The Phoenix multifamily market in Q3 2025 reflects rising vacancy rates and declining rental prices, while construction activity and sales volume continue to slow. Explore our full Phoenix multifamily market review for in-depth analysis and trends.
3Q 2025 Phoenix Multifamily Market: Key Data Points
- Vacancy Rate Rises: Phoenix’s multifamily vacancy rate increased to 11.6% in 3Q 2025, up 70 basis points year-over-year.
- Average Asking Rents Decline: Asking rents fell to $1,541 per month, marking a 2% decrease from 3Q 2024.
- Construction Pipeline Contracts: Units under construction dropped to 17,590, a 36% year-over-year decline.
- Sales Price Per Unit Falls: The average sales price per unit decreased to $249,521, down 5% year-over-year.
- Net Absorption Slows: Net absorption totaled 10,152 units YTD, a 6% decline compared to the same period in 2024.
- Construction Deliveries Drop: Deliveries fell to 4,135 units YTD, a 28% decrease year-over-year.
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