Why Phoenix Area Rents Are Rising!
We are experiencing a welcome upswing in the rental market in Phoenix. Why? I offer a brief summary of factors that contribute to this "white hot" market and why demand is up while supply is down. When I am discussing Phoenix area, I am including the 27 incorporated cities that make up "The Valley of the Sun". Population: 4.3 million and growing!
- Low inventory of available rentals due to last years fast paced scramble to locate a house to rent.
- Continued influx of new "tenants" due to Phoenix job growth of an estimated 65,000 new jobs in 2015 and projections of another 65,000 new jobs in 2016. (Mike Orr, ASU School of Business)
- "Foreclosed" and "Short sale" homeowners are now sitting in the "penalty box". They have become renters and will remain so until required time has lapsed for lender approval to buy again.
- Tighter Credit Standards have pushed back potential first time home buyers.
- Potential "Sellers" have opted to stay put causing less inventory for potential buyers to choose from.
- Potential "Buyers" are staying put in rental homes due to a low inventory of homes for sale.
- The population of Phoenix and surrounding cities continues to grow by almost 100,000 per year!
- Shelter is always first. That is why our smart investors continue to benefit from owning rentals and adding inventory to their investment portfolios.
- Call us today for adding inventory, 1031 Exchange and any other real estate service you may need.
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