phoenix – The rental market has cooled, but not enough to significantly affect affordability.
A typical rent in Phoenix is $1,938, according to Zillow senior economist Jeff Tucker. A renter today has to spend 20 more hours paying rent than he did five years ago. But rental prices are no longer rising either.
“Rent growth in the Phoenix area has slowed significantly,” Mr. Tucker said. “[A] A typical Phoenix area renter has to devote the first 61 hours of the month to work just to cover the rent. ”
The reason rents are flat is because people are finding alternative options, such as moving or moving in with roommates or family to make it more affordable, Tucker said.
“Now that renters have done that, it’s putting the brakes on rent growth,” Tucker said. “Unfortunately, it is not enough to bring rents back to pre-pandemic levels.”
Some move from Arizona for more affordable rent
“They’re getting too expensive,” said Phoenix’s Ken Haynes.
Haines, who has lived on Roosevelt Row in downtown Phoenix for the past two years, says the rent is enough to convince him to move. Even though the rent is dropping, his apartment is still too expensive.
“We are currently moving to Texas, where a two-bedroom, two-bathroom apartment will cost $1,200,” Haynes said.
Haynes is well above average rent, and says his rent has gone up $400 in the last year.
“It’s getting out of control,” Haynes said. “When I first moved here, the rent was relatively cheap. Now it seems like I really need a second or third job to keep up with the rent and do other things.”
We also asked Zillow experts about when prices will be affordable again. He said he doesn’t expect them to drop dramatically. Instead, prices are likely to level off over the next few years.
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