Phoenix Multifamily Report – September 2026
Demand is healthy, but the wall of deliveries is not done for yet.
Phoenix multifamily fundamentals remained under pressure through midyear, as average advertised asking rents were flat on a trailing three-month basis, at $1,529. Meanwhile, rates fell 2.1 percent year-over-year, marking the third-steepest decline among Yardi Matrix’s top 30 markets. The market’s occupancy rate in stabilized properties declined just 20 basis points year-over-year, to 93.2 percent in June.
Phoenix employment growth rose 0.2 percent through May, while the U.S. figure slid 0.1 percent. Area unemployment reached 4.9 percent as of June, on par with Arizona and above the 4.2 percent U.S. average, according to preliminary BLS data. The metro added 23,600 net jobs in the 12 months ending May, led by education and health services and professional and business services. Financial activities and leisure and hospitality posted declines. TSMC hit several major expansion milestones in 2026, while development progressed on Phoenix Sky Harbor’s $368 million Terminal 3 north concourse project.
Developers completed 9,149 units in 2026 through July and had an additional 24,400 apartments under construction. Meanwhile, project starts edged up 6 percent by unit count from the same period in 2025. Multifamily sales totaled $1.3 billion through July, just half the amount recorded during the same time frame last year. The average Phoenix price per unit rose 4.1 percent from year-end 2025, to $264,952, well above the $185,325 U.S. average.
