Phoenix’s rental market held steady in Q1 2025, with stable pricing, rising inventory, and modest improvements in leasing speed. While concessions remain elevated compared to national averages, increased listing activity and stronger spring demand signal growing momentum.
Rents fluctuated slightly, with one-bedroom units declining and three-bedroom and single-family homes seeing increases. These shifts reflect ongoing renter preferences for more space, even as affordability concerns persist. Inventory also saw a significant uptick across most property types, offering renters more options as peak season approaches.Leasing activity improved, particularly for single-family homes, which spent fewer days on the market. While time on market in Phoenix is still longer than national averages, the trend suggests improving renter engagement and stronger competition for quality listings.
Looking ahead, most property managers expect rents to remain stable, pointing to a balanced market in the near term. However, high concession rates and rising maintenance costs remain factors to watch, especially in an increasingly competitive environment.
For now, Phoenix’s rental market appears resilient, with expanding supply and signs of renewed renter interest heading into the busy spring and summer months.
Continue reading for detailed insights into Phoenix’s rental landscape, including rent trends, leasing activity, property manager sentiment, and more.
In Phoenix, 97% of property managers expect rent prices to remain the same over the next six months, with only 2% anticipating an increase and 1% expecting a decrease. This near-unanimous outlook suggests strong price stability in the market. On the demand side, 77% of property managers report a consistent number of applicants for their rentals, while 19% are seeing more interest and 4% are experiencing a decline. Overall, Phoenix appears to be a steady rental market with minimal fluctuations in both pricing and demand.
In Q1 2025, 56% of Phoenix rental listings featured concessions, holding steady from the previous three quarters and double the national average of 28 percent. This consistent trend signals that rental demand remains soft and landlords continue to rely heavily on incentives to fill vacancies.
Phoenix saw improvement in leasing speed during Q1 2025. Single-family homes spent 25 days on the market, down from 32 days in Q4 2024, while multifamily units averaged 29 days, a slight drop from 31. Despite this progress, Phoenix rentals continue to sit longer than the national average, suggesting lingering renter hesitation or oversupply.
Rents in Phoenix fluctuated in Q1 2025. One-bedroom units declined again to $1,300, continuing a slow slide since early 2024. Two-bedroom and multifamily rents held steady at $1,595 and $1,500, respectively. The only notable increase was in three-bedroom and single-family homes, both climbing back to Q2 2024 highs, with single-family homes reaching $2,050.
Inventory growth returned in Q1 2025 after declines in the previous quarter. One-bedroom and multifamily listings saw healthy growth by 19.3% and 18.6% respectively, while two- and three-bedroom units increased by 19% and 13.1%. Single-family listings increase slightly by 7.7%. These gains point to renewed listing activity ahead of peak rental season.
This guest chart, courtesy of Snaptimate, illustrates regional cost trends for a typical residential unit turnover. The sample scope is for an 800 single-family unit and includes interior painting, carpet replacement, and resurfacing a pressure-treated deck. While the Northeast remains the most expensive region, the West is rapidly catching up with a 3.8% quarter-over-quarter increase - the highest in the country. Turnover costs are rising nearly everywhere, with 95% of markets analyzed showing upward movement. In the Phoenix market specifically, costs increased by 0.86%. In this work scope labor costs made up the bulk of the total, so wage inflation had the greatest impact on overall increases. The effect of tariffs on construction materials remains unclear, but it will be a key factor to watch in the coming quarters.
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 Q1 2025 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
Snaptimate (www.snaptimate.com) is an app that delivers instant, localized cost estimates for residential repairs, replacements, and renovations—tailored specifically for real estate professionals. It is fueled by the same data trusted by contractors for more than 20 years in the nation’s #1 estimating platform.
