Phoenix-area rent prices dropping due to construction boom
Apartment construction surge biggest since 1980s
PHOENIX (AZFamily) — Rent prices across the Phoenix area are dropping, sparked by a construction boom in multifamily housing not seen in more than 40 years.
In 2023, developers built 13,500 apartments in Maricopa County. In 2024, that number rose to 20,000 apartments. This year, the number is expected to hit 26,000 new apartment units.
“We haven’t seen that kind of levels since the 1980s, in terms of just the percentage,” said Doug Ressler, who is the manager of business intelligence at Yardi Matrix, a company that tracks real estate and development trends.
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According to Yardi’s National Multifamily Report, the supply of rental units is catching up with the demand. The result is that rent prices in the Phoenix market have dropped 2.2% this year. The average cost of a rental apartment has dropped by $46 per month since last year. The occupancy rate has also dropped by 0.4%.
This is a stark change from the years of rent increases that sometimes reached as much as $400-$500 per month.
“In the Phoenix area, we see a continuing deceleration of rents. And what that means is it’s become more consumer-friendly for renters. They have a lot more options to choose from, because there’s more supply coming in,” said Ressler.
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