Phoenix Multifamily Market Report

Strong demographics compensate for new supply. Among major markets, Phoenix has ranked third in both total net in-migration and job creation since the end of 2019, while also posting one of the largest jumps in median household income. These factors together underpin heightened demand for housing, supporting elevated multifamily development. While total deliveries will rise for the fourth-consecutive year in 2024 to a record high, apartment absorption has notably kept pace through midyear. As such, metrowide vacancy is on track to dip this year; in fact, the submarkets with the highest vacancies in June, including West Phoenix and South Glendale, were not the leaders in development. Instead, vacancy and rents were the most challenged relative to 2019 in submarkets with less construction and lower median incomes.