MARKET SNAPSHOT

Phoenix q1 2025

AVERAGE RENT

$1,560 Q1 2025

OCCUPANCY RATE

91.9% Q1 2025

QUARTERLY NET ABSORPTION

5,149 Q1 2025

ANNUAL RENT CHANGE

-2.3% Q1 2025

ANNUAL OCCUPANCY CHANGE

-20 BPS Q1 2025

QUARTERLY COMPLETIONS

4,850 Q1 2025

KEY TAKEAWAYS
Demand is at record highs, with Q1 absorption reaching 5,149 units—more than double the 10-year quarterly average and the second-highest quarterly total ever recorded. The 12-month absorption of 18,413 units is also a market record.
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Effective rent growth remains negative largely due to intense competition from new supply and concession usage. However, the pace of rent contraction is slowing, and modest improvement is forecast for 2025.
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New construction is slowing, with Q1 2025 deliveries down 36% from the previous quarter, reflecting a pipeline that is now nearly 50% below its recent peak—a trend that could ease pressure on rents and occupancy later this year.
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Alex Blagojevich

Alex Blagojevich

Executive Managing Director / Co-Founder
Michael-Sullivan

Michael Sullivan

Executive Managing Director / Co-Founder
Brett

Brett Meinzer

Managing Director
Thomas-Skevington-web

Thomas Skevington

Senior Advisor
Jake Sullivan_2023

Jake Sullivan

Senior Advisor

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