Phoenix is the No. 4 metro area in the country for new apartment construction in 2025, according to data from RentCafe.

The metro will add 21,188 units by the end of the year. The only cities adding more units are Austin, Dallas and New York; the latter will add over 30,000 units in 2025.

Most of the Valley of the Sun’s new apartments — over 6,400 — are located in Phoenix proper, followed by Gilbert at 2,102 units and Scottsdale at 2,042. Over 1,000 new units can also be found in Goodyear, Mesa, Avondale, Tempe and Glendale.

via RentCafe

Phoenix isn’t the only southern city packing in new apartments, though. Over half of all new U.S. apartments in 2025 — which equates to over 265,000 units — are located in the south.

“Southern metros typically offer streamlined approval processes and fewer regulatory hurdles, making it easier to bring multifamily projects to market,” explained Doug Ressler, senior analyst and manager of business intelligence for Yardi Matrix. “At the same time, elevated home prices and a shortage of attainable for-sale housing are pushing more residents toward rentals. For many households, single-family ownership is simply out of reach — fueling demand for rental housing.”