Real estate & real living in the Valley of the Sun
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Metro Phoenix Rental Market Shows No Signs of Weakening

The rental market in our area continues to amaze me… Good rentals under $2,000/mo can be hard to find. This spring, even seasonal rentals were hard to find.

Cromford Chart- PHX Metro Avg Lease $/SF

Apparently all the people who aren’t eligible or aren’t ready to commit to a mortgage or a long stay are not restraining landlords at all. I’ve been on both sides of the coin this year- representing landlords in Arcadia & McCormick Ranch who get full price & fast occupancy on “pie in the sky” prices and tenants in the heart of Scottsdale, Midtown Phoenix & the Biltmore who couldn’t even find listings, let alone get to them fast enough. A client coming into town earlier this summer in advance of a relocation initially planned on staying for just a day. After advising him that it was likely enough time, he extended his trip to 3 days, but still was not able to lock up a rental before he left and had at least one rejection from a landlord, despite his signed 3-year contract for employment.

Back in early February, I shared a chart showing US Household Formation, which after a steep decline appeared to be on a steep upswing.

20150131-CromfordRpt_US Household Formation 12 mth 4Q2014

  • October 2014 = 1,435,000
  • November 2014 = 1,618,000
  • December 2014 = 2,001,000

Here’s what that same chart looks like today:

US Household Formation- 8/2015

  • April = 2,331,000
  • May = 1,901,000
  • June = 2,246,000

The trend definitely is still going and these are some substantial increases. Certainly, landlords are still in a unique position here in Maricopa County, if they actually want to be landlords. There’s a lot that will play out over the next 6-12 months- new rental units under construction, more borrowers eligible to buy, a looming market correction in China???

Everyone should stay tuned for more info… but in the meantime, if you find yourself with a need to list a home to lease or lease a home to live in, please call/text/email me for info that will help you to make a wise decision!


Related articles:

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15,631 Active Listings in Maricopa County (and Still Falling?)

Gains Starting to “Trickle Up: in Phoenix & Scottsdale Real Estate

Camille Swanson, REALTOR®
Call (602) 810-1750 Direct
(480) 998-0676 Office

6263 N. Scottsdale Rd. #140
Scottsdale, AZ 85250

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"Despite an upward trend in permits, we are unlikely to see affordable supply growing in the short or medium term, unless we start to redefine our thoughts about what is affordable: $300,000, or maybe even $350,000." - The Cromford Report 3/12/18

I've NEVER been a hard sell agent. I give you good info. You use it to make good decisions. If you're buying a home under $300K this spring in Metro Phoenix, carefully ingest this info. Then CALL ME to create a plan. YES- you need a plan. **This is one of the most competitive markets I've seen in years.**

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