Investors & Rentals Update

Market News
Written By Jennifer Patel

🏘️ Rental Market: Softening but Still Stable

Rents dipped slightly across most Phoenix sub-markets this week. Single-family rentals continue to outperform multifamily, where vacancies keep rising—especially in new mid-rise and downtown buildings with heavy supply.

📉 Vacancies & Investor Strategy

Vacancy rates remain highest in Class A multifamily, while single-family rentals remain the most resilient. Investors across Mesa, Phoenix, and Glendale are increasingly turning to ADUs, thanks to more flexible zoning and strong tenant demand for smaller, affordable units.

🏢 FHFA Raises 2026 Multifamily Caps — What This Means

FHFA announced a 20%+ increase to Fannie Mae and Freddie Mac’s multifamily lending caps for 2026.

Here’s the quick impact:

  • More financing availability → lenders can support more multifamily deals.

  • Better pricing + more competition → especially for mid-size and workforce housing.

  • Stabilization for existing projects → more options for refinancing maturing debt.

For Arizona investors: This means more liquidity for apartment purchases, value-add projects, BTR communities, and ADU-supported rentals—especially in growth corridors like the Southeast Valley and West Valley.

💼 Employment: Stability Supports the Market

Healthcare, logistics, and distribution hiring continues to anchor the local economy. This stability helps keep rental demand from weakening further.

🎄 Seasonal Slowdown: Motivated Buyers Still Move

Holiday season = fewer casual shoppers, but serious investors and rental buyers remain active—especially when paired with incentives, concessions, or softer pricing in multifamily.

Sources

Jennifer Patel
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Arizona Market at a Glance