The Phoenix apartment market extended its rent-losing streak last month as supply-side pressure and persistently elevated vacancy hamper rental rates.
The average asking rent fell 0.4% in November, marking the ninth-consecutive month of declines. As a result, apartment rents are now down 2.1% through the first 11 months of the year, underperforming the same period in 2023, which saw a 1.7% retreat.
The Valley has been contending with a multidecade-high wave of construction, negatively impacting property performance. Over 24,000 gross new units are slated for completion in 2024, more than triple the five-year, pre-pandemic annual average of about 7,300 units.
Though renter demand has bounced back swiftly this year, the pressure from oncoming supply continues to overwhelm leasing, keeping overall vacancy high and rent growth negative. The bulk of supply additions have been Class A properties, disproportionately impacting rents in this segment.
