Phoenix Multifamily Market Report

The following reflects Phoenix multifamily market conditions as of Q3 2026.

The Phoenix multifamily market in Q3 2026 experienced decreased vacancy, increased unemployment, lower rental rates, and fewer construction deliveries year over year. Explore our full Phoenix multifamily market report for deeper insights into rents, absorption, new construction, and sale activity.

Frequently Asked Questions

What is the Phoenix multifamily vacancy rate in Q3 2026?

The Phoenix multifamily vacancy rate was 10.7% in Q3 2026, according to Kidder Mathews research. That is down from 11.4% in Q2 2026 and 12.1% in Q3 2025, a year-over-year decline of 140 basis points. (Data source: CoStar)

What is the average asking rent per unit in Phoenix multifamily in Q3 2026?

The average asking rent in the Phoenix multifamily market was $1,535 per unit per month in Q3 2026, according to Kidder Mathews research. Rents were down from $1,540 in Q2 2026 and $1,549 in Q3 2025, a year-over-year decrease of 0.9%. (Data source: CoStar)

What are average monthly rents by unit type in Phoenix in Q3 2026?

Average monthly rents in the Phoenix multifamily market in Q3 2026 were $1,150 for a studio, $1,373 for a one-bedroom, $1,629 for a two-bedroom, and $2,090 for a three-bedroom, according to Kidder Mathews research. (Data source: CoStar)

What was Phoenix multifamily net absorption in Q3 2026?

Phoenix multifamily net absorption was 4,366 units in Q3 2026, according to Kidder Mathews research. Net absorption measures the net change in occupied apartment units, so a positive figure means more units were taken up by renters than were vacated. Year-to-date absorption reached 14,990 units in 2026, up 20.7% from 12,418 units in the same period of 2025. (Data source: CoStar)

How many multifamily units were delivered in Phoenix in Q3 2026?

Phoenix delivered 1,849 multifamily units in Q3 2026, according to Kidder Mathews research. Year-to-date deliveries total 9,523 units in 2026, down 25.9% from 12,858 units in the same period of 2025. (Data source: CoStar)

How many multifamily units are under construction in Phoenix in Q3 2026?

There were 14,096 multifamily units under construction in Phoenix in Q3 2026, down from 15,120 units in Q2 2026 and 21,122 units in Q3 2025, a year-over-year decline of 33.3%, according to Kidder Mathews research. The largest projects are The Pier in Downtown Tempe with 586 units and Inspire Sonoran Desert in North Gateway with 560 units. (Data source: CoStar)

What is the average multifamily sale price per unit in Phoenix in Q3 2026?

The average multifamily sale price in Phoenix was $194,461 per unit in Q3 2026, according to Kidder Mathews research. That compares with $273,078 in Q2 2026 and $249,615 in Q3 2025, a year-over-year decrease of 22.1%. (Data source: CoStar)

What is the average multifamily cap rate in Phoenix in Q3 2026?

The average multifamily cap rate in Phoenix was 6.7% in Q3 2026, according to Kidder Mathews research. That is up from 6.0% in both Q2 2026 and Q3 2025, an increase of 70 basis points year over year. (Data source: CoStar)

What were the largest multifamily sales in Phoenix in Q3 2026?

The largest Phoenix multifamily sale in Q3 2026 was Cadia Crossing, a 256-unit property in Downtown Gilbert that sold for $80,000,000, or $312,500 per unit, according to Kidder Mathews research. GSL Properties purchased it from Blackstone. The next largest sales were Dryden Luxury Living in Midtown Phoenix at $73,650,000 for 254 units and Parc Roundtree Ranch in South Peoria at $58,000,000 for 275 units. (Data source: CoStar)

Which multifamily properties were completed in Phoenix in Q3 2026?

The largest multifamily completion in Phoenix in Q3 2026 was The Mason in East Mesa, a 419-unit property delivered in July 2026 by High Street Residential, according to Kidder Mathews research. Other significant deliveries include Yardly Algodon in Maryvale with 292 units, Rambler Tempe in Downtown Tempe with 289 units, and Atlas Kierland in North Scottsdale with 261 units. (Data source: CoStar)

What is the Phoenix multifamily market outlook following Q3 2026?

Phoenix multifamily fundamentals showed improvement in Q3 2026, according to Kidder Mathews research. Vacancy declined 140 basis points year over year to 10.7%, net absorption of 4,366 units exceeded the 1,849 units delivered, and the units under construction fell 33.3% year over year to 14,096. Average asking rents were down 0.9% year over year, and unemployment rose year over year. (Data source: CoStar)

Last updated: Q3 2026. Data source: CoStar. Compiled by the Kidder Mathews Research Group.

Q3 2026 Phoenix Multifamily Market: Key Data Points

Explore our full Phoenix multifamily market review for detailed trends and submarket insights.

• Vacancy Rate: Phoenix multifamily vacancy was 10.7% in Q3 2026, down 140 basis points from 12.1% a year earlier and from 11.4% in Q2 2026.
• Average Asking Rent: Average asking rents were $1,535 per unit, down 0.9% year over year from $1,549. Studios averaged $1,150 and three-bedrooms averaged $2,090.
• Net Absorption: Net absorption totaled 4,366 units in Q3 2026 and 14,990 units year to date, up 20.7% from 12,418 units in the same period of 2025.
• Construction Deliveries: Developers delivered 1,849 units in Q3 2026 and 9,523 units year to date, down 25.9% from 12,858 units in 2025.
• Under Construction: The pipeline stood at 14,096 units, down 33.3% from 21,122 units a year earlier.
• Sale Price and Cap Rate: The average sale price was $194,461 per unit, down 22.1% year over year, while the average cap rate rose 70 basis points to 6.7%.
• Largest Sale: Cadia Crossing, a 256-unit property in Downtown Gilbert, sold for $80,000,000 ($312,500 per unit), with GSL Properties acquiring it from Blackstone.

Average Rent by Unit Type

Significant Sale Transactions Q3 2026

Significant Under Construction

Significant Completed Construction Q3 2026

Data as of Q3 2026. Source: CoStar. Prepared by the Kidder Mathews Research Group.