September 24, 2022
Rent Increases in Phoenix
by Rosemary DeLaurentis
Day 6 of 7 – my home buyers series. There is one really good reason to buy a home or condo in Phoenix – the reason being the INCREDIBLE RENT INCREASES over the past few years.
My most recent first time home buyer told me yesterday that when she moved to Phoenix in 2020 she was able to rent her one bedroom apartment in North Phoenix for $800. In 2021 they raised her rent to $1250 for that same one bedroom apartment. She said they were getting ready to raise it again when she decided it was now time for her to purchase and get out of renting forever.
This is from an article by Catherine Reagor, Sr. Real Estate Reporter for the AZ Republic:
“RENT in the Metro Phoenix Area is SKYROCKETING, climbing 80% between 2016 and 2021. Meanwhile, median household income only rose 22% during those 5 years. Reagor stated that Phoenix “led the nation” in rent increases. There has been more than a 30% increase in the price of apartment rentals last year, and a more than 20% increase in single family rentals last year. All of this is happening even though Phoenix is leading the nation in development.”
When Vince and I moved to Phoenix in 1988 we had been renters up until that time having moved here from Austin TX. Even though Vince was starting his own window cleaning business here, we set a goal of home ownership. We had residual income from the sale of our business in Austin and we had no debt. Our next goal was to buy a home so we could gain appreciation and have something to show for maintaining our own place. It was a struggle but we purchased our very first home on our own with no help from family. It was a small home – only about 1300 sq. ft – 3 bedrooms, 2 bathrooms. It needed updating but we did it over time as we could afford it. We lived in that little home for 15 years. We raised our daughter there and during that time all 3 of us got college educations.
When it was time to move and upgrade we sold and had $100,000 in profit. That was proof to me that real estate is a good sound investment. Our next home was almost twice the size, then our 3rd home was ‘fancier’.
It may feel like a ‘stretch’ to purchase or to UPDGRADE but I encourage you to ‘take the plunge’. In 5 years, you will be so happy you did! Let me help guide you with the assistance of my awesome lenders.