As we’ve been talking about the low supply of single family homes around the $250k mark, and the slow but steady increase in home values, here’s a not-so-surprising side effect: Phoenix rentals and rental rates are on the rise.
Part of the sluggish supply of affordable single family homes is that construction was stagnant for so long during and after the housing bubble in 2008. While construction has certainly started coming back, we may not see the jolt in supply for little longer. Plus, the Phoenix population is growing and countering much of the new available housing. And we know that population is a big driver for demand.
In fact, that population growth is expected to keep Phoenix rentals and rental prices moving upward. According to Mark Stapp, Director at the Center for Real Estate Theory and Practice at Arizona State University, about 85,000 new residents are coming into Arizona every year. When you compare that number with the number of supply, they are unbalanced and causing competition amongst buyers and renters.
At the end of the 2016 summer, Phoenix came in with the 4th highest rise in rental rates across the country. And it’s been on a steady rise for almost every month over the last two years. But that doesn’t seem to be keeping renters away, or keeping down construction on apartments. Over 10,000 new apartment homes are already underway, many in Tempe along the lakefront or planned for when rundown buildings in Phoenix and Scottsdale are replaced with modern multi-family units.
Even though Phoenix is among the top ten in rental rate increases, the country in general is experiencing higher rates and more people renting, especially with a big jump in Q2 of 2016. Occupancy in apartment homes in the 100 largest metro areas increased by 127,402 units in this quarter alone. With ongoing building and construction permits, the renters and rates are expected to keep moving on up. That is until the supply surpasses the demand, for both Phoenix rentals and single family homes under $250k.
So what does this rise in Phoenix rentals mean for you and your AZ golf home? Well, if you’ve been thinking about renting out your home, now may be a good time to dive in and tap the growing market. Or, if you have one of those rare single family homes valued around the $250k mark, now could be the time to cash in and either move up or down size.
To find out the value of your home and your best move, contact AZ golf homes experts the Matheson Team. Then browse the golf homes for sale in Scottsdale AZ to get an idea of what is out there and available. We know Arizona golf communities and will help you through the entire process.
Don Matheson
Realtor | Founder
The Matheson Team – RE/MAX Fine Properties
21000 N. Pima Rd., #100, Scottsdale, AZ 85255
480-405-4228
don@azgolfhomes.com
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Phoenix rentals and rates are on the rise
