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Northmarq’s latest special report on build-to-rent (BTR) communities highlights Phoenix as the nation’s largest BTR market by transaction volume in 2025. According to the report, nearly 1,500 BTR units in the market changed hands last year, with trades totaling more than $500 million in aggregate value. This level of deal activity positions Phoenix at the forefront of the BTR segment nationally, underscoring deep investor engagement with the product type in the metro.
While capital flows remained strong, operating fundamentals came under pressure. Phoenix’s BTR vacancy rate finished 2025 at 9.8%, a notable increase from the 4.5% average recorded between 2020 and mid-2022. Northmarq attributes the vacancy expansion to a rapid influx of new BTR supply, combined with heightened competition from traditional multifamily properties, which are vying for the same renter pool.
On the supply side, Phoenix played an outsized role in regional BTR development. In 2025, the market accounted for more than 40% of all BTR completions in the West region. More than 7,500 BTR units were delivered in Phoenix over the year, reinforcing the metro’s status as a key concentration point for this emerging rental housing format. The combination of heavy deliveries and robust trading activity signals that investors and developers are treating Phoenix as a core BTR hub.
Looking ahead, the report notes that national BTR market conditions are expected to show modest improvement in 2026 as new deliveries slow. Supply and demand dynamics are projected to rebalance, with national vacancy anticipated to tighten by roughly 50 basis points. Although the forecast is presented on a national basis rather than specific to Phoenix, the expectation of reduced supply pressure provides context for how the broader BTR landscape may evolve after the recent wave of development.
Stakeholders focused on BTR, single-family rental, and multifamily in Greater Phoenix will have an opportunity to hear additional perspectives on these trends at Connect Phoenix Multifamily, SFR & BTR. The event is scheduled for Wednesday, April 8 at The Westin Kierland Resort & Spa in Scottsdale and is set to feature speakers from organizations including Asset Living, National Bank of AZ, Thorofare Capital, Mark-Taylor Companies, Walton Global, Dekker Design, Marcus & Millichap Capital Corporation, and Zonda Advisory.
The post Phoenix Leads Nation in 2025 Build-to-Rent Volume With $500M in Trades appeared first on CRE Market Beat.
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