MARKET SNAPSHOT

Phoenix q2 2026

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AVERAGE RENT

$1,440 Q2 2026

OCCUPANCY RATE

91.3% Q2 2026

NET ABSORPTION

21,910 T4Q

ANNUAL RENT CHANGE

-4.6% Q2 2026

YOY OCCUPANCY CHANGE

-10 BPS

UNIT COMPLETIONS

20,636 T4Q

KEY TAKEAWAYS

Trailing four-quarter absorption of 21,910 units has surpassed 20,636 units delivered, a genuine supply-demand inflection reinforced by Phoenix's structural growth drivers, including sustained in-migration and the nation's fourth-fastest population growth.

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The construction pipeline is contracting rapidly, down 29% year-over-year to 16,688 units, or 3.8% of inventory, while trailing 12-month starts have fallen even further to 9,153 units, setting up meaningfully lighter deliveries through 2027.

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Effective rents posted their first positive sequential quarter of the current cycle, and at 91.3%, Phoenix's occupancy is now the strongest among its Southwest peer markets, a sign the metro's underlying demand base is unusually resilient relative to other Sun Belt peers absorbing similar supply waves.

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MARKET OUTLOOK

Phoenix is entering the late stages of its most significant supply cycle in decades, with absorption now exceeding deliveries for the first time in this cycle...