MARKET SNAPSHOT

Phoenix q2 2025

DOWNLOAD THE FULL REPORT

AVERAGE RENT

$1,556 Q2 2025

OCCUPANCY RATE

91.5% Q2 2025

NET ABSORPTION

9,140 H1 2025

ANNUAL RENT CHANGE

-2.8% Q2 2025

ANNUAL OCCUPANCY CHANGE

-50 BPS Q1 2025

COMPLETIONS

10,262 H1 2025

KEY TAKEAWAYS

Supply and demand were nearly aligned in Q2 2025, signaling a more balanced market. However, pressure remains with approximately 20,000 units still under construction, representing 4.7% of total inventory and keeping downward pressure on occupancy rates in the near term.

Click Here

Generous concessions in newly delivered Class A properties are narrowing the price premium over mid-tier units and drawing some renters upmarket. This shift in demand is placing added pressure on Class B properties, where reduced pricing power has resulted in a 2.9% annual decline in average rents.

Click Here

Core submarkets such as Old Town and North Scottsdale continued to display stronger fundamentals in Q2 2025, supported by lifestyle drivers and sustained renter demand These areas outperformed the metro’s weaker peripheral submarkets, which faced softer leasing activity and greater pricing pressure.

Click Here

READ THE FULL REPORT

MARKET OUTLOOK

The Phoenix multifamily market faces ongoing headwinds in the near term as elevated supply levels continue to pressure both occupancy and rent growth...