Apartment Rents Climb Faster In Metro Phoenix Than Anywhere In The US

Dated: 06/07/2019

Views: 1318

Apartment Rents Climb Faster in Metro Phoenix than Anywhere in the U.S.

 Article originally posted on AZ Central on March 22, 2019

The Broadstone, one of downtown Phoenix's new apartment complexes in the heart of Roosevelt Row has sold for $84.2 million.

Apartment rents climbed faster in metro Phoenix than anywhere in the U.S. during the past year.

The average monthly cost to rent in the Valley jumped 8.1 percent, more than twice the rate U.S. rents climbed.

That increase added $103 to the average apartment renter’s monthly bill, according to national apartment research firm RealPage.

The U.S. average rent climbed by 3.4 percent, or $60 a month, during the past year.

The recent rent hike comes after almost five years of similar increases for apartment dwellers in the Phoenix area.

Renters squeezed

Many Valley renters whose incomes aren’t keeping pace are feeling squeezed as there are fewer affordable options. Some have opted to find more roommates.

More than 46 percent of Phoenix-area renters pay more than 30 percent of their income for a place to live, according to the national study from the Joint Center for Housing Studies at Harvard.

The threshold for whether someone can afford a rent or mortgage payment is if it costs them less than one-third of their income.

Too many luxury apartments?

More than 8,000 apartments were built across the Phoenix area last year, and another 8,500 new ones are expected to open to renters this year.

But most – about 87 percent – of all the new apartments are luxury with rents averaging much higher higher than $1,000 a month that almost half of all Valley renters can afford based on incomes.

If the new apartments don’t fill up because not enough people can afford them, then rents could dip.

“It will get harder to maintain sky-high rent growth in Phoenix as apartment building activity continues at an aggressive pace,” RealPage Chief Economist Greg Willett said.

Check out the rents by city below.  If you have any concerns about rent vs buying I have an article about this in my blog section and i can help you with that decision.

Call me at 480-466-4917

Jay Bru

jay@jaybrugroup.com


Blog author image

Jay Bru

Jay grew up on a grain and cattle farm in Saskatchewan and started working at a very young age. He got into real estate at a young age buying his first property at 23. He's owned several businesses in....

Latest Blog Posts

Will The Housing Market Turn Around This Year

Will the Housing Market Turn Around This Year?Today, many people are asking themselves if they should buy or sell a home in 2020. Some have shifted their plans or put them on hold over the past

Read More

Unemployment Report No Need To Be Terrified

Last Friday, the Bureau of Labor Statistics (BLS) released its latest jobs report. It revealed that the economic shutdown made necessary by COVID-19 caused the unemployment rate to

Read More

Apr 13 2020 70621 1 What Is The Best Time To Buy A House

What Is the Best Month to Buy a House?Let's make this clear: There's no such thing as a guaranteed "best month" to purchase a home. (C'mon, we never said this would be easy!)While some conventional

Read More

Apr 10 2020 70621 1

<div > <ul > <li style="letter-spacing:normal!important;font-family:Arial,sans-serif!important;display:block;vertical-align:baseline!important;padding:30px 0!important; border-bottom

Read More