Every once in a while, it’s a good idea to look at rental rates across the Valley. After all, we recently talked about the opportunity to rent your home and become a landlord rather than sell it. Let’s take a look and see how rentals are shaking out across the area.
A quick review reveals that rental rates are on the rise but the available properties for rent are going down. On July 24, 2016 there were 2,998 active rental listings in the Arizona Multiple Listing Service (ARMLS). The same date in 2015 had 3,291 rental listings, and in 2014, there were 4,474. Quite a dramatic drop from 2014 to 2015. Then consider the number in 2008 after the bubble burst: 8,525 listings.
According to trusted source the Cromford Report, the current average lease across the ARMLS is 85 cents per square foot. At this time in 2015, the average was 81 cents – that’s an increase of 5%. This is very similar to 2015 as compared to 2014. In 2014, the average lease rate per square foot was 75 cents and in 2013, 69 cents. Since 2013 the rental rates have risen 22%.
This makes a good situation for landlords and those considering becoming a landlord, as an investment to produce additional income. On the other hand, it limits some people in their housing choices, since cost of living and wages haven’t raised at the same rate as rent. People are spending more on rent, they have less to save and put towards purchasing a home.
The current average listing price for a rental is $2,046 as compared to $1,822 in 2015. Depending on down payment fees this could actually be equal to or more than a mortgage in many areas.
We’ll continue to keep an eye on rentals and rates, since golf homes are popular rentals, especially in the awesome winter and spring months. If you’re considering purchasing a Scottsdale golf home as an investment to rent, now may be a great time to buy. Contact the Matheson Team today to weight your options and browse golf course homes for sale in Scottsdale, AZ.
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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