Phoenix Multifamily Market Shows Resilience Amid Rising Supply and Strong Transaction Activity

The Phoenix multifamily market continued to show resilience in the third quarter of 2025, according to new data from ABI Multifamily. Despite elevated supply levels and modest softening in rents, investor demand and transaction activity remain solid across the metro area. 

Sales activity increased notably, with total transaction volume rising 29.9% year-over-year to $1.55 billion. The average price per unit climbed 1.3% to $271,660, while average price per square foot eased slightly to $279.90, reflecting recalibrated valuations across different asset classes. 

Rent performance stabilized compared to earlier quarters. Average rents declined slightly year-over-year, from $1,561 to $1,509, while occupancy dipped to 93%, consistent with the pace of new deliveries entering the market. Nearly 15,600 new units were delivered in the past year, with 41,000 units under construction and 6,900 more in planning — signaling continued long-term confidence in the region’s growth trajectory. 

Top Q3 trades included The Nines at Kierland in Scottsdale ($419,384 per unit) and Huxley in Scottsdale ($395,833 per unit), illustrating strong investor appetite for core suburban assets with modern construction and high-end finishes. 

Despite mild short-term pressure on rents and occupancy, Phoenix’s fundamentals — population growth, income gains, and economic diversification — continue to support multifamily investment. The metro’s mix of affordability and employment growth keeps it positioned as one of the most active apartment markets in the U.S.