The Phoenix housing market: how it affects you, a renter

The days of leisure apartment or rental shopping are coming to a close here in the valley.  More people are becoming renters than home buyers here in the Phoenix metro area and that means we’ve got some competition. It’s now more important than ever to find a place you like, lock in a lease and stick with it.  Rent is about to go up! Why do you say? Here’s the scoop.

The economy of real estate has taken a severe blow in the past seven or so years.  More homes than ever have been foreclosed upon, the jobs markets are suffering so Americans have needed to cut their living costs and overall home values have plummeted everywhere.  Phoenix was one of the three hardest hit cities in the entire nation meaning we have been left struggling harder to stay out of financial trouble than almost everywhere else.

So why will rent be going up in the Valley?  Well there are a few reasons.  Firstly, with so many families, which have gone through and have yet to go through foreclosure or a short sale of their home are quite literally forced to rent for a very minimum of two years before they are able to finance another home.  From here, the extremely low price of homes around Phoenix and the amount of vacant properties is drawing real estate investors like kids to an ice cream truck on a summer day.  All of these investors are turning these foreclosed homes into rental properties and they are charging whatever they want.

The second factor is the lack of consumer confidence in the real estate market. Simply put, Arizonians don’t even want to purchase a home right now even if they are qualified to do so. All of these things together mean there are more renters looking for housing than usual here in Phoenix.  Competition means that landlords and property management companies can be pickier about their prospective Phoenix  renters by requiring higher credit scores and larger deposits.  If you are able to find move-in incentives be sure to snap those up because those are nearly extinct!

The reality is, is that rental prices rose 9% in 2011 on average nationwide.  Prices are expected to rise further until the economy finally evens out.  The point of the matter, get a jump on your Phoenix rental.  Find a location you can see yourself living in for two to five years and lock in a long-term lease.  This will more than likely save you from rent hikes or having to settle on a place because all the best spots have already been nabbed up.