Real Estate

Amid Phoenix’s population growth, rents reportedly jump by 20%

Posted 11/24/21

The cost of renting in Phoenix has increased up to 23% as Phoenix continues to grow in population and corporate establishments, making it difficult for working-class residents who may face eviction …

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Real Estate

Amid Phoenix’s population growth, rents reportedly jump by 20%

According to one report, the average cost of a two-bedroom apartment in the Phoenix area is $1,550. Meanwhile, one Valley resident says she is paying nearly $2,000 in monthly rent.
According to one report, the average cost of a two-bedroom apartment in the Phoenix area is $1,550. Meanwhile, one Valley resident says she is paying nearly $2,000 in monthly rent.
(Independent Newsmedia/Arianna Grainey)
Posted

The cost of renting in Phoenix has increased up to 23% as Phoenix continues to grow in population and corporate establishments, making it difficult for working-class residents who may face eviction or outbidding for homes, some say.

According to a report from Zumper, the median rent for a two bedroom is $1,550, which is about a $300 increase from last year. The rent ranges from $500 to $4,800 in Phoenix alone, depending on the apartment, amount of bedrooms, or house size.

Marina Michelle Holguin, medical assistant and tattoo artist at Razteca Tattoo, is one of the Phoenix residents who experienced the rental increase and struggle of finding a new home.

Holguin used to live in the Avenue 19 apartments with her boyfriend and her newborn when they received a 30 day notice “to be out of the apartment” and “with no chance to renew” the lease.

“I guess it was because they were going to remodel everything, raise the rent and offer it to tenants at a higher rate,” Holguin said. “So we were on the hunt for an apartment or a house, but the prices have gone extremely crazy. We pay about $1,900 to rent a home now when for the same house I could’ve rented for maybe $750-$800,” Holguin said.

According to the city of Phoenix, Phoenix is the fifth largest city in the country, and it is experiencing a population growth which is outpacing the housing market. There was a housing gap analysis that reported Phoenix needing 163,067 additional housing units.

Shawnee Doherty has 15 years of experience as a Realtor in the Valley, working as a real estate specialist who refers buyers or renters to homes within their financial budget.

“Some people aren’t in a position to buy financially even if they can afford that rent,” Doherty said. But if people “have the down payment,” “have the credit” and “have the income” then it’s something that she’ll recommend to potential buyers.

“Mortgage is probably the cheapest rent right now because of interest rates,” Doherty added.

Our economy used to be “based so much on snowbirds and people retiring,” Doherty added. But now the prices of home value have gone up because “we’re becoming a big hub for technology,” bringing in more “younger, working” people as opposed to a more retirement-based community.

According to Doherty’s Multiple Listing Service statistics, the number of sold listings in October 2021 decreased 12% compared to October 2020 from 10,026 to 8,790. However, the median list price of October 2021 was $469,000, a 19% increase from 2020’s $393,990, and economists are predicting it will continue to rise into next year, some say.

Doherty said that the amount of people moving to Phoenix and buying picked up last fall but leveled recently. There’s a possibility that many buyers stopped looking or decided to wait until the market cools off, causing a 26% decrease in the amount of time a home takes to sell.

“Homes are selling quicker and prices are continuing to rise,” according to Doherty. “I’m not sure sitting on the sidelines for too long will be a good decision if you are really wanting to own a home in the near future.”

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