GILBERT, AZ (3TV/CBS 5) - The housing market in Arizona is continuing to change as more people relocate and properties are high in demand. Natasha Smith has lived in her Gilbert home for seven years. It's where her kids grew up and where her late husband last lived. Unfortunately, her landlord is now selling the house and she's trying to find another house to rent in the area--with no luck. 

Hot rental market

Some landlords are putting their house on the rental market and getting $200, $300 per month more.

"Every process that I've had is, either the house is completely overpriced for what it's offering or it's gone before you can even get an application in," Smith said. Smith says she applies to a new property every day, and it's clear the rental prices are much higher than they used to be. "I have looked anywhere from 1,850 a month to 2,400 a month," Smith said.

"Just in the last 90 days, we're up about $75 a month (increase) on average on rentals, which is crazy. We don't see increases like that normally," said Jason Jeroux, the broker and owner of 410 Real Estate in Gilbert. "We've seen people getting, $200 to $300 more a month now if a tenant vacates and they put it back on the market."

The housing market is so hot buyers are paying $1 million over asking price

Jeroux had a listing for one of his clients, and Smith applied. However, she received an email back saying that multiple other people also applied and now applicants have the opportunity to place a bid.

"Rather than just saying, 'oh, this person offered me $200 more, I'm going to approve that and just deny everybody,' we want to make everyone is aware of the opportunity and have a chance to change their terms if they'd like to," said Jeroux. "They asked three simple questions: how much can you give? How soon can you move in? And how long of a lease are you asking for?" Smith said.

New "tiny houses" in Tempe will offer affordable housing

Smith said she went in higher than the asking price, said she could move in ASAP, and would sign for a 2+ year lease. However, she says she was told someone still outbid her. "It scares me. I can't be the only person out there that has limited funds they can afford to put towards rent, car payments, health insurance," Smith said.

Home prices just smashed another record

Jeroux says it's not unheard of for rental properties to start bidding wars. However, it is new to the Arizona market right now because of the change in supply and demand. He says, that he knows of, there are about 10 to 12 on the market right now.

Natasha Smith

"Either the house is completely overpriced for what it's offering or it's gone before you can even get an application in," Smith said.

"It's kind of a strange thing. I'm in the business of helping property owners get the best they can but at the same time knowing that affordable housing is definitely a problem that needs to be addressed," Jeroux said. He said those who did not win the bid were refunded their application fee, including Smith, who is still looking for a rental home.

Copyright 2021 KPHO/KTVK (KPHO Broadcasting Corporation). All rights reserved.


Recommended for you