State of Phoenix Multifamily

Phoenix’s apartment market is moving through the final stage of a supply-driven reset. Class A units under construction have fallen from 34K three years ago to 13K, below their pre-pandemic level. The metro area is returning to growth leadership. Vacancy is tightening with rent-versus-own economics firmly favoring renting. Phoenix’s rent trend is lagging, but as we have seen in past cycles, stabilization and, eventually, growth follow. Macro uncertainty has amplified local market challenges in 2026, but a 2027 recovery is taking form with investor interest on the rise.