Phoenix Developers Offered Rental Perks to Lure Tenants
As vacancies hit 10.7% in Q3 2026, renters in Phoenix may find incentives like waived fees and free rent.
Updated on Oct. 14, 2026 in Apartments
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Following an oversupply of over 63,000 units delivered between 2022 and 2026, multifamily developers in Phoenix are currently offering aggressive rental concessions to attract student residents. These incentives have become common as the local market works to absorb the influx of new housing stock.
Why it matters
The high volume of new apartment deliveries created a surplus that peaked with a 12.6% vacancy rate in 2025. This market condition forced property managers to offer competitive move-in perks to maintain occupancy levels.
Developers delivered 40,000 units in the last two years alone, contributing to a 10.7% vacancy rate as of Q3 2026. Meanwhile, the University of Arizona is developing an on-campus dorm with a capacity of over 1,300 students to address housing needs.
The players
University of Arizona
A major public research university currently expanding on-campus housing capacity by 1,300 beds.
The details
To compete for tenants, buildings are bundling incentives such as gift cards, waived security deposits, and administrative fees. Management is also leveraging amenities like coworking spaces, fitness centers, and parking garages to attract renters. These concessions act as a buffer while the broader Phoenix market absorbs the record number of units built over the last four years.
Timeline
Over 63,000 multifamily units were delivered in Phoenix from 2022 to 2026.
The multifamily vacancy rate reached a peak of 12.6% in 2025.
The vacancy rate was 12.1% in Q3 2025.
The vacancy rate was 11.4% in Q2 2026.
The vacancy rate reached 10.7% in Q3 2026.
The Home Front
The current environment marks a significant shift from a period of extreme supply constraints to one of landlord-led concessions. Renters may find more leverage in negotiations until the local market fully balances the record-high inventory levels established since 2022.
If you are currently searching for an apartment, specifically ask leasing offices if they have active promotions like waived application fees or free rent. Keep in mind that these offers are most prevalent in high-density submarkets like Downtown Phoenix, Tempe, and the Southwest Valley.
The takeaway
Renters currently hold a rare advantage in the Phoenix market due to the high volume of new inventory. When touring properties, explicitly request a list of move-in incentives, as many developers prioritize occupancy over initial lease pricing to stabilize their new buildings.
Further reading
For more on finding a place in the valley, visit our Apartments section.
Source note: This article includes information reported by Bisnow.
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If you were a student, would you choose off-campus apartments over university housing to save money?
