Phoenix Multifamily Market Report

Economic expansion approaches. Phoenix is on the verge of a robust job growth period that will be preceded by record apartment construction, with property metrics reflecting this in 2023. Headline expansions — such as the construction of Taiwan Semiconductor Manufacturing Company’s facility in Deer Valley — have piqued the interest of developers, with this entrance predicted to help spur the creation of 80,000 new jobs across the metro over the next five years. Builders responding to this, as well as record-low vacancy in 2021, complete more than 21,000 new units this year. In turn, heightened supply pressure will lift vacancy to a decade-high. This rise could, however, mark the end of a transitional period in the market. More than 316,000 new residents are projected to relocate to Phoenix over the next five years — ahead of all other major metros — boosting rental demand and tightening conditions further out.