Rent prices dropping across Phoenix metro area: Here's why

Rent prices falling across Phoenix area: Report

A new report shows the price of rent across the Phoenix area is falling, and FOX 10;'s Jacob Luthi has more on what's driving the lower prices, and whether the trend will last.

PHOENIX - A new report shows the price of rent across the Phoenix area is falling, something that many have been waiting for.

By the numbers:

A new Phoenix metro report from Zumper shows rent prices are dropping in nearly every city across the Valley. Their data include the average rent for a one-bedroom in the following Valley cities, and their decline from 2025.

• Glendale: Down more than 14%
• Phoenix: Down just over 6%
• Tempe: Down just over 2%

What they're saying:

We asked two renters on what they think about their rent.

"I'm paying like $2,300 a month for a one-bedroom, 700 square feet. Yeah, it's just too much," said Tempe renter Arian Afshar.

"I have it lucky. It's so cheap. I have a two-bedroom, two-story townhome, and it's like $1,100 a month," said one renter in Phoenix.

Local perspective:

We asked Mark Stapp of the W.P. Carey Center for Real Estate and Finance at Arizona State University on why rent is falling.

"So coming out of the pandemic, in particular, there was a significant surge in multifamily unit permits issued," said Stapp.

Stapp says a multifamily construction boom in the Valley has led to more available units than renters can absorb.

"Since 2022, we've had over 60,000 new rental units in the Valley ... in the last year, we have about 27,000 new rental units," said Sindy Ready of RE/MAX Excalibur.

It's gotten to the point, Ready says, that landlords are having to get creative to fill the units.

"They'll throw in incentives to make it worth someone's while. There was one complex that was offering a $200 discount on the rent if someone did 17 months instead of 12 months, so they're all just trying to get creative," Ready said.

Looking Ahead:

Experts, however, say the relief for new renters might be short-lived.

"Absorption is going up, so that means occupancy is going up, and it's not going to be long ... you'll get through this year ... going into next year, and rent's going to go back up again," Stapp said.