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.
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.
- October 2014 = 1,435,000
- November 2014 = 1,618,000
- December 2014 = 2,001,000
Here’s what that same chart looks like today:
- 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!