As the national average rent increased by 2.5% during 2017, Phoenix rents followed an ascending trend as well. At the end of 2017, the average rent in the city of Phoenix was $934, 4.5% more than it was at the end of the previous year. According to Yardi Matrix, rents in Phoenix have been growing at a steady pace but are still considered to be affordable compared to the rest of the country. Moreover, the increase was significantly lower than in 2016, when it got to 7.1%.
Queen Creek witnessed the highest increase in the average rent
Meanwhile, the average rent in Phoenix metro was $1,020 in 2017, growing by 3.2% over the year. Despite the year-over-year increase, the average rent is well below the national average of $1,359. However, there are a few cities in the suburban metro area where the average rents saw outstanding increases. Out of the entire Phoenix metro area, Queen Creek stands out with a 7.9% increase in the average rent. If in 2016 renters were paying an average rent of $1,086, in December 2017 this amount got to $1,172.
Surprise and Avondale had the second fastest growing rents, both witnessing a 7.4% increase. The latter saw a slightly higher increase compared to 2016 when it got to 6.5%. Apartment renters in Avondale pay on average $1,022 per month. Other cities like Gilbert (6.9%) and Goodyear (6.8%) also experienced significant increases.
Compared to 2016, in 2017 fewer cities witnessed an increase over 5% with the highest being 7.9% in Queen Creek and the lowest, 3.7% in Scottsdale. The most notable change year-over-year was in Surprise where surprisingly, the increase was of 7.4% in 2017, much lower than 2016’s shocking 12.6% increase.
2017 brought some relief for metro Phoenix apartment renters, meaning that if in 2016 rents witnessed double-digit growth, in 2017 the highest increase was of only 7.9% in Queen Creek. However, some things stayed the same with Scottsdale being the most expensive city to rent in both in 2016 and 2017. Here, the average rent reached $1,320, 3.7% more than what it was in 2016. The increases were modest in cities like Scottsdale (3.7%), Mesa (3.8%) or Tempe (4.3%).
All things considered, in 2017 no markets in metro Phoenix saw decreases in the monthly rent and, in fact, the average price for an apartment in the area has been growing faster than the national average.
Scottsdale leads with the highest rent in Metro Phoenix
The most expensive city to rent in around Phoenix is Scottsdale, with an average monthly rent of $1,320, followed by Tempe ($1,240) and Queen Creek ($1,172). At the opposite end, the most affordable cities are Glendale, where renters pay an average rent of $862, Mesa ($892) and Phoenix ($934).
Rent prices accelerated in Central Phoenix
The most affordable zip codes in the city of Phoenix are also the ones where rents increased the most. To be more specific, Central Phoenix is home to the top three zip codes with the highest increase in the average rent. Maryvale’s 85031 witnessed the highest increase of 14.5%, with rent prices jumping to $750. Other zips experiencing considerable y-o-y increases were 85019 (10.2%) and 85013 (9.7%), both located in the Alhambra/Central Phoenix neighborhood.
However, in more affluent zips, the average rents have either decreased, stagnated or barely increased. Zip 85020 in North Phoenix witnessed the biggest drop of -2.6%, followed by neighboring 85028 with a decrease of -2.1%. The average rent in this part of the city can go up to a staggering amount of $1,400.
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RENTCafe is a nationwide apartment search website that enables renters to easily find apartments and houses for rent throughout the United States.
The report is exclusively based on apartment data related to buildings containing 50 or more units. Rent data was provided by Yardi Matrix, a business development and asset management tool for brokers, sponsors, banks and equity sources underwriting investments in the multifamily, office, industrial and self-storage sectors. Rental rate coverage is for Market Rate properties only. Fully Affordable properties are not included in the Yardi Matrix rental surveys and are not reported in rental rate averages.
Starting with the January 2017 rent survey, Yardi Matrix is using a methodology that incorporates more properties into the sample which caused slight changes in overall rents and year-over-year changes compared to the previous reports. We expect this methodology adjustment to produce more accurate averages at the national and metro levels.
*National averages include 127 markets across the US, as reported by Yardi Matrix.
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