Tom at The Information Market – Last Week
Mike at The Cromford Report – Feb 18
While demand from investors, particular large scale buy to rent investors, remains strong, demand from owner occupiers is in a clear falling trend.
Single-family homes are being removed from circulation for many reasons, such as:
1. more of them are being converted to use as long-term rentals
2. more of them are being converted to holiday rentals (Airbnb, etc.)
3. fewer sellers want to give up their cheap mortgage rates, which they would have to if they moved
4. large numbers of baby boomers are aging in place and not excited about moving home at this stage in their lives
My take on why supply is so low
The top reason is landlords buying so many houses away from families. If landlord purchases were back at “normal” levels, the supply of homes would be most of the way back to “normal” too.
Other factors are:
- Second Homes: The increase in vacation home purchases
- Airbnb: The increase in the number of family homes being converted into businesses, that is, short-term rentals like Airbnb.
Phoenix Real Estate Market at a Glance
Click on the graphs 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.