The Phoenix multifamily market is navigating a period of dislocation. Apartment demand has downshifted
from the record level seen in the two years following the onset of the pandemic to a much more moderate
pace as high inflation and economic uncertainty stall the launch of new renter households. At the same time, the sizable construction pipeline is delivering thousands of new units every quarter, overwhelming demand. this imbalance caused an upswing in vacancy rates and pushed rent growth into the red.

Although the market has swung from one extreme to the other over the past three years, the underlying demand drivers that fueled The Valley’s strong performance over the past decade remain in place. In 2022, Maricopa County once again led the U.S. in absolute population growth for the third straight year, reiterating the metro’s strong demographic profile. The expanding and diversifying local economy coupled with a structural shortage of housing also provides long-term tailwinds. For more on the current state of the Multifamily market keep reading below!