Phoenix Multifamily Market Report

Mid- to high-end leasing holds firm. Robust apartment demand in Phoenix drove the metro’s highest first-quarter absorption on record in early 2026, contributing to year-over-year vacancy declines across all class cuts. This occurred despite a 0.6 percent year-over-year slowdown in population growth, though the metro remained in the top third among major markets. Phoenix has also recorded the seventh fastest pace of inventory expansion among major markets over the past five years. During this same period, Class A properties experienced a 100-basis-point increase in vacancy, compared to 160 basis points in Class B and 300 basis points in Class C, highlighting stronger renter appetite for newer, higher-quality stock.