Phoenix apartment construction outpaces demand, pushing vacancy rates higher Article originally posted on Phoenix Business Journal on May 28, 2025 The Phoenix metro has become one of the most aggressively built apartment markets in the nation, and vacancies are climbing as the new supply coming online is outpacing demand. The recent Q1 2025 Multifamily Market Report for the Phoenix market from real estate investment firm Matthews found that about 23,000 apartment units were under construction during the first quarter, which amounted to 5.5% of existing inventory in the market. That share made Phoenix the sixth most-active apartment market in the United States for construction, according to the report, which used data from CoStar Group. Phoenix remains a top 10 market for demand amid continued strong population growth, with 18,000 units of net absorption over the past 12 months. But construction has outpaced even that growth, resulting in rising vacancy rates, lowering rents and landlords giving out more incentives. Find Complete Article Here: https://www.bizjournals.com/phoenix/news/2025/05/27/apartment-vacancies-rise-construction-boom.html?cx_testId=40&cx_testVariant=cx_9&cx_artPos=3#cxrecs_s