Why Rents Are So High (Phoenix, Mesa: apartment complexes, rentals, mortgage)

[Prickly Pear]

https://www.phoenixnewtimes.com/news...t-edf-10955806

[yukon]

https://tinyurl.com/y69ugj45 From Housing Wire:

Demand for apartments hit a high not seen in five years as a shortage of affordable homes has locked an increasing number of Americans out of the market.

According to recent data from RealPage, the national occupancy rate rose to 95.8% from 95.4% last year.

The increase in demand has sent rental prices upward, causing them to rise 3% from the same time last year.

Rental price increases varied across cities, with Las Vegas and Phoenix posting the greatest gains at 8.8% and 8.1%, respectively.

In reality, I think many renters here saw more than an 8% increase, especially if their property sold. Mine went up 12% and it's looking like it might go up another 15%-18% when it's time to renew. That's assuming they don't hit me with "market rate", which is currently showing at 43% higher than my already increased rate.

[Potential_Landlord]

Originally Posted by yukon

https://tinyurl.com/y69ugj45 From Housing Wire:

Demand for apartments hit a high not seen in five years as a shortage of affordable homes has locked an increasing number of Americans out of the market.

According to recent data from RealPage, the national occupancy rate rose to 95.8% from 95.4% last year.

The increase in demand has sent rental prices upward, causing them to rise 3% from the same time last year.

Rental price increases varied across cities, with Las Vegas and Phoenix posting the greatest gains at 8.8% and 8.1%, respectively.

In reality, I think many renters here saw more than an 8% increase, especially if their property sold. Mine went up 12% and it's looking like it might go up another 15%-18% when it's time to renew. That's assuming they don't hit me with "market rate", which is currently showing at 43% higher than my already increased rate.

Ouch this really hurts. On the other hand a friend of mine bought rental properties in 2010 and it's good for him. It looks like phase 2 of the RE bull market has started from 2011.

[jaredC]

Originally Posted by yukon

https://tinyurl.com/y69ugj45 From Housing Wire:

Demand for apartments hit a high not seen in five years as a shortage of affordable homes has locked an increasing number of Americans out of the market.

According to recent data from RealPage, the national occupancy rate rose to 95.8% from 95.4% last year.

The increase in demand has sent rental prices upward, causing them to rise 3% from the same time last year.

Rental price increases varied across cities, with Las Vegas and Phoenix posting the greatest gains at 8.8% and 8.1%, respectively.

In reality, I think many renters here saw more than an 8% increase, especially if their property sold. Mine went up 12% and it's looking like it might go up another 15%-18% when it's time to renew. That's assuming they don't hit me with "market rate", which is currently showing at 43% higher than my already increased rate.

Absolutely. It’s pretty scary being a renter. Doubly so renting month-to-month. It’s scary to even consider, that my landlord could put this place up for rent, at “market rate” for $1300-1400/ month. That, for me is nearly 40% increase in rent. It really is astronomical. Considering that I am now a single parent, the increase would put a huge financial strain on me and my daughter. I’m hoping that the fact I’ve been living here for six years and have not caused issues with my landlord, that he just hasn’t bothered attempting to re-rent it.

[WhiteSandsYucca]

Those rent prices are way to high for Phoenix. I don't think it's worth it to live there with those prices. Where's the ocean?

[KurtAZ]

Originally Posted by WhiteSandsYucca

Those rent prices are way to high for Phoenix. I don't think it's worth it to live there with those prices. Where's the ocean?

6 hours west or 4 hours south.

[Potential_Landlord]

How did we get there so fast? It seems like Phoenix set out the first wave of rent increases that California (or Germany for that matter) saw, but now we catch up big time.

[john3232]

My renters are a good $100 under market rate. However, just as important as the amount of rent I receive is the willingness of renters to work with me when problems develop. I appreciate renters who understand except in the case of an emergency I can't always get someone right away. Now, if renters are going to embellish the extent of the problem or make it difficult for me to arrange a day/time to come by well... I'm not going to be happy.

I was a renter for 35 years and knew how to keep landlords happy and rent increases to a minimum.

But rents are on the rise in the Phx metro make no doubt about it. The 3 bed 2 bath 1500 sq ft. homes I own in East Mesa should get $1375- $1400 the next time they become vacant. At present i receive $1295

[Potential_Landlord]

Originally Posted by john3232

My renters are a good $100 under market rate. However, just as important as the amount of rent I receive is the willingness of renters to work with me when problems develop. I appreciate renters who understand except in the case of an emergency I can't always get someone right away. Now, if renters are going to embellish the extent of the problem or make it difficult for me to arrange a day/time to come by well... I'm not going to be happy.

I was a renter for 35 years and knew how to keep landlords happy and rent increases to a minimum.

But rents are on the rise in the Phx metro make no doubt about it. The 3 bed 2 bath 1500 sq ft. homes I own in East Mesa should get $1375- $1400 the next time they become vacant. At present i receive $1295

Are those rent zestimates realistic. I hadn't looked in years but now it says 1,800 for our home. Wow.

[john3232]

Originally Posted by Potential_Landlord

Are those rent zestimates realistic. I hadn't looked in years but now it says 1,800 for our home. Wow.

For 3 bed 2 bath 1500 in East Mesa Zillow has my three properties at:

$1450
$1575
$1525

I would list $75-$100 in order to get a lot of interest. I don't need top dollar but I do want quality renters.

Be it vendors or renters there is so much b.s. that everything has got to be checked and checked again.

But that's part of owning rental property.