Landlord Tips & Tricks

July 30, 2024

What's The Average Rent In Phoenix, AZ

Zoe Harper

Marketing

As of July 2024, the average rent in Phoenix is $1,367, showing a drop of 3.5% from last year¹. This dip gives some financial breathing room to people looking for homes in a tight market.

The cost for a one-bedroom place sits at about $1,172. For two bedrooms, it's roughly $1,397¹. These prices give us a peek into the cost of living in Phoenix, showing how prices can change with the apartment's size.

Key Takeaways

The median rent in Phoenix is $1,367 as of July 2024¹.
One-bedroom apartments have an average rent of $1,172¹.
Two-bedroom apartments average $1,397¹.
Year-over-year, Phoenix has seen a 3.5% decrease in average rent¹.
The rental market in Phoenix continues to reflect broader trends with shifting price points.

Introduction to Phoenix's Rental Market

The Phoenix housing market is known for being lively. It offers both chances and hurdles for renters and investors. Right now, the average rent for different types of homes in Phoenix is around $1,750². Also, the yearly growth rate of rent has slowed to 6.0% across Phoenix². This shows a steady increase in rental prices due to ongoing demand.

Rental trends in Phoenix are changing. Less competition for rentals is now seen. At the most recent peak season, there were 10 people trying to rent each available place. This is down from 13 the year before³. The city's occupancy rate is 93.3%, just below the national average. Only 55.3% of renters decided to renew their leases this year³. These numbers paint a picture of the changing Phoenix rental scene.

Finding a place to rent in Phoenix is easier now, thanks to new tools and platforms. They provide detailed listings and make checking on potential renters straightforward. Plus, Phoenix is seeing lots of new homes being built. By end of the year, there will be 14,600 new rental units available³. This boom in construction ranks the city as the 6th most active builder in the U.S. It could mean more choices and stable rent prices for tenants.

But, construction of new homes in Phoenix is slowing down, which has been happening for four quarters now². Apartments that are empty stay that way for 37 days on average. This is just a bit longer than last year's figure³. For those looking to rent, moving quickly and wisely is key in this tight market.0>

To wrap up, the Phoenix rental market is still thriving but is also unpredictable. Changes in the market are constant. For anyone looking to rent or invest here, staying updated on these trends is essential. These insights help in making smart choices in the Phoenix rental world.

Current Median Rent Prices in Phoenix

The current median rent in Phoenix is $1,367. This is the same as last month but shows a 3.5% decrease from last year¹. If you're thinking about moving to Phoenix, knowing the rental rates is key. A one-bedroom costs about $1,172. A two-bedroom is around $1,397. So, the average rent for all types of places is $1,367¹.

Rental rates in Phoenix are expected to grow by 1.0% in 2024. This is more than the growth rate of the past year¹. As of June 2024, Phoenix's rent growth ranks it 80th among big U.S. cities. The national growth rate is only 0.4%¹.

Phoenix's median rent is 3.1% lower than the U.S. average. It's comparable to cities like Fort Worth, TX, with rent at $1,386, and Dallas, TX, at $1,365¹. In the broader metro area, the median rent is higher at $1,451. This means Phoenix's rent is 5.8% cheaper than the metro average¹. Knowing these rents helps prospective renters plan their budgets. For more details, check this detailed report on Phoenix rental rates.

Historical Trends in Phoenix Rent Prices

Looking at Phoenix's rent prices over time offers deep insights. In 2019, Phoenix's median monthly rent was $1,188, and the average was slightly higher at $1,202⁴. The rental vacancy rate dropped to 4.98%, down from 13.58% in 2009⁴. It took 21.00% of a median household's income to afford the median rent in 2019⁴.

In 2019, 35.45% of Phoenix homes were rented. This was a decrease from 40.43% in 2014⁴. These changes show how the economy impacts where people choose to live. The part of income spent on rent reached its highest at 21.87% in 2012. But by 2019, it was slightly lower at 21.00%⁴.

More recently, rent prices in Phoenix saw a big jump. From August 2022 to August 2023, rent prices increased by 10%⁵. Average rent went from about $1,246 to $1,310 in the same time⁵. This shows that rent is becoming a bigger challenge for many.

Demographic factors, like the number of students from Arizona State University, also affect rent prices. For instance, rent for one-bedroom places has skyrocketed to $2,000 in some areas⁵. This points out how certain trends can push up rent.

These trends in rent prices show why it's so important to keep analyzing the housing market in Phoenix. As the rental landscape changes, staying informed helps in creating better housing policies.

