MARKET SNAPSHOT

Phoenix q1 2026

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AVERAGE RENT

$1,507 Q1 2026

OCCUPANCY RATE

91.1% Q1 2026

NET ABSORPTION

18,603 T4Q

ANNUAL RENT CHANGE

-3.6% Q1 2026

YOY OCCUPANCY CHANGE

-60 BPS

UNIT COMPLETIONS

19,895 T4Q

KEY TAKEAWAYS

Phoenix absorbed 5,752 units in Q1 2026, the strongest quarterly demand over the last 10 year period, bringing trailing 12-month absorption to 18,603 units, reflecting a market absorbing a historic supply cycle with notable resilience.

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The construction pipeline has contracted 32% over four quarters to 18,375 units (4.2% of inventory), with trailing 12-month starts declining to 10,638 units, positioning the market firmly in late-cycle and pointing toward meaningfully lighter deliveries through 2027.

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Average effective rents of $1,507 remain down 3.6% year-over-year, but Q1's 0.6% sequential gain marks the first positive quarter in four, while stabilized occupancy of 91.1%, down just 60 basis points annually, suggests the correction may be approaching a floor.

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MARKET OUTLOOK

Phoenix is navigating the late stages of a historically elevated supply cycle, and the data increasingly supports a cautiously constructive forward view. The delivery wave has crested...