Phoenix rent prices drop, but costs for leasing still high
PHOENIX (3TV/CBS 5) - There is better news when it comes to rent prices across the Valley. Rent.com says the prices of rents have been dropping over the past few months. The recent report from Rent.com shows the Phoenix Metro is up 2.77% yearly, but the month-to-month is down .72%.
Researcher Jon Leckie says that shows a good trend for our area. “It’s good news in the sense rents are starting to moderate it looks like we are getting away from the time period of extreme rent increases but our year to year prices are still up,” he said. “Hopefully we are getting away from the extreme jumps and so next year when you go to renew your lease you won’t have as much sticker shock.”
Leckie says the prices year-to-year peaked in May and June for the Phoenix area. Rent costs rose by about 36% then. That number has come down, but the prices haven’t dropped enough to make up the difference between those big spikes earlier this year. “Its going to take a lot to make up for that,” Leckie said. “It’s not coming all the way back down.”
Leckie says more people are returning to buying homes with the housing market cooling off recently. As a result, he says fewer people are looking to rent, driving down the prices. While renters should get used to the elevated cost of signing a lease, he says we shouldn’t be seeing major jumps in prices. “We’ve hit a ceiling in many places where there is only so much people are willing and able to spend on rent. Long term, I think Phoenix is well-positioned to keep rents from taking off again like they did.”
Leckie says if you are in an apartment you like and can afford, stay there. Landlords are more willing to work with people they know are good tenants.
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