Arizona Rent Is Getting Cheaper as Building Boom Provides Relief
Arizona renters are finally catching a break.
After years of rising prices, rent costs are now on the decline thanks to a historic construction surge that has expanded housing options for families and individuals across the state.
According to Yardi Matrix, the Phoenix area is undergoing its largest rental construction boom since the 1980s.
Developers in Maricopa County built an estimated 13,500 new apartment units in 2023, followed by 20,000 last year and an unprecedented 26,000 units projected this year, the real estate company reported.
This rapid growth is reshaping the rental market — with positive results showing up in renters’ wallets.
So far in 2025, average rent prices have dropped 3.4% in Phoenix, with the average rent now sitting at $1,975, a $120 drop from the prior year, according to Zillow.
The result has been that Phoenix is now more friendly to renters’ budgets than nine out of 10 of the U.S.’s largest cities, Wallethub found.
“We’re seeing a continuing deceleration of rents in the Phoenix area,” said Doug Ressler, manager of business intelligence at Yardi Matrix. “It’s become more consumer-friendly for renters. They have a lot more options to choose from because there’s more supply coming in.”
Rent Dropping Across Arizona
This is a major shift from just a few years ago when Arizona’s housing shortage reached a critical point, forcing renters to make difficult choices.
The state’s aggressive efforts to expand its housing supply are beginning to pay off, with rents becoming more affordable compared to other large U.S. cities.
The momentum is not limited to Phoenix.
Goodyear, Peoria, Surprise, and Chandler all ranked among the Top 20 most affordable, fastest-growing cities in the U.S., in a recent study by GOBankingRates.
Elsewhere in Arizona, Tucson rent prices have continued to fall, dropping 1.4% since 2024, with the median now at $1,009 per month, according to Apartments.com. And Flagstaff rental costs have edged down, with the average decreasing 0.6% year-over-year to $1,759 per month.
These trends are expected to continue as more units hit the market.
Housing experts emphasize that the state’s success is largely tied to a simple principle: building more housing works.
“Increasing the supply of housing units can reduce rents,” Sara C. Bronin, a professor at Cornell University, said. “Communities that produce plenty of housing improve conditions for renters because landlords must compete for tenants, often by lowering prices.”
Pro-Development Policies Work
Experts say zoning flexibility and suburban expansion are key to housing affordability.
Unlike many coastal states with restrictive land-use policies, Arizona’s suburban areas provide more affordable land and faster permitting processes, making it easier for developers to build quickly.
“With rents continuing to fall and the cost of buying a home remaining high, renting a home is now a more cost-effective option in all major U.S. markets,” Realtor.com Chief Economist Danielle Hale said.
While challenges like rising construction costs and high interest rates persist, Arizona’s proactive approach shows that building more housing — especially diverse, rental-friendly options — is a powerful tool to keep rents manageable and meet the needs of a growing population.
With thousands of new apartments on the way and a growing build-to-rent single-family home market, renters across the state can expect continued relief. Experts say the key to keeping rents affordable long-term is to keep building — a strategy our state is proving can work.
Arizona’s ongoing expansion provides a valuable blueprint for other regions battling affordability issues.
