The Phoenix multifamily market in Q4 2025 saw vacancy rates rise slightly while rents declined modestly. Construction activity and deliveries continued to slow, signaling a pullback in new supply. Sales prices increased year-over-year, and cap rates compressed, reflecting ongoing investor interest despite softer absorption. Explore our full Phoenix multifamily market review for detailed insights and trends.
4Q 2025 Phoenix Multifamily Market: Key Data Points
- Vacancy Rate Moves Higher: Multifamily vacancy climbed to 12.6%, up 80 bps year-over-year.
- Average Asking Rent Declines: Rents averaged $1,529 per unit per month, a 3% decrease year-over-year.
- Construction Pipeline Contracts: Units under construction fell to 18,021, down 29% from last year.
- Sales Price Rises: Average sales price per unit reached $251,699, a 10% increase year-over-year.
- Deliveries & Absorption Slow: Q4 deliveries totaled 3,585 units, down 23%, while net absorption was 1,488 units, a 15% decline year-over-year.
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