PHOENIX — Phoenix’s multifamily housing market is feeling the strain of an oversupply, with falling rents and lower occupancy rates signaling a shift after years of rapid growth, according to Yardi Matrix’s June 2025 report.
Average asking rents dropped 3.1% year-over-year, while occupancy rates slid to 93%, dipping below the national average. The slowdown comes even as developers continue to add supply—more than 34,000 units are currently in the pipeline, and a record 28,780 are expected to be completed by the end of 2025.
While new construction starts have eased, the volume of projects already underway means the market may take time to absorb the influx of units. This dynamic is adding pressure on landlords to offer concessions and competitive pricing to attract tenants.
Job growth in Phoenix has also weakened in recent months, though the city still maintains an unemployment rate better than the national average. Looking ahead, major semiconductor manufacturing expansions by TSMC and Intel could bolster employment and help stabilize demand for housing in the coming years, but the benefits may not be immediate.
