Phoenix single-family rentals have continued to outpace the national average, according to CoreLogic. This high-demand is fueling prices and is reflecting nationally. Rents increased an average of 4.7% year over year for the first six months of 2018. Now, what is the reason for this market shift? Well, if you continue reading, you’ll find out why.
Single-family home rents in Arizona continued to outpace the national average during the first half of the year, according to a report from CoreLogic.
High rental home demand is fueling higher prices nationally, and that’s particularly true in Arizona. Nationally, rents rose a cumulative 4.1 percent from January to June, according to CoreLogic.
In Phoenix, rents increased an average of 4.7 percent year over year for the first six months of 2018. The report points to a higher employment growth rate — 3 percent in Phoenix compared with 1.6 percent nationally — as fueling more demand for rental housing.
“High demand and low supply of lower-priced single-family rental properties continue to push up rents for this segment of the rental market,” said Molly Boesel, principal economist at CoreLogic.
Demand for rental housing isn’t expected to taper off during the next six months, according to the report. With home prices rising nationally 6.8 percent, affordable housing to buy is becoming harder to find.
Arizona’s median home prices were $242,100 in July, according to Zillow. That’s up 8 percent over 2017.
Separately, rising home prices in the Phoenix area are driving more would-be homeowners to apartment rentals — a trend that could lead to a shortage of apartments even though there are nearly 17,000 units under construction.