Phoenix and Tempe Arizona Apartment Luxury Rental Rates and Stats
Although the area often reaches temperatures exceeding 100 degrees Fahrenheit during summer months, Arizona is quickly becoming one of the most popular places to live in America. The Copper State is home to several popular attractions, including the Grand Canyon, Petrified Forest National Park, and professional sports teams belonging to all four major sports in America – NBA’s Phoenix Suns, NFL’s Arizona Cardinals, MLB’s Arizona Diamondbacks, and the NHL’s Arizona Coyotes.
Recent statistics from the United States Census Bureau indicate that Arizona boasts the sixth-fastest population growth rate of the 50 U.S. states, Puerto Rico, the nation’s capital, and minor outlying islands like Guam and the Virgin Islands. Seeing as Phoenix, the Grand Canyon state’s capital, hosts all four of these sports teams, the Desert Botanical Garden, the Phoenix Zoo, and tons of shopping malls and other things to do, cost of living is rapidly climbing.
Per rental information-gathering giant RealPage, the top luxury apartments in Tempe AZ and Phoenix monthly rent is a staggering $924, up 70-plus dollars from August of 2015. Demand for rentals began climbing alllll the way back in 2008, when the worst recession since the Great Depression hit the United States. Phoenix residents, much like everywhere else, couldn’t afford mortgage payments and expenses related to owning homes, opting for less-risky, formerly lower-priced apartments. Even further, the many millennials who populate the area either can’t afford to or opt not to purchase homes, causing rent to increasingly, well, increase.
Statistics indicate that mean apartment rent totals in metropolitan Phoenix, especially the highly sought-after suburbs of Scottsdale and Tempe, have risen steadily throughout the past two years, of which 22 of the past 23 months featured rent increases. Unfortunately for residents of Arizona’s Urban Heart, expenses associated with repairs, maintenance, and upkeep have skyrocketed in tandem with rent prices.
Although higher rent is bad news for local residents, investors and property development companies recognize the potential for apartment housing in Phoenix. This expected increase in total available apartments could cause average rent to decrease. Whether cost of housing sinks or not, investments made in metropolitan Phoenix will further stimulate its market, helping out the state of Arizona, Phoenix itself, and nearby cities in terms of economic growth.
A majority of the Valley’s apartments began construction in Tempe, known for its dense population of Arizona State University students, collectively making Sun Devils more abundant than any other postsecondary institution’s enrollment in the United States. High-end, luxury apartment complex were built, in particular, near to Arizona State University’s campus and the lake area.
Today, many pieces of land that had gone undeveloped for decades on end in downtown are now home to residential complexes, unarguably beneficial for its renting residents and the city of Phoenix itself. Scottsdale and parts of central Phoenix had several buildings and homes blown up, destroyed for the purpose of brand new construction. These areas are quickly becoming destinations for condos and apartments alike.
As anyone with the slightest knowledge of economics understands, the rise in rentable apartment housing will draw more people to Phoenix. Because apartments are significantly cheaper than renting homes – and buying houses, to that point – nearby residents will likely pour in to Phoenix, rather than shooing them away by being forced to sign long-term leases more often associated with residential housing.
Phoenix isn’t the only metropolitan area in the contiguous United States with increasing rents. Another metric by Trend Statistics shows that Phoenix is home to the fourth-largest increase in average monthly rent prices throughout the summer months of 2017. However, most metropolitan areas don’t consistently experience increases in housing costs, dipping downwards a few months per year. Phoenix is unique in its cost of living spikes, with apartment rent prices only losing value in one of the past 23 months.
Residents of Phoenix are likely to find more jobs, with a whopping 70,000 new occupational opportunities added in its metropolitan area from 2015 to 2016. Fortunately for the city, unfortunately for renters seeking abundant, affordable housing, only a fraction of rental housing units are up for grabs, with fewer than 5 percent of properties being void of renters. Statistics indicate that the price of rent is increasingly significantly faster than wages and annual salaries, making it rougher for the non-wealthy residents of Phoenix. Thanks to our friends at Apartments.com, we know that the median rent price is up an astounding 8 percent from 2015 to 2017, more than most areas in the entire nation of America. In comparison, salaries, wages, and other forms of compensation have only risen 2.4 percent in the metropolitan area of the city.
Some apartments cost as much as $2,000 per month, if not even higher. However, with these prices consistently increasing, so is the quality of life, and quality of apartment housing.