Phoenix apartment rents continue downward slide

Multifamily rents took another step backward last month as supply-side pressure continues to hamper Phoenix property performance.

The average asking rent fell 0.4% in August, marking the sixth-consecutive month with decreases and the worst month-over-month decline since November 2023.

Intense competition from new supply has prompted many operators to lower rents to attract residents. Over 20,000 units were finished in the 12-month period ending in the second quarter, the highest annual total in decades. For comparison, Phoenix averaged about 7,400 units of gross completions from 2015 to 2019.

With the bulk of development focused on luxury properties, rent losses have been most acute in the four- and five-star segment. Class A rents are down 0.7% year to date through August, compared to a 0.9% increase in the workforce housing segment and a 0.3% gain among mid-priced properties.

Source: https://www.orionprop.com/topfive/phoenix-apartment-rents-continue-downward-slide/