Phoenix Renters Gain Leverage as Landlords Offer Concessions

Written by:

Alejandra Rodriguez

Date:

04 Mar 2026

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After years of rising rents and fierce competition for apartments, Phoenix renters are now finding the market has shifted in their favor. Landlords are offering move-in specials, waiving pet fees, and reducing rents to fill units that are sitting vacant longer than expected. For tenants waiting for a better deal, the current environment presents new opportunities.

Thomas Johnston, Executive Director of the Center for Real Estate and Finance at Arizona State University, has been monitoring these developments. He identifies three main factors behind the recent changes in the Phoenix rental market, each giving renters more negotiating power than they’ve had in recent years.

1. Landlords Are Offering More Concessions

After an extended period of steady rent increases, Phoenix landlords are now actively seeking tenants by offering incentives. Move-in specials such as a month of free rent, waived application and pet fees, and flexible lease terms are now common. Units that previously rented within days are now remaining vacant for three weeks or more. The city’s vacancy rates have increased to levels last seen before the pandemic.

Johnston notes that this shift has given renters a significant advantage. “Renters have real leverage for the first time in years,” he says. Those signing new leases or renewals are now in a position to negotiate for lower rents, better amenities, or more favorable lease terms. The dynamic has changed from landlords controlling the market to landlords competing for tenants.

2. A Surge in Multifamily Construction

Phoenix has experienced a boom in apartment construction over the last several years, and many of these new buildings have recently opened. This influx of new units has created a sudden surplus, providing renters with more choices than they have had in a long time. Instead of settling for what’s available, renters can now compare multiple properties based on location, amenities, and price.

This increased supply has intensified competition among landlords. “The multifamily market is going to take some time to recover,” Johnston explains. For renters, this means greater flexibility and bargaining power. Landlords, aware that tenants have more options, are offering better deals and showing a greater willingness to negotiate to keep their properties filled.

3. Rental Rate Growth

For the first time in several years, Phoenix rents are no longer increasing at the rapid pace seen during the pandemic and the immediate post-pandemic period. In some neighborhoods, average rents have actually declined compared to the previous year. Landlords who once expected annual rent hikes are now adjusting their strategies, pricing units more competitively to avoid prolonged vacancies.

This change benefits renters who were previously priced out of certain neighborhoods or buildings. Landlords are now more open to negotiating on price, especially for units that have remained empty. “They don’t want to lose a good tenant over a few hundred dollars a month,” Johnston says. As a result, renters who revisit previously unaffordable complexes may find new opportunities for savings.

Key Factors to Watch

Looking ahead, several developments could further influence the Phoenix rental market:

If vacancy rates remain high for another quarter, landlords may further increase concessions, potentially offering 2 months free rent or deeper discounts for longer leases.

The opening of additional new apartment buildings in popular neighborhoods will likely add to the supply, giving renters even more leverage in negotiations.

A significant drop in mortgage rates could prompt some renters to purchase homes, reducing rental demand and eventually tightening the market. However, current mortgage rates remain elevated, so this shift has not yet occurred.

Why This Matters

The current shift in the Phoenix rental market follows several years of rapid rent growth and limited supply, driven by population growth and high demand during the pandemic. Rising interest rates, an influx of new apartment construction, and a slowdown in household formation have reversed these trends, increasing vacancy rates and weakening landlords’ pricing power. These conditions have created a window of opportunity for renters to secure better deals.

The Bottom Line

Phoenix renters now have more leverage than at any point in recent years. Landlords are competing to fill vacant units, leading to better deals, increased flexibility, and real savings for tenants who are willing to negotiate or compare multiple properties. Whether you are searching for a new apartment or renegotiating a lease, current market conditions favor renters who take the initiative to request concessions.

About the Expert: Thomas Johnston is Executive Director of the Center for Real Estate and Finance at Arizona State University in Phoenix. With over 25 years of experience in commercial real estate brokerage, property management, and investment sales, Johnston combines academic research with practical market insights across all real estate sectors.

This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.