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Construction boom may help slow Phoenix-area rent growth in 2024

After years of explosive rent growth, the Phoenix area saw prices fall slightly in 2023. Tenants in the Valley can expect another year of slower rent increases in 2024, according to the multifamily housing research group Yardi Matrix.

In its  2024 rent forecast, Yardi Matrix reports there’s a nationwide boom in apartment construction happening right now.

The firm notes metro Phoenix  saw a record number of units added in 2023 and could see another record this year. In fact, it says Phoenix is likely to have one of the largest increases in housing stock among U.S. cities this year, with  more than 17,000 new units expected

That boost in supply could mean another year of slower rent growth. The report projects Phoenix-area rents will increase about 1.3% this year — a slightly smaller increase than the projected national average of 1.5%.

That would be a major difference from just a few years ago.  As of 2020, Yardi Matrix reported Phoenix was leading the nation in rent growth, with year-over-year increases of more than 7%. 

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Katherine Davis-Young is a senior field correspondent reporting on a variety of issues, including public health and climate change.