Phoenix 1Q24 Multifamily Market Insights Report: Vacancy ticks lower, but supply-side pressures loom


  • The Greater Phoenix multifamily market posted some modest improvement during the first quarter, with results boosted by a strong local economy and some seasonal leasing factors. New supply growth is expected to remain a prominent force in the market through the remainder of the year and into 2025.
  • For the first time in more than two years, area vacancies dipped during the first quarter, falling 20 basis points to 7.2%. The recent improvement did not reverse the longer-term trend; year over year, vacancies in Greater Phoenix are up 80 basis points.
  • After trending lower in the second half of last year, rents inched higher to start 2024. Average rents posted a gain of 0.8% in the first three months of the year. Still, at $1,587 per month, rents are down 1.7% from levels recorded one year ago.
  • Fewer properties traded in the first quarter, and newer assets accounted for approximately half of the total transaction mix. The median sales price reached $324,700 per unit to start the year, with cap rates ranging between 5.25% to 5.75%.  

Read the report, or contact our Phoenix office to learn more.