Comparing Phoenix Rent Prices to National Averages

Looking at Phoenix vs. national rent comparison, Phoenix shows a good mix of low prices and convenience. The median rent for a one-bedroom in Phoenix stands at about $1,155. A two-bedroom is more, costing roughly $1,397⁶. On the other hand, rents across the U.S. have gone up, making Phoenix a good deal despite the economy and inflation.

1-Bedroom vs 2-Bedroom Apartments

In comparing sizes, one-bedroom and two-bedroom apartments in Phoenix show clear price differences. A one-bedroom costs an average of $1,155⁶. This is below the national average. For a two-bedroom, the price is about $1,397⁶. This shows Phoenix's appeal with its lower living costs compared to the national trend.

Apartment Size and Rent Variations

The Phoenix housing market analysis highlights diverse rental prices based on size. Studios go for $1,300, while two-bedrooms can hit $1,800 a month⁷. These numbers show Phoenix's rates are close to national ones. Phoenix's moderate rent hikes also add to its charm, making it appealing despite rising rents across the country according to this source ⁷.

Phoenix's rent dropped by 4.7% last year, unlike other big cities⁶. This fact, along with the Phoenix housing market analysis, shows why Phoenix is a good place to live in 2023.

Regional Variations: Phoenix vs. Greater Metro Area

Rental rates and availability vary a lot between Phoenix and its greater metro area. In the greater metro area, median rent prices are usually higher than in Phoenix. This is because of different economic situations and what renters prefer in city vs. suburban areas. Economic stability and the attractiveness of certain neighborhoods are big reasons for these differences.

In terms of new apartments, Tempe and Phoenix are leading. Tempe has added 5,667 new apartments, and Phoenix has increased by 3,587 units⁸. Even so, vacancy rates in the broader Phoenix area are stable, around 7%⁸. This stability helps explain why rent prices can vary a lot from city to suburbs.

Phoenix metro rental rates also feel the impact of trends in the greater metro area. This year, the Valley got 10,500 new rental units, an 8% jump from last year⁸. A key difference is the average rent for a one-bedroom apartment. It's lower in Phoenix at $1,320 than in the metro area at $1,422⁹.

The average rent for a build-to-rent (BTR) home in the Phoenix area is below $2,000 a month¹⁰. However, places like Scottsdale have much higher rental rates. In Scottsdale, renting a two-bedroom apartment can cost around $1,784⁹.

Finally, knowing about these regional differences is very important. It helps both renters and investors understand the Phoenix metro rental market better. It highlights how trends in the metro area can affect Phoenix's rental market.

Cost of Living in Phoenix

Thinking about moving to Phoenix? You'll want to look at what it costs to live there. The city's cost of life involves many key expenses. Knowing these will help you see how it stacks up to other places.

Comparison with the National Cost of Living

In Phoenix, how much you pay for living can be different from the U.S. average. For a 1-bedroom, the median rent in Phoenix is $1,367. That's a bit more than the U.S. average of $1,239. But, it's close to the $1,396 you'd pay for a 2-bedroom place¹. Also, when it comes to rent increases, Phoenix is #80 among big U.S. cities¹. Being the #60 most expensive big city shows its housing costs are pretty high¹.

Breakdown of Major Expense Categories

Let's break down costs in Phoenix. Housing here is about 23% more expensive than the U.S. average¹. But, things like goods and services cost about 10% less. This offers some balance to the high price of homes¹.

The median rent is also 5.8% cheaper than the whole metro area, at $1,451¹. These differences highlight both the higher and lower costs you'll find when compared to the larger area and the nation¹.

So, if you're thinking of Phoenix as your next home, consider everything. High housing costs contrast with more affordable goods and services. This creates a unique financial scene in the region. It's crucial for newcomers to weigh these factors before deciding.

Year-over-Year Rent Change in Phoenix

Last year, rents in Phoenix jumped almost 30%, more than twice the U.S. average increase¹¹. Next year, they're expected to go up by nearly 20%, which is still a lot, but not as much¹¹.

Big money has been spent on Phoenix rental complexes, with $13.8 billion invested last year. This caused apartment sales in the area to shoot up by 151%¹¹. Meanwhile, the whole country's rents only went up a little, by 0.77%, which is about a $15 increase per month¹².

Phoenix's housing scene is really changing. Now, only 3% of apartments are empty, much less than the usual 6% rate¹¹. Even with higher rents, Phoenix is pulling in new folks. Last year, 85,000 people moved here, leaving cities like San Francisco and New York for a better deal¹¹. Their arrival keeps the rental market interesting.

In comparison, the Midwest saw rent increases of 5.3%, reaching $1,456¹². The Northeast's rents rose by 3.8%, making their average $2,504, the highest in the country¹². These differences show the complexity of the U.S. rental market, and Phoenix's special position in it.

