Phoenix’ 2013 rental real estate forecast

2012 was a good year to be a Phoenix apartment renter. There were bargain deals to be had, selection of units was plentiful around the Valley, and property managers were motivated to make you happy.

In 2013, expect things to shift a bit. With the real estate market continuing to improve, it will be a better year to be a Phoenix landlord than somebody writing a rent check in the year ahead. Vacancies are down and rents are up, two landlord-friendly trends that are expected to continue into 2013.

What’s changed? Well, one factor is that the number of people moving here is large and continues to expand. Seeking a low cost of living, warm weather and new opportunities, Phoenix’ population is growing, and job gains are also ahead of the national average. These brand new Phoenicians need somewhere to live, and apartments are typically their first choice, creating a steady demand for rentals.

Meanwhile, housing prices in Phoenix are coming back up, at speeds much faster than anyone anticipated. Average sale prices made gains of up to 30 percent in 2012, and that figure is expected to go up to 50 percent next two to three years.

In other words, if you live in an apartment now but have been thinking of buying your own place, NOW is the time to make that happen, before prices go even higher and while mortgages are ultra-affordable. If you’re sticking around in your rented unit, be prepared for a price increase when your lease is up – and less availability if you go hunting for a new place.

What are your real estate plans for the coming year?