Phoenix Multifamily Report – January 2025
While supply has hit a new high, occupancy is not budging.
Phoenix’s multifamily fundamentals were a mixed bag at the end of 2024, with lagging rent performance and strong supply growth amid steady economic expansion. The average advertised asking rent declined 0.4 percent on a trailing three-month basis through November, to $1,564, contracting for six months straight. Meanwhile, occupancy in stabilized properties stood at 93.2 percent as of October, unchanged year-over-year and behind the 94.7 percent U.S. rate.
Phoenix job growth was 2.2 percent as of September, significantly above the 1.4 percent national average. The metro gained 43,500 net jobs over 12 months. More than half of these (23,600 jobs), were added in education and health services. Three sectors lost 8,100 jobs combined, with the highest losses recorded in leisure and hospitality (-4,100 jobs). Meanwhile, the unemployment rate was at a low 3.3 percent in October, tighter than both the 4.1 percent U.S. rate and the 3.6 percent state average. One of the most notable projects underway in Phoenix is Intel’s $30 billion-plus investment into building two chip factories and modernizing another at the Ocotillo campus.
Deliveries peaked in 2024, with 15,703 units completed through November. Construction remained robust, with 36,842 units underway, nearly half of which broke ground in 2024. Investment totaled $3 billion, behind only Dallas ($3.1 billion) and Denver ($3.4 billion). The price per unit saw a 1.1 percent uptick, to $274,359, well above the $192,050 U.S. figure.
