Phoenix, AZ Multifamily Market Report Q3 2026

Pipeline Holds 5.0% of Inventory, but Vacancy Edges Down to 5.4%

Demand

Phoenix absorbed 3,073 units in Q3 2026, against 4,146 in the same quarter last year. Vacancy is 5.4%, 46 bps tighter than Q3 2025. Chandler/Gilbert is the tightest submarket at 4.5% vacancy; Deer Valley leads rent growth at +3.5%. Trailing-12-month absorption of 18,591 units is down from 28,078 a year earlier. Rent of $1,488 is down 0.3% year over year and 11.4% below the Q3 2022 peak of $1,679.

Supply

Phoenix recorded 3,691 units of completions in Q3 and 18,410 over the trailing twelve months (-23% versus the prior TTM period). Units under construction equal 5.0% of inventory, concentrated in Deer Valley at 11.7% of its stock. Annual completions peaked at 25,121 units in 2024. Q3 deliveries were 36% below last year’s 5,787. The 23,571-unit pipeline equals about five quarters of absorption at the trailing pace.

Investment Market

Phoenix recorded $4.0B in sales over the trailing twelve months, -8% against the prior TTM period; Q3 accounted for $809M. The high-water mark in this series is $17.5B in 2021.

Phoenix cap rates average 5.18%, up for 19 straight quarters. Pricing sits at $242k per unit, lower for 4 consecutive years. The cap rate is 108 bps above the Q4 2021 low of 4.10%.