Future Predictions for Phoenix's Rental Market

Phoenix is facing changes in the real estate world. It's important for renters and investors to know what to expect. Looking at data and trends helps us understand where housing and rent prices are headed.

Expected Trends in the Next Year

Rent prices in Phoenix are likely to keep rising next year. This is due to steady economic growth, more people moving in, and not enough homes. By May 2024, Arizona's median home cost rose to $451,500, which is 3.6% higher than last year¹³. Also, from January to May 2023, Phoenix home prices increased from $402,000 to $425,000¹⁴. These signs show a strong housing market, affecting rent costs.

Factors Influencing Future Rent Prices

Several key things will shape future rent prices in Phoenix. Demand, local growth, and the economy play a big role. With fewer homes for sale, prices for renting are expected to rise. For example, home sales in Arizona dropped to 8,729 in April 2024, a 10% decrease from the year before¹⁵. Higher mortgage rates, at about 7.23% in May 2024, make buying homes less affordable. This pushes more people to rent¹⁵.

Phoenix's growing job market and lifestyle also draw people in. In 2022, 77,000 new residents came from places like Washington, California, and Texas¹⁵. This increase in newcomers boosts the demand for rental homes, shaping the future of Phoenix's housing scene.

For more on Phoenix's real estate and its effect on rentals, check out this article ¹⁵. You'll find in-depth analysis on economic stability and future growth, all key to understanding rental market trends.

Understanding Phoenix's Rental Market for Renters and Investors

For anyone looking to rent or invest in Phoenix, it's key to know the rental prices. The median rent is $1,367, just like last month. Compared to last year, rents have gone down by 3.5%¹. This data helps people get a clear picture of Phoenix's rental trends.

From January to June 2024, rents in Phoenix went up by 1.0%. This was an improvement over last year when they dropped by 0.1%¹. So, Phoenix's rent situation is getting a bit better, which is interesting for those studying the market.

Phoenix is the 60th priciest big city in the U.S. with a median rent of $1,367¹. This makes it 3.1% cheaper than the national average¹. Also, Phoenix's rent is 5.8% less than the median rent across the Phoenix metro, which is $1,451¹.

In the Phoenix metro area, Surprise has the highest rent at $1,880. On the other hand, Glendale is the least expensive at $1,352¹. These numbers help us understand the bigger picture of rental prices in Phoenix.

Ten cities around Phoenix saw their rents drop over the past year. Only Chandler saw a tiny increase of 0.1%. Places like Scottsdale, Phoenix, and Goodyear all experienced a -3.5% change¹. You can find more details about this in a report here.

This quick look at Phoenix's rental prices gives renters and investors important information. Knowing these trends helps people make smart decisions in the changing rental market.

Top Rent Specials in Phoenix

Searching for the best rental deals Phoenix has is now easy. There are many rent specials across the city. These deals offer great rental choices at good prices. They are perfect for those looking for affordable places in Phoenix.

Kenect Phoenix has rents from $1,200 to $2,155, attracting many¹⁶. Casa Azure 55+ Apartments offer rates from $1,345 to $1,539, great for seniors¹⁶. Aviara Flats has prices between $1,305 to $1,493¹⁶.

Properties with high ratings offer great value. For example, Rise Encore has a 9.9 rating¹⁶. Papago Buttes III and Biltmore at Camelback also have top ratings of 9.9¹⁶. Rise Desert West and Rise Skyview are close behind with 9.6¹⁶. District at Biltmore Apartments and Zora Encanto have ratings of 9.7 and 9.1, showing their quality¹⁶.

The average rent for some apartments in Phoenix is $1,595. This is higher than the city's average of $1,480¹⁷. Andante Apartments, Ardella on 28th, and Alta North Central offer good deals. Their ratings vary from 7.9 to 9.3¹⁶.

Rental prices in Phoenix vary widely. They range from $850 to $5,045, suiting many budgets¹⁷. The lowest average price is under $550. But the highest can reach up to $2,200, showing the wide range of options¹⁷.

Renters have many specials to choose from in Phoenix. Whether they want luxury or something more affordable, there's something for everyone. Knowing about these deals helps renters find their ideal home¹⁶.

Comparing Rent Prices in Different Phoenix Neighborhoods

The neighborhood rent comparison in Phoenix shows many living options for different budgets and lifestyles. Alhambra has an average rent of $841. Maryvale is more budget-friendly, with an average rent of $818¹⁸.

Estrella Village is also affordable, with rents around $803¹⁸. Renters can find spots that fit their budget.

