Phoenix apartment rents remained flat in February

Article originally posted on CoStar on March 5, 2026

The average asking rent for Phoenix apartments remained unchanged in February, maintaining the slow-and-steady performance seen over the past few months.

Stabilization comes on the heels of back-to-back monthly gains in December and January, resulting in a 0.3% rent increase in the three-month period ending in February 2026. While recent growth is underwhelming for a market that regularly notched monthly gains of 0.3% to 0.5% before the pandemic, it marks a reversal from the trend seen through most of 2025, which saw steady rent cuts.

Gains were essentially flat across the quality spectrum. Monthly growth was range-bound between negative 0.1% and 0.1% in all three of the primary segments: four-and-five-star, three-star, and one-and-two-star.

Performance across geographies, however, was more nuanced.

The pricey North Scottsdale neighborhood was an outperformer. The submarket recorded a 0.5% month-over-month increase in asking rents in February, bringing one-bedroom rents to about $1,925 per month. That amount is the highest of any Phoenix submarket and about 40% higher than the metro-wide average.

On the other side of the metropolitan area, the North West Valley saw rent cuts. The area, which includes places like Surprise, Sun City, El Mirage and Peoria, recorded a 0.8% decrease in asking rents in February, with one-bedroom units now averaging under $1,250 per month.

Furthermore, concession usage remains broadly elevated across the Greater Phoenix area. More than 70% of Phoenix multifamily properties offered new renters some form of discount in early 2026, compared with about 43% nationwide. While the pace of completions is expected to ease this year, concession usage could remain pervasive as operators look to stay competitive while the market takes time to digest record completions in 2024 and 2025.