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Rents in Phoenix haven’t increased in months… but they went up a ton last year.
“The ARMLS database suggests rents are already on a declining trend. The average lease list price per sq. ft. was $1.69 yesterday. It was $1.98 this time last year.”
– Mike Orr at Cromford Report, April 4
Investors are driving the market. What do they do if they see rents fall?
Nevertheless, the median new lease price went up $565/mo from Q1 2020 to Q1 2022. That’s sucking a LOT of money away from the rest of the metro Phoenix economy.
We’re at 2030 Prices?
From 1990 to 2020, metro Phoenix house prices increased an average of ~4% a year.
From 2020 through 2021, prices increased ~50%. That’s equivalent to about 10 years of appreciation at 4% appreciation/year. So, in a way, we’re at 2030 prices today.
“As rates quickly approach 5%, we expect their impact on homebuyer demand to change from a motivator—driving a sense of urgency to buy before rates rise further—to a deterrent—causing buyers to step back as the cost of homebuying exceeds their budgets.”
Nice way to explain it!
I guess Casa Grande is already hot but Arizona has a lot of smaller towns that would be great places to live.
Click on the graph to go to the full-size, interactive version.
This information can vary a lot in different parts of metro Phoenix. Your real estate agent can find the data for your specific city or zip code at The Cromford Report.
- Phoenix Weekly Market Updates 2022
- Phoenix Weekly Market Graph (only)
- Long-term Phoenix real estate market graphs