The Phoenix rental market in Q4 2024 exhibited a mix of trends, with some areas showing signs of softening as the year ended. Listing counts across all property types saw declines, signaling a tightening of available rental inventory. Despite this reduction, rent prices remained relatively stable overall, with modest declines for one-bedroom and multifamily units. Leasing activity slowed, with average days on market rising as seasonal demand cooled. In response to this, landlords increased concessions significantly, offering more incentives to attract tenants. These shifts suggest that, while Phoenix remains a competitive rental market, some signs of moderation are emerging as 2025 approaches.
We asked property managers in the Phoenix area for insights into the market.
Key Takeaway: In Phoenix, property managers expect rents to remain stable, with 90% anticipating no change in pricing over the next six months.
Data Summary:
Data Summary:
Deeper Diver: The Phoenix rental market appears to be in a phase of stability, with most property managers not expecting significant changes in rent prices. The high percentage (90%) of managers who foresee rents remaining the same reflects a cautious optimism in the market. At the same time, the demand for rental units is holding steady, with the majority (81%) of managers seeing similar application numbers as before. However, a portion of property managers (14%) is noticing a slight dip in applicants, which could indicate a mild cooling in some segments of the market. This presents an opportunity for property managers to maintain pricing stability while considering strategies to boost demand, such as enhancing property features or expanding marketing efforts.
Key Takeaway: Concessions continued to rise in Phoenix during Q4 2024, with landlords offering more incentives to attract tenants during a seasonally slower period.
Data Summary:
Deeper Dive: This increase in concessions reflects the rising competition in Phoenix’s rental market, as landlords work harder to fill vacant properties during a time when leasing activity traditionally slows.
Key Takeaway: Leasing times increased in Q4 2024, consistent with typical seasonal slowdowns in rental demand.
Data Summary:
Deeper Dive: The increase in days on market indicates that, while rental demand may be stable, it is slowing toward the year’s end, with fewer tenants seeking to move in before the holidays.
Key Takeaway: Rent prices showed slight declines across most property types, with one-bedroom and multifamily rents seeing notable drops.
Data Summary:
Deeper Dive: Rent prices saw moderate declines, with one-bedroom and three-bedroom units especially impacted. Multifamily rents also decreased, indicating some softening in the market. These rent declines suggest a more cautious rental environment as the market heads into 2025, with landlords adjusting prices in response to slower leasing activity.
Key Takeaway: Rental inventory in Phoenix saw declines across all property types in Q4 2024, signaling reduced availability in the market.
Data Summary:
Deeper Dive: Phoenix rental listings continued to decline in Q4 2024, with all property types experiencing decreases. This overall reduction in listings may have contributed to the rise in rental prices and increased competition, limiting tenant choice in Phoenix.
Rental data used in this report are sourced and catalogued directly by Rental Beast, unless otherwise noted. Rental Beast listing data covers a range of rental property types and owner types operating within the long-term rental market (generally considered to be leases with a minimum of three months). Data provided courtesy of Arizona Regional Multiple Listing Service, Inc. Single-family rentals are considered to be properties with 4 or fewer units. Multifamily is more than 4 doors. Unless otherwise noted, our analysis uses the Phoenix-Mesa-Chandler, AZ, metropolitan statistical area (MSA) as the geographical unit.
Unique listings counts are based on rentals that were on-market at any point during the stated period. Rents are calculated based on these listings. Days on market (DOM) and concession analysis are based on these listings, with some data sources excluded due to DOM and concession info being unavailable or deemed to be unreliable. Concessions are incentives that entice renters to sign a lease (e.g., one month free, a gift card, etc.).
Our sentiment survey is based on phone conversations during Q4 2024 with rental building and community managers and property managers. Questions and answer choices:
DISCLAIMER. This report attempts to provide reliable and useful information; however, there is no guarantee that the information or other content in this document is accurate, current or suitable for any particular purpose. All content is subject to change without notice. All content is provided on an “as is” basis, with no warranties of any kind whatsoever. Rental data used in this report are sourced and catalogued directly by Rental Beast, unless otherwise noted. Our analysis uses MSA as the geographical unit and is not reflective of all-U.S. measures. Information from this document may be used with proper attribution. ©2025 by Rental Beast
