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Market Report

Phoenix Multifamily Market Report

2025 Investment Forecast

Phoenix Renters Remarkably Keeping Pace
With Record New Supply as Investors Target Gaps in Pipeline

Robust expansions met with strong demand. After a record-setting 2024, net absorption in the metro will climb even higher this year, aided by the third-largest net in-migration total among major U.S markets. These tailwinds have bolstered high renter demand, warranting the largest annual supply influx since before 2000. This dynamic will continue to be evident in the Avondale-Goodyear-West Glendale area, where stock growth topped 20 percent last year and net absorption represented nearly a fifth of the market total. A local median age under 40 here indicates popularity with younger renters. The Peoria-Sun City-Surprise area, with an older resident base, will likely see a similar trajectory. Vacancy should tighten in regions with lower arrivals, like Central Phoenix, which draw renters with proximity to the CBD and the campuses of Arizona State University. Further east, Chandler, Gilbert and Northwest Mesa saw vacancy edge down in 2024, notably for Class B and C units, despite already being the three least-vacant submarkets.
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