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!


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