Market Conditions in Phoenix>Question Details

Marty,  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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recession lead to lower rents, and that is happening in Phoenix. Vacancies are over 10% on average, which is nearly the worst in Phoenix history, so expect a very soft rental market over the next several years.
0 votes Thank Flag Link Thu Jan 15, 2009
Here's another perspective. A few years ago there were too many rental homes and not enough renters due to no money down loans and easy qualification terms. Now we are seeing a shift. It is harder to get a loan. More down payment is required and better credit is needed. Additionally, if a person moves to Arizona (anywhere for that matter) they will need 24 months employment in the same line of work for many loans. Additionally, many people have destroyed their credit and cannot purchase a home for a few years (3 years or more). Lastly, many retired people and younger people looking for work are moving to Arizona.

This all means that there will be more renters and more demand on rental properties. Higher rents due to lower vacancy from the new demand. This is a good opportunity for land lords.
0 votes Thank Flag Link Sat Apr 26, 2008
Marty

The second part of your question is area. The more centrally located, stronger school district rentals are definitely out performing perimeter environments. People tend to rent convenience especially when our market rents are substanially low versus our prices. In other words there are many 400+k homes out there that rent for less than $1800 a month. Renters can live in a much nicer home for the monthly payments than a buyer by a long shot. Top job centers (Central Phoenix, Biltmore Corridor, Tempe and Scottsdale Airpark) also have much lower vacancy rates.
0 votes Thank Flag Link Tue Oct 16, 2007
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