend is evident in the Avondale-Goodyear- West Glendale area, where net absorption largely kept pace with a local stock expansion of over 20 percent last year, warranting a notable 2025 delivery slate. With a local median age under 40, this area is popular with younger renters. The Peoria-Sun City-Surprise region, which serves an older demographic, is expected to follow a similar path. Elsewhere, vacancy rates should tighten in areas with fewer arrivals, such as East and Central Phoenix, appealable to renters for their proximity to the CBD and Arizona State University campuses. To the east, apartment demand is rising in Chandler, Gilbert and Northwest Mesa, with the three areas entering 2025 with the market’s lowest vacancy rates.

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