With the spotlight in Arizona, Zumper just released in November rent report It appears that pandemic-era trends are beginning to recede as rental demand declines in Arizona. Zumper has been tracking rental prices and trends across the country since 2014.
Some of this month’s results that are particularly relevant to Arizona fans include:
• The average 1 bedroom rent across Arizona was $993 in April 2020; Two years later, it rose 33.5% to $1,326.
• The average one-bedroom in Phoenix was up just 0.7% ($1,390) month-over-month, while the two-bedroom average was down 0.6% ($1,690).
• Chandler, Gilbert, and Tucson all saw their one-bedroom averages decline this month, and we expect this trend to spread to cities like Scottsdale and Mesa over the next six months.
• With the housing market slowing and uncertainty hanging in the air, buyers are withdrawing from the market – giving potential buyers less competition from all out-of-the-money offers. But with interest rates still rising, many people are holding off on buying a home right now, which means rental demand won’t completely wane.
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1. Fears of an economic recession and decreasing occupancy are helping to drive down rental prices in most parts of the country.
2. Pandemic-era trends are beginning to recede, particularly in areas that previously welcomed large numbers of new residents thanks to work-from-home policies. This reversal is particularly evident throughout the state of Arizona.
3. Boston and San Francisco are now tied for the second most expensive city in the country, and New York shows no signs of letting go of the top spot.
Arizona is a perfect example of immigration trends in the era of a pandemic and how those trends are now beginning to unfold. Nearly every city across the state has seen stratospheric prices rise throughout the pandemic, thanks to an influx of new residents looking for warm weather and a better quality of life. The average one bedroom rent across Arizona was $993 in April 2020; Two years later, it rose 33.5% to $1,326.
Another factor driving Arizona rental demand and rental prices: the disproportionately large number of iBuyers flipping Arizona homes over the past few years. Now, with the housing market calming and uncertainty in the air, many iBuyers have cut staff (or shut down altogether) — giving potential buyers less competition from all-for-the-money offers. With interest rates still rising, many people are holding off on buying a home right now, which means rental demand won’t completely wane.
But a spiral of uncertainty, inflation, high interest rates and back-to-work policies have dampened demand across the state. For example, the average one-bedroom rent in Phoenix is up nearly 19% compared to the same time last year, but those price increases are slowing. The one-bedroom average in Phoenix was up just 0.7% month over month, while the two-bedroom average was down 0.6%. Chandler, Gilbert, and Tucson all saw their one-bedroom averages decline this month, and we expect this trend to spread to cities like Scottsdale and Mesa over the next six months.