The Phoenix multifamily market in Q1 2026 shows stabilizing vacancy, moderating rents, and a continued pullback in new construction activity, while absorption strengthens meaningfully. Sales pricing and cap rates also reflect shifting investor sentiment amid evolving market conditions. Explore the full Phoenix multifamily market report for deeper insights into performance, development trends, and investment activity.
1Q 2026 Phoenix Multifamily Market: Key Data Points
- Vacancy Rate Edges Down: Vacancy decreased to 11.8%, improving by 10 basis points year-over-year.
- Asking Rents Soften: Average asking rent declined to $1,535 per unit, a 3% YoY decrease.
- Construction Pipeline Falls Sharply:Units under construction dropped 30% YoY to 16,399 units.
- Sales Prices Adjust: Average price per unit fell to $221,942, marking a 12% YoY decline.
- Absorption Outpaces Deliveries: Net absorption reached 4,496 units, up 34% YoY, while construction deliveries fell to 2,978 units (-28% YoY).
- Cap Rates Hold Relatively Steady: Average cap rate measured 6.0%, a slight 10 bps decrease YoY.
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