In today’s dynamic housing landscape, staying ahead of Phoenix rental market trends is crucial for informed decision-making. Whether you’re self-managing or working with a Phoenix property manager, these insights can help landlords optimize occupancy, pricing, and long-term returns.
The Phoenix rental market is shifting. After strong rent declines driven by a surplus of new units in 2023–24, growth has slowed significantly while average asking rents dropped about 2.5% year-over-year as of early 2025.
Although the pace of decline eased to roughly 0.2% in recent quarters. Vacancy rates remain elevated, at around 93% occupancy in stabilized multifamily properties, which is below the national average.
Supply Surge
The supply surge is staggering. By mid 2025, active Phoenix listings rose more than 20% year over year, nearing 5,000 units in some metrics, and metro construction added over 7,000 new units by the end of 2024.
But renter sentiment is shifting broadly, the nation is moving toward a renter’s market with slowed rent growth and rising inventory. Phoenix mirrors this trend: inventory is growing, rent decreases have slowed, and competition among listings is intensifying.
What landlords and Phoenix property manager teams should track now:
· Concessions remain high: Over half of listings continue to offer move-in incentives, such as free weeks of rent or parking credits, as competition for renters endures.
· Leasing times remain long: Single-family homes and multifamily units now stay on the market for roughly 25–31 days—up modestly—but still above U.S. norms.
· Emerging moderate rent growth: With construction slowing down and demand rebounding, modest rent increases of about 1–3% may take hold mid-year, continuing into 2026.
· Savvy professionals should proactively refine leasing strategy: Promote tenant retention to reduce turnover costs.
What To Expect Next
In summary, Phoenix now stands at a crossroads between renter-friendly oversupply and a potential rebound toward rent stability. Landlords partnering with a knowledgeable Phoenix property manager can sharpen strategy around concessions, pricing, and retention to thrive as the market rebalances.
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