Phoenix has become one of the nation’s busiest apartment construction markets, with 23,000 units underway — far exceeding current demand and pushing vacancy rates to nearly 12%. As supply floods the market, rents have dropped by a little over 2% and communities are offering generous move-in incentives. While a slowdown in new construction could stabilize the market by 2026, high-end units face the steepest vacancy challenges, especially in areas like Tempe and Deer Valley.
Source: https://www.bizjournals.com/phoenix/news/2025/05/27/apartment-vacancies-rise-construction-boom.html
