Market Report
Phoenix Multifamily Market Report
1Q 2026
East Valley Leads Multifamily Improvements
as𠊌onstruction Pullback Tempers Softness in the West
Fewer deliveries aid higher-end apartments as value segments stay strained. Despite hiring volatility and immigration headwinds, Phoenix’s multifamily market is expected to continue to recover as supply pressures ease and local inflation — among the nation’s lowest at below 2 percent last year — allows incomes to catch up to asking rents. Performance will likely remain split by submarket, as vacancy trended down late last year in the East Valley and North Phoenix-Scottsdale corridors, supported by affluent residents and steady job creation in healthcare and white-collar industries. With completions projected to fall by nearly 50 percent across the market in 2026, existing properties will face less competition from new supply, positioning Class A fundamentals to strengthen and potentially regain rent growth. In contrast, centrally located neighborhoods and the West Valley may lag, as lower-income renters face weaker hiring in sectors such as manufacturing, logistics, and hospitality, keeping pressure on Class B and C rentals.
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