Foreclosure in Phoenix>Question Details

Marty, Real Estate Pro in Edmonton, AB

What's the residential rental vacancy rates in Phoenix? Which areas are lower than others?

Asked by Marty, Edmonton, AB Tue Oct 16, 2007

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Marty

The residential real estate market is quickly trending under 5% for vacancy and rents continue to increase. More people are putting off buying and more people are also being forced out of their homes and into rentals after foreclosure. All this combined with the exuberant condo conversion phenomenon which lost our market over 10,000 rentable units in a short couple of years is really skewing supply and demand. Our population growth is really continuing to happen, yet our current market is absorbing the majority of these people as tenants rather than buyers. I would expect a 5+% increase in most rents around the Valley this year. As a matter of fact I have upped rents at every recent renewal this year for my investor clients, including myself. Expect incentives and lucrative offers to new tenants to really diminish as the demand is high and many of these people are coming out of or are currently in a credit crunch and/or low FICO score profile.
1 vote Thank Flag Link Tue Oct 16, 2007
The most current Rent Check Report by ARMLS notes that the monthly rental statistics for the Phoenix Metrol Area are strong. In comparison to July, 2012 the number of closed rental units is up 18%. There were 22,039 from Jan-July, 2012 and 25,922 Jan-July, 2013. The rental market is averaging 3703 closed units per month to date. That 17% above the average last year. Median Lease rates are up currently $1100/month. Average Lease is $1276/month. Average Days on the Market is 38 days. What I'm seeing in the West Valley current rental market is very little opportunity to negotiate a lease amount unless the rental is in pretty bad shape and has been on the market over the norm in less desirable locations. The clean rentals go fast and rental rates have increased significantly in high demand areas in the West Valley. A lot of people are renting in the communities they wish to buy a home in at a later date. They may have come out of a BK, foreclosure and/or short sale and still in the waiting period to qualify for a loan to purchase again. It's getting tougher to find really clean rentals with front and back yard landscaping (not dirt and rocks), upgrades and refrigerator, washer and dryer included. Most that are clean get top dollar and multiple applications in the right locations.
0 votes Thank Flag Link Sun Aug 4, 2013
Real estate agent Lloyd Fox: Where did you get your information from? The Arizona Republic recently profiled a 21% vacancy rate in the Phoenix rental market, with prices dropping 3% from last year. Another story recently stated that population growth has stagnated, with expected declines of 1-2% in 2010.
0 votes Thank Flag Link Tue May 26, 2009
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