Fancier places like Downtown Phoenix and Old Town Scottsdale have higher rents. They average $1,568 and $1,572 respectively¹⁸.

Arcadia's rent for a one-bedroom is about $1,476¹⁸. Rent in Phoenix ranges from $2,400 to $5,200 in pricier areas. In less expensive areas, it's around $1,200¹⁹.

In Tempe’s Rio area, rents average $1,416²⁰. Glendale’s Orchard area offers low rents at $751²⁰.

Other areas like Gilbert's Spectrum have rents at $1,129. Mesa’s Deer Valley Village has rents around $906²⁰.

For more on Phoenix's rental scene, check the guide at Redfin's blog ¹⁹. It offers data for a good rent comparison, helping you find the perfect home.

Methodology for Calculating Rent Averages in Phoenix, AZ

The way we figure out rent averages in Phoenix involves many steps. We use different kinds of rental data. This ensures our results are reliable and accurate. Our goal is to give renters and investors a clear view of the market.

Data Sources and Accuracy

We use sources like rental data Phoenix gets from surveys and reports by Zumper and Case-Shiller. These sources help keep our rent numbers trustworthy. We pull from a wide range of data²¹. For example, studio apartments in Phoenix average at $1,142. One-bedroom places are about $1,376²². Across the state, the average rent is $1,567²³. This way, people can rely on the information we give them.

Extrapolation Methods Used

We use special methods to make our rent numbers more accurate. They're kind of like the ones Case-Shiller uses. These methods help us get better at predicting rent changes. They also let us compare rents from different times more reliably. We adjust the numbers if there's not enough info or if demand is low²¹. This makes sure our averages aren't thrown off by weird data points²¹. For instance, Phoenix's population density affects how much people pay for rent²². We also look at Arizona's rank in rent prices (17th highest). This helps keep our rent calculations fair and consistent²³.

For more information on how rent prices in Phoenix work, check out the complete guide.

Conclusion

The Phoenix rental market has been changing quickly. Our study found important things to know. For example, rent in Phoenix has gone down by 4.7% over the last year. Yet, since 2020, rental prices have jumped by 25.6%⁸. The average rent now is $1,422, which is 5.1% more than what most Americans pay⁸. These ups and downs show how Phoenix is dealing with the overall economy and new housing.

To really understand the housing scene in Phoenix, we need to look at the whole area. Phoenix's usual rent is about 8% less than in the wider Phoenix Metro area. But, more apartments are being built, especially in places like Tempe and the heart of Phoenix⁸. This year, there are 10,500 new rentals, 8% more than last year⁸.

When thinking about rent in Phoenix, it's smart to look at new info and past trends. Rent for a one-bedroom varies from $1,152 in Glendale to $1,495 in Scottsdale. Two-bedrooms range from $1,397 in Phoenix to $1,784 in Scottsdale⁸. Knowing the whole market can help renters and investors make good choices⁸. The rent vacancy rate has stayed steady at 7%, showing the area's stable rental market⁸. As Phoenix changes, keeping up with these trends is key for everyone involved.

FAQ

What is the current average rent in Phoenix, AZ?

In July 2024, Phoenix's median rent is $1,367. One-bedrooms cost $1,172, on average. Two-bedrooms are about $1,397.

How have rent prices in Phoenix changed over the past year?

Phoenix rents dropped by 3.5% from last year. This shows how the rental market keeps changing.

How does the cost of living in Phoenix compare to the national average?

Living in Phoenix is pricier by 23% for housing compared to the US average. But, goods and services cost 10% less. This shows big differences in costs.

What are some factors influencing future rent prices in Phoenix?

Things like market demand and new building projects will likely affect rent prices. Also, the overall economy plays a part.

How do rent prices in Phoenix compare to other metropolitan areas?

Rent in Phoenix is close to the national median. But, prices can vary a lot compared to other big cities.

What regional variations exist within the Phoenix metro area?

Rent outside Phoenix city is usually higher. Suburb living costs more due to different economic factors and living preferences.

What historical trends are notable in Phoenix's rental market?

Some years, Phoenix's rent growth was slower than the national rate. Economic conditions have greatly influenced this trend.

Which resources can help me find the best rental deals in Phoenix?

You can use websites like Zillow, Apartment Finder, and Craigslist. They offer property listings and help with finding great prices and places.

How do rent prices vary across different neighborhoods in Phoenix?

Rent prices in Phoenix neighborhoods differ a lot. This way, people can choose based on what they can afford and prefer.

What is the methodology for calculating rent averages in Phoenix?

To find rent averages, data from reliable sources are used. It's done similarly to the Case-Shiller method, ensuring figures are accurate and transparent.