Phoenix apartment rents continued to slide in November

Article originally posted on CoStar on December 8, 2025

Phoenix apartment rents slipped another 0.4% in November, extending the market’s losing streak to 10 consecutive months. Asking rents are now down 3.2% year-to-date, double the 1.6% decline recorded during the same period in 2024.

Most of the recently completed rental complexes are in high-end communities. That wave of luxury supply is weighing on fundamentals at the top end of the market. Asking rents at four- and five-star apartments fell 0.5% in November and are down 3.3% year-to-date, as operators compete aggressively to fill new units. This weakness has extended to mid-tier properties, too, with rents down 0.4% in November at three-star-rated apartments. Last month’s result brings the year-to-date rent loss to 3.7%, the most of any segment. While these communities face less direct competition from new luxury deliveries, pricing adjustments have been necessary to remain competitive as renters consider heavily discounted Class A communities.

Lower-tier one- and two-star properties remain the most insulated, holding flat in November. These older, more affordable communities have been somewhat shielded from new supply, but even they are not immune to the broader market dynamics, with rents down 1.9% year-to-date. Operators in this segment report increasing use of concessions and targeted discounts to retain residents, particularly in submarkets with heavy construction activity.

Overall, approximately two-thirds of properties across Phoenix offer some form of discount, compared to about 40% nationwide. Concessions often range between six- and eight weeks, with an increasing number of properties extending beyond that.

Local property management professionals report that concessions at the time of renewal are also more common, as operators remained focused on maintaining occupancy at the expense of revenue growth.