PHOENIX — While multifamily construction starts slowed nationwide this summer, Phoenix continues to buck the trend with a substantial rise in building activity, according to the latest data through May 2025.
The Valley saw an increase of 826 multifamily permits year-over-year, a surge fueled by the region’s sustained population growth and high rental demand. This positions Phoenix among the top U.S. metropolitan areas expanding their rental housing stock, even as developers across the country navigate rising construction costs, labor shortages, and economic uncertainty.
The data highlights Phoenix’s resilience in the multifamily sector at a time when many markets are scaling back new developments. Industry experts point to strong in-migration, job growth, and the city’s relative affordability as key factors driving the construction momentum.
Despite challenges facing builders nationwide, local developers remain optimistic that the Valley’s robust housing demand will continue to outpace national trends in the months ahead.
