After a turbulent few years, the Greater Phoenix multifamily market appears to have found the bottom and stabilized—with value-seeking buyers increasing activity in an environment with more favorable financing rates. We are still seeing properties that are in default or notice for default, and that have come down in value 20% to 25% from the market peak at the end of 2021/early 2022. In particular, the buying opportunities can be found where property owners financed during those periods and are unable to refinance at this particular time.
According to Yardi Matrix, Phoenix experienced $3.3 billion in multifamily investment sales through the first three quarters of 2025: 60 properties trading at an average per-unit price of $270,114. That is $300 million higher than the same point in 2024, and a total of 8 more deals—although the per-unit price is down from $283K.
Notable Multifamily Transactions in Greater Phoenix
Some of the key deals during the past few weeks include:
- The Avi, a 196-unit complex in Tempe—at $40 million, a significant discount from the previous $66.5 million paid in 2022.
- Echo Biltmore, a 215-unit apartment complex in the Camelback Corridor built in 2024, sold for $71.3 million.
- Cimarron Apartments, a 210-unit complex in downtown Mesa, sold for $33 million.
- Emparrado Apartments, a 154-unit apartment community in Mesa, sold for $24.25 million and will be renovated and rebranded as Rise Mountain Ridge.
- Camden Copper Square Apartments, a 332-unit community in downtown Phoenix, sold for $77 million.
- Monument, a 163-unit community in Chandler, Ariz., sold for $46 million, an 18% loss from its previous sale in 2021.
What Lies Ahead for Phoenix Multifamily?
The latest CoStar figures indicate that the Valley recorded 15,000 units of net absorption in multifamily during the past 12 months, outpacing the pre-COVID 5-year annual average of 7,200 units—putting Phoenix in the top 10 markets in the US for demand formation. Asking rents have decreased 3.5% year over year, with more than 60% of communities offering discounts. At 13%, vacancies remain well above the 9% historical average, with class A properties sitting at 14.5 %.
Behind the numbers is the same challenging environment that we have seen in the past few years: historic levels of construction, with nearly 23,000 units delivered in the past 12 months and 21,000 units in the pipeline. Going forward, a pullback in construction starts suggests an easing of supply pressure by late 2026, which should allow the start of a recovery to form. In addition, multifamily capitalization rates may begin to decrease in 2026, a sign of easing distress, improving credit conditions, and higher renter demand.
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