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
image-4370

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
image-4371

  • 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
image-4372

  • 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:

Is Your Homeowners Insurance Keeping up with Your Renovations?

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
camille@camilleswanson.com

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

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