Demand Outpaces Supply by Over 10% in Desert/Mountains Region

Apartment demand has been strong recently in the Desert/Mountains region, outpacing heightened supply volumes. Nearly 77,000 apartments were completed in the Desert/Mountains region in the year-ending 1st quarter 2025, translating to an inventory growth rate of over 5%. That was the second highest percentage inventory increase nationwide, behind only the Carolinas. At the same time, just over 85,000 units were absorbed in the Desert/Mountains region, which includes Phoenix and Denver. With demand topping supply by about 9,000 units, roughly 11% more units were absorbed across the region than were delivered in the past year. This positive supply/demand relationship helped stabilize occupancy in the past year.

For more information on the state of apartment markets across the Desert/Mountains region, including forecasts, watch the webcast Market Intelligence: Q2 Desert/Mountains Region Update.