Metro Phoenix’s rent frenzy may be waning. One apartment-research firm even showed that rents fell slightly in several Valley cities in August.
A much-needed breakdown of skyrocketing costs and 2% to 3% monthly rent increase Last year and early this year, some help.
Apartment construction is at a 13-year high, which should help ease the tight supply-demand balance.
However, the Phoenix area continues to attract more people, including the majority of renters.
Thomas Brophy, apartment expert and national director of Colliers International of Phoenix, explains why.
Since 2018, 40,000 new apartments have been built in Metro Phoenix, and another 13,000 will be open to renters this year, he said.
“The Phoenix apartment deficit is still at 20,000 units, even though new construction continues,” said Brophy.
This means that demand is still outstripping supply.
Apartment occupancy in the area is currently low at 96.2%, according to Colliers. This compares to his 94.9% in 2018.The rate is the lowest in 50 years 97% at the end of last year.
rent, construction, population
Rents fell in Phoenix, Mesa, Gilbert and Glendale in August, according to ApartmentList.
Rents were flat in Chandler, Peoria and Surprise.
Currently, the median rent in Metro Phoenix is $1,244 for a 1 bedroom and $1,504 for a 2 bedroom.
According to RentCafe, the Valley currently ranks sixth in the number of apartment constructions underway among U.S. subways. The number of units underway in Metro Phoenix is up 90% from last year, the rental listing company reports.
According to demographic data analyzed by Brophy, Metro Phoenix ranked fifth in the country attracting the most young people aged 20-34 between 2015 and 2020. Most people in that age group are renters.
“It could affect anyone”: Experts and locals discuss the need for affordable housing
Metro Phoenix Rent by City
No wonder Scottsdale has the highest rent. Worryingly, however, rents are rising in once-affordable West Valley cities. NIMBYism We are stopping the much-needed apartment development.
Median rent for a one-bedroom apartment in Phoenix fell 0.3% month-on-month to $1,240 in August, according to ApartmentList.
Typical rent for a one-bedroom in Mesa is now $1,310, also down 0.3%.
Chandler’s median one-bedroom rent is $1,540 and remains constant through July and August.
One-bedroom rents in Glendale are typically $1,200, down 1.3%.
Scottsdale one-bedroom rents are $1,550, up 0.4%.
In Gilbert, the median one-bedroom price is $1,470, down 0.9%.
The average cost of a one-bedroom in Tempe is $1,410, up 0.9%.
Rent for a one-bedroom in Peoria is typically $1,540, flat since July.
In Surprise, median rent is also flat at $1,480.
Avondale’s typical one-bedroom rent is $1,520, up 0.6%.
Help for renters
In most cities in Phoenix, service workers, teachers and first responders can’t afford rent, according to Elliot Pollack, a local economist who has analyzed the housing market.
Here are some tips for renters navigating the still hot rental market.
- Flexible location and amenities
- Try to resolve any credit issues before applying for a rental
- Prepare security deposit and first month’s rent
- Be prepared to act fast as the apartment will be rented soon
Housing advocates say there are several things that can help tenants pay rent, including potential rent regulation laws, efforts to work with neighbors who oppose multifamily projects, and more funding for affordable rentals. I have an idea for
A big problem for many renters, however, is that most of the new apartments built since 2018 are luxury complexes that are out of reach for much of the public.
Of the 8,000 Phoenix-area apartments built last year, only about 1,100 were submarket-rent affordable or employee apartments, reports ApartmentList.
that’s partly why Evictions hit 13-year high In August.
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